PETALING JAYA: Kawan Renergy Bhd
(KRB) has received the green-light from Sustainable Energy Development Authority to build and run a 2.5 megawatts (MW) biomass power plant under Malaysia’s Feed-in Tariff (FiT) scheme through its subsidiary, Magenko Renewables (Ipoh) Sdn Bhd.
In a filing with Bursa Malaysia, the approval grants Magenko a 21-year concession to sell green electricity to the national grid, with a net export capacity of 2.0MW.
Under the tariff structure, the plant will fetch RM0.3800 per kilowatt-hour (kwh) for the first 10 years, before adjusting to RM0.2880 per kwh for the remaining 11 years. The project is scheduled for commercial operations starting Aug 17, 2029.
Financed via initial public offering proceeds and bank borrowings, the project represents a structured execution of KRB’s expansion into asset-ownership within the renewable energy space.
While the plant will have no material impact on earnings for the financial year ending Oct 31, 2026, it locks in a long-term, inflation-resilient cash flow engine beginning late financial year 2029.
