KUALA LUMPUR: Mestron Holdings Bhd
's wholly-owned subisidiary Liziz Biogas Sdn Bhd has secured a new Feed-in Approval (FiA) from the Sustainable Energy Development Authority Malaysia (Seda) to expand its biogas power generation facility in Gua Musang, Kelantan.
The group said it can proceed to increase its approved net electricity export capacity by 18% from 2MW to 2.36MW, as well as raisin its approved installed capacity by 13% from 2.76MW to 3.12MW.
Under the new FiA, the facility’s FiT rate will increase from the existing 39.75 sen per kilowatt-hour (kWh) to 45 sen/kWh for the first 10 years, followed by 43 sen/kWh for the subsequent 11 years.
Taking effect from the scheduled FiT commencement date of Aug 17, 2029, the revised tariff establishes a 21-year framework for renewable electricity sales, subject to the applicable approval conditions.
Mestron plans to procure and install an additional 1.5MW gas engine generator to boost the plant’s generation output and operating efficiency, in line with the capacity upgrade.
Management estimates that the facility has the potential to generate approximately RM7.5mil in total annual revenue, subject to actual generation performance, plant availability, and operating conditions.
"With higher approved electricity export capacity and an enhanced tariff structure, we are strengthening the commercial foundation of our biogas operations and creating greater visibility for long-term revenue generation.
"As we continue to grow beyond our established steel pole manufacturing business, renewable energy represents an important avenue for diversification," said Mestron managing director Por Teong Eng in a statement.
