Jentayu hopes to sign PPA for Sipitang hydropower plant by mid-year


KOTA KINABALU: Energy solutions provider Jentayu Sustainables Berhad is hoping to ink its power purchase agreement (PPA) with the Energy Commission of Sabah (ECoS) by the middle of the year.

Its chief executive officer Baevinraj Thiagarajah (pic) said although the timeline may change, he believes the company was on track to execute the PPA for its 170 megawatt (MW) run-of-river hydropower plant in Sipitang worth RM2.8bil.

Dubbed Project Oriole, it has seen expenditure of RM73.67mil on preliminary works, including: consultation with the Federal and Sabah governments; securing land and water use rights; building the necessary infrastructure to access the site; as well as surveying, feasibility and verification studies.

“Recently, we received the initial letter of notification from ECoS, which is one more important step in our process to get this project off the ground,” he said when met at the company’s Raya Open House here on Tuesday (April 16).

Baevinraj added that Sabah Electricity Sdn Bhd (SESB) has a 20% stake in the project while 10% is held by the Sabah Foundation.

Expected to be completed between late 2027 and early 2028, Project Oriole aims to provide a stable and reliable electricity supply accounting for approximately 16% of the state’s generation capacity.

“For us, this project is also part of our overall turnaround plans for Jentayu.

"The other part is the acquisition of Telekosang Hydro, for which we have secured Securities Commission approval.

"With these coming together, we are hoping to complete all transactions and achieve financial close for Project Oriole by this year,” Baevinraj added.

The proposed acquisition of hydro assets will give Jentayu control over the two run-of-river hydropower plants with a joint capacity of 40MW.

They are currently operated by Telekosang Hydro One Sdn Bhd and Telekosang Hydro Two Sdn Bhd in Tenom and are, for now, the largest privately owned run-of-river hydropower plants in Malaysia.

Project Oriole is being developed in line with the Sabah Energy Road Map and Master Plan (RAMP) 2040 published by the state government in September last year.

It is positioned to play a significant role in tackling the current challenges facing Sabah’s electricity supply.

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