KUALA LUMPUR: Ranhill Holdings Bhd, which is involved in water supply services and power sector, aims to increase its power generation capacity to 1,000 megawatts (MW) by 2020 from 380MW currently.
President and chief executive, Tan Sri Hamdan Mohamad said to meet this target, the company was focusing on supplying renewable energy such as solar, wind and geothermal, while also looking at potential acquisition of existing power plants when the opportunities arise.
“This is in line with the Malaysian National Renewable Energy Policy and Action Plan to expand the use of renewable energy to 2,000 MW by 2020 and to achieve optimum use of renewable energy in the next three years,” he told reporters after the company’s annual general meeting yesterday.
Currently, the company operates two combined cycle gas turbine power plant in Kota Kinabalu, Sabah with a capacity of 190MW each.
Hamdan said the company had also been awarded by the Energy Commission with a 300MW combined cycle gas turbine power plant in Sandakan, Sabah and negotiation on the tariff from the power plant is currently being sorted out.
“We hope to start construction by end of this year and commence operation by 2020,” he said.
He said by increasing the generation capacity, the company was also aiming to balance its business portfolio between water supply services and power sector to 60:40 by 2020 from 70:30 currently.
He added that the company also aimed to increase its existing power plant capacity through future investment in overseas projects in Southeast Asian countries such as Thailand and Myanmar.
On water supply services, Hamdan said the company planned to invest RM800 million within the next three years to bring down non-revenue water, which are derived from pipe leakages, to between 12 and 15 per cent from 20 per cent currently.
Via its subsidiary, SAJ Ranhill Sdn Bhd, Ranhill has been granted an exclusive licence by the Ministry of Energy, Green Technology and Water to provide source-to-tap water supply services with total capacity of 1,986 million litres per day (MLD) to end-customers in Johor.
On overseas operations, Hamdan said the company was keen to leverage its partnership with China’s SIIC Environment Holdings Ltd to expand its presence in the region’s water services business.
He said China, under the One Belt One Road initiative, had been very active in terms of investing in the region.
Ranhill operates water concession assets through its subsidiary, Ranhill Water Technologies (Cayman) Ltd, in China with a total capacity of 260 MLD and in Thailand with total capacity of 102MLD. — Bernama