Kinergy Ventures Into IPP Sector, Acquires 47.5 Pct Stake In Jati Cakerawala

KUALA LUMPUR, Feb 7 (Bernama) -- Kinergy Advancement Bhd (KAB) is venturing into the Independent Power Producer (IPP) sector with the acquisition of a 47.5 per cent stake in Jati Cakerawala Sdn Bhd, a wholly-owned subsidiary of Pesaka Ventures Sdn Bhd (PVSB), for RM35 million.

In a statement today, KAB said it would assume the role as one of the project developers, alongside other stakeholders, in the repowering of a 650-megawatt power plant on a 37.5-hectare coastal site in Perlis owned by Teknologi Tenaga Perlis Consortium Sdn Bhd (TTPC), a prominent IPP in Malaysia.

The plant completed its 21-year power purchase agreement and was decommissioned in March 2024.

KAB said it has successfully secured this strategic deal with PVSB, having been identified as the ideal developer to collaborate in redeveloping and repowering this site. 

“The strategic value of this acquisition is rooted in the robust energy infrastructure established in the past. Its proximity to Tenaga Nasional Bhd’s 275-kilovolt transmission line and the Peninsular Gas Utilisation (PGU) III pipeline ensures seamless access to both power distribution and natural gas supply.

“Additionally, the availability of a reliable water source at the site further confirms that this land is primed for the development of a new power plant,” said KAB executive deputy chairman cum group managing director Datuk Lai Keng Onn said.

Upon commissioning the new power plant, KAB expects it to make a significant and sustainable contribution to the group’s earnings growth.

“As a flagship repowering project, it will further solidify KAB’s expertise and experience, reinforcing its position to pursue continued growth opportunities in the energy sector,” it added.

-- BERNAMA