Kinergy's subsidiary gets SEDA FiT 2.0 nod for 2 hydropower projects with 21-year fixed tariff
Achieved through its wholly owned subsidiary KAB Energy Holdings Sdn Bhd, the latest milestone adds a total installed capacity of 8.04MW comprising two facilities with outputs of 5.2 megawatts (MW) and 2.84MW.
Building on the success of the group's mini-hydropower project in Indonesia – acquired in August 2023 and also powered by run-of-river technology known for minimal environmental impact – the group is now expanding its hydropower footprint with two locally approved projects under the SEDA's FiT 2.0 programme.
As these local projects advance, the SES segment will benefit from predictable, recurring revenue over a period of 21-year period through SEDA's structured tariff framework.
With a fixed tariff of 34 sen/kWh for the first 10 years and 32 sen/kWh for the subsequent 11 years, the group's bold move to initiate its renewable energy (RE) portfolio through its mini-hydropower project in Indonesia is now translating into tangible growth and stronger local presence.
'This progression from Indonesia to Malaysia highlights our SES segment's scalability and synergy as we continue to unlock the growth potential of our sustainable energy portfolio,' commented KAB's group managing director Datuk Lai Keng Onn.
'The approval of over 8.0MW reflects a well-aligned regional strategy that reinforces the group's commitment to sustainable energy development across Southeast Asia.'
Added Lai who is also KAB's executive deputy chairman: 'We aspire to continue contributing to Malaysia's energy transition goals by ensuring that each initiative delivers significant sustainable economic growth while strengthening our national energy security.'
SEDA's FiT 2.0 initiative is designed to encourage investment in RE, drive job creation and accelerate Malaysia's transition towards more sustainable energy sources.
The initiative's transparent online bidding process has enhanced industry participation, investor confidence and the development of renewable energy infrastructure nationwide.
At the close of today's (July 24) mid-day trading break, KAB was down 0.5 sen or 1.52% to 32.5 sen with 4.24 million shares traded, thus valuing the company at RM691 mil. – July 24, 2025
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