PETALING JAYA: Kinergy Advancement Bhd (KAB) is acquiring a 47.5% equity stake in Jati Cakerawala Sdn Bhd, a wholly-owned subsidiary of Pesaka Ventures Sdn Bhd (PVSB) for RM35 million.
This acquisition marks KAB’s potential entry into being an independent power producer (IPP).
KAB will assume the role as one of the project developers, alongside other stakeholders, in driving the repowering of this 650-megawatt power plant.
The energy asset was a 650-megawatt (MW) power plant situated on a strategically located 37.5-hectare coastal site in Perlis, owned by Teknologi Tenaga Perlis Consortium Sdn Bhd (TTPC), an independent power producer (IPP) in Malaysia.
The plant completed its 21-year power purchase agreement (PPA) and was decommissioned in March 2024.
Having been a critical asset in the nation’s energy supply for over two decades, the site has now reopened as a high-potential project.
Its redevelopment and repowering present a unique opportunity to further strengthen the nation’s energy infrastructure and offer longer-term energy security for Malaysia’s future growth.
KAB has secured this deal with PVSB, having been identified as the developer to redevelop and repower this site.
Beyond the land asset that accompanies this acquisition, the competitive advantage lies in the infrastructure, which is expected to deliver significant benefits and drive the success of this repowering project, solidifying the group’s investment rationale.
KAB executive deputy chairman cum group managing director Datuk Lai Keng Onn said the strategic value of this acquisition is rooted in the robust energy infrastructure established in the past.
“Its proximity to TNB’s 275kV transmission line and the Peninsular Gas Utilisation (PGU) III pipeline ensures seamless access to both power distribution and natural gas supply,” he said in a statement.
Additionally, Lai said 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.
“Recognising the critical power supply gap in West Malaysia, this acquisition and the subsequent repowering will be instrumental in addressing the nation’s energy shortage.
“It will make a decisive and lasting contribution to stabilising Malaysia’s energy supply, ensuring long-term energy security for the entire country.”
From the date of this announcement, KAB is committed to utilising its full capabilities and resources alongside all other stakeholders to ensure the successful development of this pivotal energy project.
Upon commissioning of the new power plant, KAB anticipates it will 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.
Lai said the strategic value of this acquisition is rooted in the robust energy infrastructure established in the past.
Source: The Sun Daily
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