Worldwide Holdings Bhd expects its energy and renewable energy business to contribute about 40%-50% of the company’s total earnings, after the completion of the RM3.3 billion, 1,200-megawatt (MW) power plant in Pulau Indah, Selangor.
The combined-cycle gas turbine (CCGT) power plant is slated to be commissioned in January 2024.
Group chief executive officer Datin Paduka Norazlina Zakaria said the company, which is involved in activities from waste management to renewable energy, also expected its two energy plants located in Jeram, Kapar and Tanjung 12, Kuala Langat to start this year, which could generate another 90 MW.
“Our transformation plan is to balance our portfolio between property, environmental services and energy, and we aspire, over the next five years, for the renewable energy and energy business to be a major contributor at 40%, and the property and environmental services segments to contribute 30% each,” she added.
Norazlina said the CCGT power plant would be developed by Pulau Indah Power Plant Sdn Bhd (PIPP) , a joint venture between Worldwide and Korea Electric Power Corporation.
“This will be our second power plant with 75% majority shareholding, after the Kuala Langat plant (in which Worldwide has a 25% stake),” she told a press conference, after a signing ceremony for the co-financing of the project here today.
PIPP has secured a Fresh Commodity Murabahah Term Financing-i Facility of up to RM2.7 billion in relation to the development of the power plant provided by three financial institutions – Maybank Islamic Bhd (40%), Bank Pembangunan Malaysia Bhd (40%) and UOB Malaysia (20%). The balance of the cost of development will be covered by the company’s equity.
She said the project was now set to move forward into its construction phase, expected to begin in the second half of this year.
“Once it is commissioned in January 2024, the power plant is expected to support the increasing power demand in the Klang Valley and boost the baseload supply for the region.
“The power plant will generate low carbon energy to the central region of Peninsular Malaysia, including the Klang, Sepang and Kuala Langat districts which have a high demand for electricity; and it is expected to operate with a net efficiency of more than 62%, much higher than coal or oil equivalent,” she added.