KUALA LUMPUR (Dec 27): Jentayu Sustainables Bhd said the Telekosang Hydro 2 (TH2) hydropower plant in Sabah, with a capacity of 16 megawatts (MW), has attained the feed-in-tariff commencement date (FiTCD) as of Monday (Dec 25).

This marks the completion of the 40MW Telekosang Hydro run-of-river project as a whole, the group said in a statement on Wednesday. Telekosang Hydro 1 (TH1), with a capacity of 24MW, achieved its FiTCD in February.

"TH2 has now fully completed its development phase, and is now fully online and operating commercially, successfully supplying power to Sabah Electricity Sdn Bhd (SESB) as contracted," said Jentayu executive chairman Datuk Beroz Nikmal Mirdin.

"The 40MW Telekosang Hydro project is now effectively delivering clean and reliable electricity at one of the lowest tariff rates in the whole of Sabah," said Beroz.

Beroz added that the required submissions to the Sustainable Energy Development Authority (Seda) and SESB have been made, and both entities will review the test results before issuing the relevant certification in around three months.

In June 2021, Jentayu announced proposals to acquire the two companies that own TH1 and TH2 — Telekosang Hydro One Sdn Bhd and Telekosang Hydro Two Sdn Bhd.

"Now that both TH1 and TH2 have achieved their final and most important milestones, we have satisfied a critical condition precedent necessary for Jentayu to acquire and inject TH1 and TH2 into Jentayu, subject to final approval by shareholders and regulators," Beroz said.

With the completion of the Telekosang project, Beroz said the group will now move on to the next run-of-river hydropower plant — the 170MW Project Oriole in Sipitang.

Given the success of TH1 and TH2, Beroz expressed confidence in delivering another commercially successful plant to significantly contribute to Sabah’s urgent power needs.

Jentayu secured a letter of intent from the energy ministry back in October 2022, allowing Jentayu to continue developing Project Oriole.

The project was subsequently included as a confirmed project in the Plant Up Plan for Sabah released on Sept 19, 2023, outlining the development plan for future power-generating plants in Sabah.

The estimated cost for the project is RM 2.8 billion, and it is anticipated to be completed by December 2027.

Shares in Jentayu settled three sen or 2.4% higher at RM1.28, giving the group a market capitalisation of RM537.88 million.