KUALA LUMPUR (Jan 26): G Capital Bhd has further downsized the capacity of its 70%-owned unit's solar photovoltaic (PV) system on the premises of a wholly-owned unit of Chin Well Holdings Bhd to 2MW.

According to a bourse filing on Friday (Jan 26), this came after design revisions following a supplemental power purchase agreement (SPPA) that was inked between its 70%-owned subsidiary Solarcity Malaysia Sdn Bhd and Chin Well’s Chin Herr Industries (M) Sdn Bhd.

“Save for the revision to the estimated installed capacity, there is no other changes to the PPA signed on May 9, 2022,” the renewable energy player said.

Based on the initial PPA dated May 2022, the solar plant to be built on Chin Herr’s premises was to have a capacity of 3MW (3,000.24KW).

This was reduced to 2.47MW (2,470.6 KW) after an SPPA later in July 2022, before being being reduced to 2MW following the latest supplementary agreement.

Under the initial PPA, G Capital is to also build a 2.38MW solar plant on the premises of another Chin Well wholly-owned unit, Chin Well Fasteners Co Sdn Bhd.

Besides designing, constructing and installing the solar plants, G Capital is to also own, operate and maintain the solar plants for 25 years.

Electricity generated from the solar plants is to be sold to Chin Well at an agreed selling price, which translates into earnings of G Capital's solar energy division after deducting associated costs.

The two plants are expected to achieve commercial operation by the second quarter of 2024. The plants were initially scheduled to be commercially operational by the fourth quarter of 2022.

Shares in G Capital ended half a sen or 1.2% lower at 41 sen, valuing the group at RM131.75 million. The share price of Chin Well closed one sen or 0.79% higher at RM1.28, giving the company a market capitalisation of RM383.4 million.