KUALA LUMPUR (April 24): Project Oriole, Jentayu Sustainables Bhd’s (KL:JSB) 162MW flagship run-of-river hydroelectric project, has been further delayed, with its commercial operation date now set for April 30, 2030.
In a filing with the stock exchange on Friday, the group said the revision follows an extension of the project’s financial close date by six months to Oct 31, 2026, from the previous timeline.
This marks the third revision to the RM2.8 billion project’s operational timeline. Its original date, set out in a letter of notification issued by the Energy Commission of Sabah (ECOS), was Dec 31, 2029, before being revised to June 1, 2029 following the signing of a power purchase agreement with Sabah Electricity Sdn Bhd, before being pushed back to September 2029.
Notably, Jentayu has previously faced legal challenges in relation to the project, after a shareholder filed a court action in December last year seeking to invalidate an extraordinary general meeting, in which shareholders approved a proposed private placement to raise up to RM45.26 million to fund the project.
The High Court later ruled in favour of the company in February 2026, allowing it to proceed with the proposed share issuance.
Separately, Jentayu said it has received approval from the Sabah Energy Council to increase the provisional tariff for the project to 32.04 sen/kWh, from 31.50 sen/kWh previously. The adjustment, however, remains subject to the signing of a supplementary power purchase agreement.
To recap, ECOS awarded the letter of intention for the RM2.8 billion hydroelectric project at Hulu Sungai Padas, Sipitang, Sabah, in September 2024 to Oriole Hydro Padas Sdn Bhd, regarded as one of Sabah’s largest renewable energy developments.
Jentayu holds a 70% stake in Oriole Hydro, alongside Sabah Electricity Sdn Bhd (SESB) (20%) and Yayasan Sabah (10%).
Oriole Hydro later signed a 40-year power purchase agreement with SESB in April 2025. Under the terms, SESB will purchase up to 868,894MWh annually, known as the Annual Firm Energy Quantity (AFEQ), at 31.5 sen/kWh.
Additional energy beyond the AFEQ, up to the maximum annual allowable quantity (MAAQ) of 950,222MWh, may also be sold at the same rate under a willing-buyer, willing-seller arrangement. Any output above the MAAQ can be sold at eight sen/kWh, subject to mutual agreement.
Once operational, the project is expected to generate about RM300 million in annual recurring revenue for Jentayu.
Shares in Jentayu rose one sen, or 3.5%, to 29.5 sen ahead of the announcement on Friday, giving the group a market capitalisation of RM160.6 million.