Gamuda s floating solar project in Sabah, while small compared to its Ulu Padas hydroelectric plant, significantly expands its renewable energy (RE) pipeline and strengthens its recurring income base, according to CIMB Securities Research. The project involves integrating a 150MWac floating solar plant alongside the 187.5MW hydroelectric plant, with Gamuda holding a 45% stake in the UPP consortium.
s floating solar project may be small relative to its Ulu Padas hydroelectric plant, it nevertheless expands the company s burgeoning renewable energy (RE) pipeline, underpinning its recurring income base, says CIMB Securities Research.
Earlier this week, Gamuda announced that the Upper Padas Power (UPP) consortium had already accepted a revised letter of notification (LON) from the Energy Commission of Sabah mandating the integration of a 150MWac floating solar plant alongside the 187.5MW hydroelectric plant. Gamuda has an effective 45% stake in UPP, while the rest held by Sabah Energy Corp (40%) and Kerjaya Kagum Hitech JV (15%).
Gamuda said the hydro component is expected to generate 1,052GWh annually while the solar portion will contribute an additional 300GWh. It added the project will be funded through a mix of internally generated funds and borrowings, with a minimum debt-to-equity ratio of 80:20. CIMB Research noted that according to the LON, the concession period for the Ulu Padas hydroelectric project will remain at 40 years.
Potential annual revenue from this integrated project is projected to exceed RM450mil, with the power purchase agreement expected to be finalised by the end of 2026. Based on Gamuda s tentative share of construction works, this could translate into a prospective order book accretion of about RM375mil, pending the finalisation of contract awards, the corresponding power purchase agreement, and other related details.
The contract to build the floating solar plant is only expected to be awarded by 2029 (targeted completion: 2031). UPP will fund the required capital expenditure (capex) of RM500mil for the floating solar plant via a combination of debt and equity funding (minimum debt-to-equity ratio: 80:20).
CIMB Research also stated that Gamuda s floating solar project sits alongside its already rapidly expanding RE pipeline, which also includes the gridscale floating solar projects in Tasmania (600MW) and similar projects with Gentari and SD Guthrie. By extension, the integrated project will help rebuild the group s recurring income base via clean energy under the expanded Gamuda Green Plan (through 2030), the research house said. Follow us on our officia
Gamuda Floating Solar Project Ulu Padas Hydroelectric Plant Renewable Energy Pipeline Recurring Income Base CIMB Securities Research Upper Padas Power (UPP) Consortium Energy Commission Of Sabah Letter Of Notification (LON) Floating Solar Plant Hydro Component Solar Portion Internally Generated Funds Borrowings Debt-To-Equity Ratio Potential Annual Revenue Power Purchase Agreement Construction Works Floating Solar Plant Debt Funding Equity Funding Recurring Income Base Clean Energy Gamuda Green Plan Tasmania Gentari SD Guthrie
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