42 Performance Revi ew 02 Sect ion Ranhi ll Ut i l i t i es Berhad MANAGEMENT DI SCUSS ION & ANALYS I S RPI and RPII each operate a Combined Cycle Gas Turbine (“CCGT”) power plant, located in the Kota Kinabalu Industrial Park (“KKIP”) in Sabah. Each CCGT has a power generating capacity of 190 MW. Together, both power plants deliver 380 MW to the Sabah grid. This is equivalent to about 40% of the total power generating capacity in the state and makes Ranhill the largest independent power producer (“IPP”) in Sabah. In FY2022, Ranhill’s two power plants continued to outperform against all major key performance indicators (“KPI”) stipulated in the PPA with SESB. RPI FY2021 FY2022 SESB’s KPI Equivalent Availability Factor (“EAF”)(%) 92.54 90.25 87 Forced Outage Rate (“FOR”)(%) 1.65 4.08 4 Total electricity delivered to the grid (GWh) 1,145 1,214 1,129 While RPI posted a higher FOR for FY2022 – the 4.08% marginally exceeds SESB’s KPI and was due to a single forced outage incident in FY2022. However, the incident was due to a thrice postponement of scheduled maintenance, at the order of SESB. The postponements were necessary towards ensuring sufficient power was supplied to the grid, given the low energy capacity situation in Sabah. Ultimately, maintenance could not be delayed further due to limitations in running hours of the turbine and with that, a forced outage was necessary. Excluding this single incident, FOR was only 2.99% and far below the 4% threshold. The insurance auditor for plant operations has agreed to exclude the forced outage incident in the determination of future premiums. RPII FY2019 FY2020 FY2021 FY2022 SESB’s KPI Average Available Time (“AT”)(%) 93.57 95.86 97.59 90.64 Not Applicable Contract Year Block AT (%) 94.12 95.42 94.56 94.69 94 Unplanned Outage Rate (“UOR”)(%) 2.85 2.96 1.77 2.67 4 Total electricity delivered to the grid (GWh) 1,058 1,145 1,174 1,178 1,168 While RPII’s overall AT for FY2022 was 90.64%, the actual Contract Year Block AT stands at 94.56%, higher than the stipulated PPA requirement of 94%. The Contract Year Block is calculated using a three-year average while Average AT is calculated based on a single year. Availability Capacity Payment (“ACP”) is calculated based on the Contract Year Block AT. The decline in AT was due to increased scheduled and unscheduled maintenance works undertaken during the financial year. Ranhill’s expansion into solar via its 50 MW Large Scale Solar 4 (“LSS4”) solar farm continues to see steady progress during the year. The project is expected to achieve its scheduled commercial operation date by end 2023 with a revised concession period of 25 years, from the original 21 years. The experience gained from the successful bidding process as well as undertaking of the EPCC works will hold Ranhill in good stead in bidding for similar Large Scale Solar (“LSS”) projects, both locally and abroad. Post SCOD, in December 2023, Ranhill shall undertake (“O&M”) of the solar farm, located in Bidor, Perak. On 17 November 2022, Ranhill issued RM145.0 million being tranche 1 of the RM310.0 million Sukuk Murabahah program towards financing the LSS4 solar plant in Bidor, Perak. The remaining Sukuk has been earmarked for the potential extension of RPI’s concession, which will expire in October 2029. The Group had participated in the Request for Proposal (“RFP”) by the EC for the 100 MW CCGT power plant West Coast Sabah tender. The Group is happy to report that the EC has announced that the unincorporated consortium comprising RCSB and Sabah Energy Commission (“SEC”) have been selected as the successful bidder for the project. The Project involves the design, construction, ownership, operation and maintenance of a 100MW gas-fired CCGT power plant on a build, own, operate and transfer basis (“BOOT”). In accordance to the PPA to be executed with SESB, the project shall have a concession term of 21 years effective from the COD of 1st March 2026.
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