43 Performance Revi ew Sect ion 02 Annual Report 2022 MANAGEMENT DI SCUSS ION & ANALYS I S Scheduled maintenance works on the gas turbine Exhibit 2: 289GW of RE potential in Malaysia Peninsular Malaysia Sarawak Sabah 0.2 GW 32.1 GW 99.4 GW 10.0 GW 0.6 GW 137.5 GW 162 MW 2.2 GW 1.7 GW 3.1 GW 0.5 GW 0.8 GW 67 MW 0.6 GW Total Malaysia Solar PV 269.0 GW Large Hydro 13.6 GW Bioenergy 3.6 GW Small Hydro 2.5 GW Geothermal 0.2 GW > Solar PV (includes ground mounted, rooftop and floating installation) > Large hydro (system size > 100 MW) > Bioenergy (includes agriculture animal and municipal & hazardous waste) > Small hydro (system size up to 100MW) > Geothermal Source: SEDA, MIDFR On the matter of the deferred tax appeal on the 7-Year Time Limitation of Investment Allowances, Ranhill had again submitted an appeal to the Ministry of Natural Resources, Environment and Climate Change (NRECC) to allow RPII to utilise its unutilised investment allowance up to the end of the concession period (FY2032) based on terms previously granted, thereby maintaining deferred tax assets of RM42.1 million. The Group is awaiting for a meeting with the Ministry to be scheduled in FY2023 and remains positive of a favourable outcome being reached from discussions. OUTLOOK AND PROSPECTS The focus, going forward is to develop Sabah’s energy generation capacity towards addressing the state’s existing low power capacity, especially in the eastern part of the state. In addition, the eastern part of the state, is also highly dependent on diesel based power plants. The insufficient energy generating capacity has contributed to Sabah having a comparatively high System Average Interruption Duration Index (“SAIDI”), which indicates frequent and protracted power supply disruptions. While efforts are focused on increasing energy generation capacity, the ongoing upgrading of the West-East transmission line will enable an additional 400 MWh of electricity power to be channelled from Sabah’s west coast to the east. The upgrades, once completed will enable IPPs including Ranhill to supply more energy to the grid, thus driving revenues going forward. This would also make it feasible to develop power plants either in the east or west of the state (Ranhill’s existing power plant operations are located in the latter). The project shall contribute positively to the Group’s financial performance from FY2026 onwards. Ranhill will finance its portion of investments in the consortium and project through internally generated funds as well as bank borrowings. The project further entrenches Ranhill’s position as the leading IPP in Sabah, with the additional 100MW of energy generation capacity (upon attaining COD in March 2026), bringing the Group’s total power producing capability in Sabah to 480MW. It also further strengthens the Group’s reputation as a leader in the construction, operations and maintenance of CCGT power plants in Malaysia and the region.
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