44 Performance Revi ew 02 Sect ion Ranhi ll Ut i l i t i es Berhad MANAGEMENT DI SCUSS ION & ANALYS I S Peninsular Malaysia’s SAIDI (Last update 30 June 2022) 56.65 51.49 49.29 54.49 48.22 48.13 44.95 45.25 44.03 2014 2017 2015 2018 2016 2019 2020 2021 2022 (annualised) Sabah’s SAIDI (Last update 30 June 2022) 777.26 379.26 311.01 240.9 287.87 205.31 189.44 332.14 393.32 Saidi (Minute/Customer Year) Saidi (Minute/Customer Year) 2014 2017 2015 2018 2016 2019 2020 2021 2022 (annualised) Given the Energy Sector’s proven track record for operational performance and its successful maiden LSS4 project, the Group is well positioned to continue expanding its footprint in Sabah as well as other locations locally and potentially abroad. This includes both CCGT based plant-ups as well as RE based projects and initiatives. In Sabah, Ranhill’s bid for the Tawau geothermal project supports the progressive decarbonisation of Sabah’s energy portfolio, while also meeting the state’s requirement to increase energy generation capacity. Also, with the expected increase in manufacturing based investments into Sabah such as SK Nexillis, Korea (copper component for batteries) and Kibing Group (M) Sdn Bhd (glass component for solar panels), the Group foresees increased non-domestic consumption demand which will augur well for RPI and RPII going forward. Ranhill is also considering participating in the Corporate Green Power Programme (“CGPP”). The intention is for Ranhill to build, own and operate a 29.9MW renewable energy (“RE”) facility to supply clean energy to partially power Ranhill SAJ’s water operations in Johor and thereby reduce carbon footprint. The Group will submit its proposal to the EC and we expect a positive response in FY2023. This is part of the decarbonisation strategy towards tapping solar for self-consumption by Ranhill SAJ. Under the CGPP, Corporates can directly purchase solar energy from asset owners via a virtual power purchase agreement (“VPPA”), or a Corporate Green Power Agreement (“CGPA”). Ranhill SAJ’s electricity costs alone amounts to RM157.4 million per annum. The addition of the ICPT adjustment further increases energy costs. While Ranhill SAJ consumed 355 GWh of electricity in 2022 and the CCGP model will only provide 62 GWh of electricity, this will enable Ranhill SAJ to partially meet its energy requirements with a cleaner and cheaper energy alternative over the long term. The model will support a partial reduction in energy costs of some RM30 million. It is also possible that Ranhill could leverage the CGGP model to build solar based energy generating facilities and to sell power produced to other corporates, especially those with energy intensive operations.
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