Kinergy unit's Perlis power plant funding commitment capped at RM479.4 million
The RM4.7 billion first phase has yet to receive its final notification or power purchase agreement, with external borrowing planned to cover 80 per cent of costs.
Kinergy Advancement Bhd (KAB) has put its subsidiary's maximum funding commitment for the Eentier Perlis power plant at RM479.4 million. The company told Bursa Malaysia that the commitment by wholly owned KAB Energy Holdings Sdn Bhd (KABEH) corresponds to 51 per cent of the RM940 million equity requirement.
KAB said Phase 1 would cost RM4.7 billion, with plans to borrow externally for 80 per cent of that amount. KABEH and B.Grimm Power would contribute the remaining 20 per cent through capital injections. Implementation of the final equity structure depends on the Energy Commission issuing a letter of notification.
Of the private placement proceeds, RM49.35 million is intended for the equity contribution. The proposal announced on September 25 covers up to 218.5 million new ordinary shares, equivalent to 10 per cent of KAB's issued shares, and aims to raise RM79.75 million. KABEH also plans to draw on internally generated cash, bank loans or both, backed by approximately RM155.8 million in cash and bank balances.
The planned combined cycle gas turbine development would use the Simpang Empat site previously occupied by a 650MW plant. That facility retired in March 2024 and has been decommissioned. Demolition and clearance work is underway.
Although an initial notification was obtained on December 2, 2025, technical and commercial negotiations with the Energy Commission continue. Phase 1, with capacity of 750 MW, still awaits its notification and power purchase agreement. KAB anticipates the notification during either the final quarter of 2026 or the opening quarter of 2027.
KAB said pre-development expenses could not be recovered if KABEH does not participate. In that case, allocated proceeds would go to ongoing renewable energy developments, including the Gerik and Slim River mini hydropower projects in Perak, together valued at RM147.66 million.
