Malaysia's reNIKOLA seeks up to $438 mln for renewable energy projects - Reuters
Malaysia's reNIKOLA seeks up to $438 mln for renewable energy projects | Reuters
Malaysia's reNIKOLA seeks up to $438 mln for renewable energy projects
SINGAPORE, July 26 (Reuters) - Malaysian renewable energy company reNIKOLA Holdings is seeking to raise up to 2 billion ringgit ($438.4 million) over the next three years to fund its pipeline of projects including solar in Southeast Asia, its managing director told Reuters.
Boumhidi Adel, reNIKOLA's managing director, said the Kuala Lumpur-headquartered company will be issuing a 390 million ringgit Islamic bond or sukuk in August, which he said will be the first sukuk to be climate bonds certified.
Certified climate bonds are bonds whose assets and projects contribute to a low-emission economy.
The company, which is 45%-owned by Thailand's B.Grimm Power (BGRIM.BK), is also looking to complete a reverse takeover of a Malaysian shell company, Pimpinan Ehsan (PIMP.KL), by the first quarter of 2024, Adel said.
"That listing exercise is expected to raise additional equity to the group, which will be used for development of more renewable projects," he added.
ReNIKOLA is looking to grow its renewable projects under operation and under development to 1 gigawatt-peak (GWp) in the next 3 years from its existing 178 megawatt peak (MWp) plants in operation now, Adel said.
"Our predominant focus is Malaysia but we are also exploring projects in ASEAN and South Asia," he said, adding that the company is also eyeing other forms of renewable energy such as biogas and green hydrogen besides solar.
Uptake of renewable power is rising quickly in South and Southeast Asia as their booming economies grapple with power cuts due to a weak power grid and climate change that is increasing demand for air conditioning and focusing attention on the need for green power.
The Paris-based International Energy Agency in May predicted investment in clean energy globally would extend its lead over spending on fossil fuels this year.
($1 = 4.5620 ringgit)
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Related Knowledge Center: ENERGY BASICS: hydropower
Hydropower — electricity generated by turbines capturing energy from moving water — was for many years the primary contributor of renewable energy to the U.S. electricity grid. Its growth was rapid into the 1970s, and since then has offered a stable supply of power, while a declining share of all generation. For many years, hydropower was seen as clean energy and an unalloyed good, but a greater understanding of the impact of dams on ecosystems and wildlife has led to the removal of some dams. As of 2019, hydropower trails wind as a renewable source of power generation.