Micro And Mini Hydro Solutions

Open sluice gates of a small dam

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Micro And Mini Hydro Solutions
Micro And Mini Hydro Solutions
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SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Renewable Resources and Alternative Energy
Alternative Energy
Business Model Description

Invest in companies offering turnkey solutions via B2B models to industrial and commercial premise owners or via B2G models for various applications including rural electrification and off-grid supply. Solutions include the design, installation and maintenance of micro and mini hydro systems. Revenue streams include equipment sales, selling the generated electricity to the grid, and operations, maintenance and consulting fees. Examples of companies active in this space are:

Amcorp Properties Berhad (AmProp) is an MNC engaged in real estate and renewable energy activities, including predominantly hydro. AmProp builds and operates mini hydro plants across Malaysia including a 6MW plant in Perting River, Bentong and two 10MW plants in Sungai Liang, Raub. AmProp's revenue increased by 25.4 per cent to USD 5.7 million for 1QFY22 from USD 4.52 million in the previous year (18).

Tenaga Nasional Berhad (TNB) is Malaysia's leading energy provider. A JV was formed between TNB and Metrosphere Hydro Tersat Sdn Bhd to build a 4MW mini hydro plant in Sungai Tersat, Terengganu. TNB is currently building 4 micro hydro plants in Pos Lenjang, Pahang. TNB's revenue was USD 15.9 billion in 2022, a 39 per cent increase from 2021 (19, 41).

Minetech Resources Berhad is a civil engineering company. It recently secured a RM 36.71m contract from Tesdec Hydropower Sdn Bhd to build a mini-hydro power plant in Besut, Terengganu, set for completion in 2027. In 2023, Minetech registered a 58.6 per cent revenue increase to USD 7.9 million for 3Q FY2023 compared with revenue of USD 4.96 million in 3Q FY2022 (26, 42).

Expected Impact

Increase renewable energy share in the national mix through small hydro solutions, and promote safer, self-sufficient and affordable production of energy, thereby contributing to a low-carbon economy.

How is this information gathered?
Updated: 18 Jun, 2023
Malaysia
Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
5% - 10% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Medium Term (5–10 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
> USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
> USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Affordable and Clean Energy (SDG 7) Responsible Consumption and Production (SDG 12) Climate Action (SDG 13)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Reduced Inequalities (SDG 10) Sustainable Cities and Communities (SDG 11)

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Sector Sources
  • 1) Economic Planning Unit (EPU). 2021. Malaysia Voluntary National Review (VNR) 2021. https://www.epu.gov.my/sites/default/files/2021-07/Malaysia_Voluntary_National_Review_%28VNR%29_2021.pdf. 2) Ministry of Energy, Green Technology and Water. 2015. National Energy Efficiency Action Plan. https://policy.asiapacificenergy.org/sites/default/files/National%20Energy%20Efficiency%20Action%20Plan%20%28NEEAP%29%20.pdf. 3) SEDA. 2021. Malaysia Renewable Energy Roadmap, Pathway towards low carbon energy system. https://www.seda.gov.my/reportal/wp-content/uploads/2022/03/MyRER_webVer3.pdf. 4) Rohani Salleh et al. 2021. Women Empowerment and Work-Life Balance of Women Engineers in the Malaysian Energy Sector: A Conceptual Framework. https://www.researchgate.net/publication/356258636_Women_Empowerment_and_Work-Life_Balance_of_Women_Engineers_in_the_Malaysian_Energy_Sector_A_Conceptual_Framework. 5) Asian Development Bank. 2021. Climate Risk Country Profile: Malaysia 2021. https://www.adb.org/publications/climate-risk-country-profile-malaysia. 6) Bank Negara Malaysia (Central Bank). 2021. Climate Change and Principle-based Taxonomy. https://www.bnm.gov.my/documents/20124/938039/Climate+Change+and+Principle-based+Taxonomy.pdf. 7) Prime Minister’s Department of Economy, Economic Planning Unit. 2021. Twelfth Malaysia Plan (12MP) 2021-2025 : A Prosperous, Inclusive, Sustainable Malaysia. https://rmke12.epu.gov.my/en. 8) UNDP Malaysia Country Office. 2021. Issue Brief: Advancing Gender Equality in Malaysia. https://www.undp.org/malaysia/publications/issue-brief-advancing-gender-equality-malaysia. 9) The Edge Markets. 2022. Full Budget 2023 Speech. https://maa.theedgemarkets.com/article/full-budget-2023-speech. 10) The Law Reviews. 2021. The Energy Regulation and Markets Review: Malaysia. https://thelawreviews.co.uk/title/the-energy-regulation-and-markets-review/malaysia. 11) Ministry of Energy, Green Technology and Water. 2017. Green Technology Master Plan 2017-2030. https://www.pmo.gov.my/wp-content/uploads/2019/07/Green-Technology-Master-Plan-Malaysia-2017-2030.pdf. 12) IRENA. 2022. Energy Profile, Malaysia. https://www.irena.org/-/media/Files/IRENA/Agency/Statistics/Statistical_Profiles/Asia/Malaysia_Asia_RE_SP.pdf. 13) Economic Planning Unit, Prime Minister’s Department. 2022. National Energy Policy 2022-2040. https://www.epu.gov.my/sites/default/files/2022-09/National%20Energy%20Policy_2022_2040.pdf. 14) Azmi & Associates. 2020. Legal Updates on the Solar Energy Industry in Malaysia. https://www.legal500.com/developments/thought-leadership/legal-updates-on-the-solar-energy-industry-in-malaysia-2/. 15) GlobalData. 2023. Hydropower capacity in Malaysia and major projects. https://www.power-technology.com/data-insights/hydropower-in-malaysia/. 16) Mordorintelligence. 2023. MALAYSIA RENEWABLE ENERGY MARKET SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS (2023 - 2028). https://www.mordorintelligence.com/industry-reports/malaysia-renewable-energy-market. 17) The Sun Daily. 2022. Climate Change Putting National Rice Security at Risk - Minister. https://www.thesundaily.my/local/climate-change-putting-national-rice-security-at-risk-minister-BK8480113. 20) Government of Malaysia. 2022. Malaysia's Update of its Nationally Determined Contribution. https://unfccc.int/sites/default/files/NDC/2022-06/Malaysia%20NDC%20Updated%20Submission%20to%20UNFCCC%20July%202021%20final.pdf. https://unfccc.int/sites/default/files/resource/MALAYSIA_BUR3-UNFCCC_Submission.pdf. 27) DOSM. 2021. Newsletter DOSM/BPPAS/1.2021/SERIES 17 Renewable Energies. https://www.dosm.gov.my/v1/uploads/files/6_Newsletter/Newsletter%202021/DOSM_BPPAS_1-2021-Series-17.pdf.
IOA Sources
  • 21) Bursa Malaysia. 2022. Jaks Resources Bhd's Financial Result Disclosures 2012-2022. https://www.bursamalaysia.com/market_information/announcements/company_announcement. 22) The Edge Malaysia. 2022. G Capital to jointly develop mini-hydropower plants in Sabah, raise over RM3 bil for first 200 MW. https://www.theedgemarkets.com/article/g-capital-jointly-develop-minihydropower-plants-sabah-raise-over-rm3-bil-first-200-mw. 23) SEDA. Rules and Regulations. https://www.seda.gov.my/policies/rules-and-regulations/. 24) MGTC, 2023. Budget 2023: More funds, incentives for green tech to meet net zero target and sustainability agenda https://www.mgtc.gov.my/2023/02/budget-2023-more-funds-incentives-for-green-tech-to-meet-net-zero-target-and-sustainability-agenda/ 25) RHB Investment Bank Research. 2023. Malakoff Corp - Developing Three Hydropower Plants; Keep BUY. https://klse.i3investor.com/web/blog/detail/rhbinvest/2023-03-22-story-h-275290505-Malakoff_Corp_Developing_Three_Hydropower_Plants_Keep_BUY. 26) The Edge Malaysia. 2023. Minetech bags RM37.7m contract to build 3MW mini-hydro power plant in Terengganu. https://theedgemalaysia.com/node/651391 28) Our World in Data. 2021. Malaysia: CO2 Country Profile. https://ourworldindata.org/co2/country/malaysia. 20) Simply Wall St. 2023. TNB Full Year 2022 Earnings. https://uk.sports.yahoo.com/news/tenaga-nasional-berhad-full-2022-230857549.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAALLpvcLOgTcm_ujrWXROYGuBGlXHxY5fgRPBnNmLhmF3dVCIWpGjiNu0qiG9Tuo_Z25TjO_wCxN-Pqynpy2EfZ2HUAs8C1MvLRaD2t6IXg1AwE6ZplpsxP49H9G3e_hsoiGvp3mdYwhr_4zPPHkeQKS1MH8rW6v-9b1eoQfghKJv. 30) Statista. 2017. Material footprint per capita in Malaysia from 2005 to 2017. https://www.statista.com/statistics/687338/malaysia-material-footprint-per-capita/. 31) Ministry of Women, Family and Community Development. 2021. Statistics on Women, Family and Community. https://www.kpwkm.gov.my/kpwkm/uploads/files/Penerbitan/Buku%20Perangkaan/e-book%E2%80%A2KPWKM%202020-2021%20291122.pdf.d=L0pheU43NWJwRWVSZklWdzQ4TlhUUT09. 32) World Bank. 2022. Malaysia Economic Monitor - Catching Up : Inclusive Recovery Growth for Lagging States. https://openknowledge.worldbank.org/handle/10986/37531. 33) UN Department of Economic and Social Affairs. 2022. SDG Indicators Database. https://unstats.un.org/sdgs/dataportal/database. 34) Free Malaysia Today. 2022. Government Giving more attention to renewable energy says Prime Minister. https://www.freemalaysiatoday.com/category/nation/2022/08/29/govt-giving-more-attention-to-renewable-energy-says-pm/. 35) IsBD. 2019. Country Gender Profile: Malaysia. https://www.isdb.org/women-youth/country-gender-profile-malaysia. 36) Government of Malaysia. 2011. Law of Malaysia, Act 725, Renewable Energy Act 2011. https://policy.asiapacificenergy.org/sites/default/files/RENEWABLE%20ENERGY%20ACT%202011%20%28ACT%20725%29.pdf. 38) Darwin Werthessen. 2014. Environmental Considerations of Small-Scale Hydroelectric Power Plants in Himachal Pradesh, India. https://vc.bridgew.edu/cgi/viewcontent.cgi?article=1297&context=undergrad_rev. 39) World Bank. 2008. Resettlement Plan, Can Ho Small Hydro Power Project. https://documents1.worldbank.org/curated/en/824901468174273670/pdf/RP7550v30P1032380Box0334116B.pdf. 40) Energy Watch. 2022. Establishing Power in Rural Areas Using Mini Grids. https://www.energywatch.com.my/blog/2022/10/04/establishing-power-in-rural-areas-using-mini-grids/. 18) The Edge Malaysia. 2023. Azman Hashim to take Amcorp Properties private at 90 sen per share. https://theedgemalaysia.com/article/azman-hashim-take-amcorp-properties-private-90-sen-share 19) The Star. 2017. TNB in JV to build hydropower station in Terengganu. https://www.thestar.com.my/business/business-news/2017/11/17/tnb-in-jv-to-build-hydropower-station-in-terengganu 41) TNBES. 2023. Tersat Mini Hydro. https://www.tnbes.com.my/portfolio/tersat-mini-hydro/ 42) ACN Newswire. 2023. Minetech Posts 58% Gain in 3Q Revenue to RM36 Million. https://www.acnnewswire.com/press-release/english/81424/minetech-posts-58-gain-in-3q-revenue-to-rm36-million 44) Ministry of Finance. 2023. Budget Speech. https://budget.mof.gov.my/pdf/belanjawan2023/ucapan/ub23-BI.pdf 45) MGTC,2022. Guideline for Green Technology Tax Incentive (GITA/GITE) https://www.myhijau.my/wp-content/uploads/2022/05/REC-GTGT-007-GUIDELINES-FOR-GREEN-TECHNOLOGY-TAX-INCENTIVE-GITAGITE.pdf 43) Government of Malaysia. Industry4WRD Policy. 2018. https://www.miti.gov.my/index.php/pages/view/4832 46) Government of Malaysia. Economic & Fiscal Outlook and Federal Government Revenue Estimates 2023. 2023. https://budget.mof.gov.my/pdf/belanjawan2023/ekonomi-fiskal/EUFORE2023_270223.pdf