Jentayu receives approval for 162MW hydropower plant in Sabah
The post Jentayu receives approval for 162MW hydropower plant in Sabah appeared first on Jentayu Sustainables .
Source: Jentayu Sustainables Berhad · August 4, 2026 at 11:02 PM · AI-assisted report
SABAH, 5 AUGUST 2026 —
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KUALA LUMPUR: Jentayu Sustainables Bhd has received approval from the Energy Commission of Sabah for a 162 megawatt (MW) run-of-river hydropower plant in Sipitang, Sabah, marking a significant milestone in the company's foray into the renewable energy sector. The project, known as Project Oriole, is expected to generate approximately RM270 million in revenue per annum, contributing positively to the company's bottom line.
Market Impact
The approval is a culmination of Jentayu's strategic plan to diversify its principal activities to include renewable energy business, which received shareholder approval on December 18, 2020. The company had obtained the rights to develop the project in 2021, and has since spent RM82.3 million in development expenses, which will be capitalized as part of the equity requirements of the project. The project is expected to be funded via a debt-to-equity ratio of 80:20, although key terms of funding have yet to be finalized.
The 162MW hydropower plant will provide additional generation capacity for Sabah, supporting the region's growing energy needs. Run-of-river hydropower plants are a type of hydroelectric power plant that harnesses the energy of a river without creating a large reservoir, making them a more environmentally friendly option. Details on the project's timeline and construction plans are not yet available. However, the approval from the Energy Commission of Sabah is a significant step forward for the project, and Jentayu is expected to provide further updates in the coming months.
The approval of Project Oriole is expected to have a positive impact on the Malaysian market, particularly in the renewable energy sector. The project demonstrates the government's commitment to increasing the share of renewable energy in the country's energy mix, and is in line with the national target of achieving 20% of electricity generation from renewable sources by 2025. The project is also expected to contribute to the growth of Sabah's economy, creating jobs and stimulating local economic activity.
In terms of sector specifics, the approval of Project Oriole is a significant development for the renewable energy sector in Malaysia. The project is one of several large-scale renewable energy projects currently under development in the country, and demonstrates the growing interest in renewable energy among Malaysian companies. Jentayu Sustainables Bhd is a leading player in the sector, and the approval of Project Oriole is expected to further establish the company's position in the market. Details on the project's potential impact on the company's financial performance are not yet available, but the expected revenue of RM270 million per annum is likely to be a significant contributor to the company's bottom line.
Looking ahead, the outlook for Jentayu Sustainables Bhd and the renewable energy sector in Malaysia is positive. The company is expected to continue to play a leading role in the development of renewable energy projects in the country, and the approval of Project Oriole is a significant milestone in this effort. As the Malaysian government continues to support the growth of the renewable energy sector, companies like Jentayu are well-positioned to capitalize on this trend and drive growth in the sector. Further updates on the project's progress are expected in the coming months, and the company's shareholders will be watching closely as the project moves forward.
Related: Jentayu Sustainables Bhd · Energy Commission of Sabah · Sabah