Serba Dinamik Annual Report 2018

SERBA DINAMIK HOLDINGS BERHAD ANNUAL REPORT 2018 95 POWER GENERATION We also operate within the power generation industry, especially in Malaysia and most recently in Laos. As such, our business is, to a certain degree, driven by developments in the power generation industry in these countries. Global Between 2018 and 2025, total installed power generating capacity of the Global market, Middle East, and Asia and Pacific regions are forecasted to grow at a CAGR of 0.6%, 0.5% and 1.1% respectively. In general, an increase in forecastedpower generation capacity can be translated into increase demand for power generation plant maintenance services, thus benefitting our business. Malaysia We are involved in the power generation industry inMalaysia through our acquisition of minority interest in several small hydropower plants in Sabah, as well as in a biogas power plant company. Therefore, any positive demand and outlook of the power generation industry, most particularly renewable energy in Malaysia would be in our favour. Electricity generation in Malaysia has been growing in line with consumption levels. Between 2014 and 2018, both electricity generation and consumption grew with a CAGR of 4.2% ( Figure 4-21 ). As at 2018, electricity generation stood at 162 Terawatt hours (TWh), exceeding total consumption by approximately 16 TWh. The power generation industry in Malaysia is actively developing to cope with growing electricity demand. According to the 11th Malaysia Plan, 97.6% of the population in Malaysia have access to electricity and the government is aiming to improve national electricity coverage to 99% by 2020. In order to meet the needs of the increasing electricity demand, the following are some of the major ongoing or upcoming projects in the power generation industry in Malaysia: 2,000 Megawatt (MW) Jimah East Power Plant in Port Dickson costing approximately RM12 billion; 2,242 MW Combined Cycle Gas Turbine (CCGT) power plant in Melaka costing approximately RM6.5 billion; 1,285MW Baleh Hydropower Plant in Sarawak that is expected to come online in 2026; 624 MW Balingian Coal-Fired Power Plant in Sarawak that is due for full commissioning in the third quarter of 2019; 842MW Tanjung Kidurong CCGT Project in Bintulu, Sarawak that is expected to be commissioned in 2020. Renewable Energy (RE) RE generation has also picked up pace in Malaysia over the years. Between 2014 and 2018, RE generated under the Feed-in Tariff (FiT) system recorded a CAGR of 16.9%, from 534-Gigawatt hour (GWh) in 2014 to 999 GWh in 2018 ( Figure 4-22 ). Figure 4-21: Electricity Generation and Consumption in Malaysia 2014 2015 2016 2017 2018 Electricity Generation Electricity Consumption 50 100 150 Terawatt Hours (TWh) 200 137 124 141 127 153 138 156 141 162 146