Serba Dinamik Annual Report 2018

96 ANNUAL REPORT 2018 SERBA DINAMIK HOLDINGS BERHAD Figure 4-22: Renewable Energy Generation in Malaysia Figure 4-23: Malaysia’s Renewable Energy Generation Mix in 2018 In 2018, solar power generation was the largest amongst other renewable energy generation in Malaysia. Solar power has been growing at a fast pace with a CAGR of 25.9% between 2014 and 2018, mainly due to its shorter construction period and low operational challenges. Biogas power generation has also been picking up pace in recent years surpassing biomass power generation in 2018. In 2018, biogas was the second highest contributor to Malaysia’s RE generation mix ( Figure 4-23 ). As of 2016, RE constitutes 2% of Malaysia’s total energy generation mix. The government aims to increase the RE portion to 20% by 2025. To achieve this target, the government introduced the Large Scale Solar (LSS) programme in 2016. This programme involves awarding contracts to private companies to build, own and operate LSS power plants in Peninsular Malaysia and Sabah. Thus far, two project cycles with total installed capacity of 958MW has been initiated. The third cycle of the scheme (LSS3) will commenced open tender in 2019 with total project worth RM2 billion. Laos Recently, we were involved in the power generation industry in Laos through an agreement to acquire a minority stake in several hydropower plant projects in Houaphan, Laos. As a result, any positive demand and outlook of the power generation industry in Laos may augur well for our Group. Power generation installed capacity in Laos grew by a CAGR of 21.0% between 2012 and 2016 ( Figure 4-24 ). In 2015, installed power generation capacity more than doubled with the commissioning of the Hongsa power plant, the country’s first coal-fired power plant. However, all of the power plant’s electricity is for export to Thailand. *preliminary data; (Source: Sustainable Energy Development Authority Malaysia, SEDA) Solar PV = Solar Photovoltaic; (Source: SEDA) P OW E R G E N E R AT I O N 2014 2015 2016 2017 2018* 534 588 642 985 1,000 Small Hydro (CAGR : -0.8%) Biogas (CAGR : 47.1%) Biomass (CAGR : -0.1%) Solar PV (CAGR : 25.9%) 200 400 600 800 1000 1200 Terawat Hours (TWh) Malaysia’s Renewable Energy Mix in 2018 Biomass 23% Biogas 24% Solar PV 46% Small Hydro 7%