OVER 20 YEARS OF IPP EXPERIENCE AND CHARTING A COURSE TOWARD A GREENER FUTURE
HNG Capital’s Power Division, the forerunner of LEADER ENERGY PTE LTD, was founded over 20 years ago when its subsidiary, Cambodia Utilities Pte Ltd (“CUPL”), signed the first IPP concession agreement in Cambodia with the State utility Electricite du Cambodge (“EdC”). This “first mover” IPP concession required us to construct, own, operate and maintain a 37.1MW gross capacity diesel-fired power plant in the heart of the capital city Phnom Penh on a build-own-operate-transfer “BOOT” basis. In conjunction with the power project, we upgraded Phnom Penh’s transmission network capabilities to enable the distribution of power throughout the city.
The success of our first foray into the Cambodian power sector has propelled our growth in the years following. LEADER ENERGY has developed and acquired additional power and transmission projects in Cambodia as well as in Vietnam and Malaysia. Today we continue to fulfill our vision of building a balanced portfolio of generation technologies and geographical diversification in the high-growth markets of Southeast Asia in a safe, sustainable and environmentally responsible manner.
Diesel Engine Power Plant
The Group’s journey in the power generation business started more than 20 years ago when it secured the first Independent Power Producer (IPP) project in Cambodia in 1994 for an 18-year concession to build-own-operate-transfer “BOOT” a 37MW diesel engine power plant in Phnom Penh, Cambodia. As of today, ownership of the project has transferred smoothly back to the Government but the national utility still relies on us to operate and maintain it for peaking power in Phnom Penh.
Coal-Fired Power Plants
In 2009, we secured our second IPP project in Cambodia through competitive tender for a Build-Own-Operate “BOO” 100MW net capacity coal-fired power plant in SteungHav, Preah Sihanouk province with a 30-year PPA concession. The project was built to comply with World Bank-IFC environmental standards and was successfully commissioned in 2013. The project is known as Cambodian Energy Limited or “CEL”.
The success of CEL led the Cambodian Government to entrust us with implementation of a third IPP project, our second coal-fired plant, which the Cambodian Government required on a “fast track” basis. The project capacity is 135MW net with a 30-year PPA concession and it was awarded to us on a BOO basis in 2016. The project is known as Cambodian Energy Limited II “CEL2” and it is being constructed under an EPC turnkey contract with Toshiba Power Systems Co. on a site immediately adjacent to CEL. CEL2 is expected to achieve commercial operation by end-2019.
In 2010 we became the first private investor to be awarded a Build-Own-Operate-Transfer (“BOOT”) high-voltage transmission project in Cambodia. A 25-year Power Transmission Agreement was signed with EDC on January 20th, 2010 for the financing, construction, commissioning and O&M of the North Phnom Penh 230/115/22kV substation, the Kampong Cham 115/22kV substation, and the 110km double circuit 230kV overhead transmission line linking the two substations. The power project was successfully put into commercial operation in August 2013 and is operated and maintained by CTL.
In keeping with our vision to diversify our fuel mix, in 2016 LEADER ENERGY acquired a 70% controlling interest in a portfolio of 49.5MW of low-intensity, run-of-river, hydropower projects in Lao Cai Province, Vietnam. Leader Nam Tien Hydropower Joint Stock Company is comprised of five hydropower projects ranging from 4.5MW to 18MW that LEADER ENERGY owns and operates under Vietnam’s Avoided-Cost Tariff program. The projects produce clean, renewable energy with zero air emissions and no adverse impact on nearby inhabitants and villages.
Solar Photovoltaic Power Plant
In December 2016, we were awarded a 21-year PPA concession by public tender for a net 29MWac greenfield solar photovoltaic power plant located in Sungai Petani, Kedah, Malaysia under Malaysia’s Large-Scale-Solar “LSS1” auction program. The Leader Solar Energy “LSE” project was successfully completed and achieved commercial operation in October 2018.
Leveraging the solar power knowledge that we gained in LSS1, we won a second 21-year PPA concession for a net 20MWac greenfield solar photovoltaic power plant in Malaysia’s LSS2 auction. The project, Leader Solar Energy ll “LSE2” is also located in Kedah, Malaysia and is currently under construction with achievement of commercial operation expected in December 2019.
LEADER ENERGY will continue to expand its footprint in renewable energy projects across our core markets in Southeast Asia.