Malaysia Small Hydropower

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Financial Closure

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Procedures: Step-by-Step

  • To develop a small hydropower in Malaysia, project developers must first identify and select a suitable site for building a small hydropower plant.
  • Concurrently, permission for grid connection must be obtained.
  • Typically, project developers establish a special purpose company (SPC) to develop, construct and operate a small hydopower plant. The establishment of such company must be done from the outset.
  • Several permits must be obtained from the government and relevant authorities.
  • A provisional license must be obtained from the Energy Commission, allowing a project developer to generate electricity in Malaysia.
  • Financing must be secured from banks or financial institutions.
  • After the final closure, procurement and construction may then proceed.
  • After completing the construction of small hydropower plant, inspection and testing must then be conducted.
  • After COD, operations at the small hydropower may commence.