TNB eyes RM200mil annual income from investment - MIDA | Malaysian Investment Development Authority
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TNB eyes RM200mil annual income from investment

TNB eyes RM200mil annual income from investment

20 Oct 2022

Tenaga Nasional Bhd (TNB) will invest RM5.8bil to repower the Sungai Perak Power Stations (SSJ Sungai Perak) and expects RM200mil to be added annually to the group’s earnings before interest and tax under a new 40-year power purchase agreement (PPA).

TNB president and chief executive officer Datuk Baharin Din said 18 generating units at the six stations would be upgraded to the latest technology.

“This is among the initiatives to further strengthen TNB’s energy transition plan, with a renewable energy (RE) capacity target of 8,300 megawatts (MW) by 2025, in line with our aspiration to achieve net-zero emissions by 2050.

“This will reinforce TNB’s dominance in the hydro generation sector with a cumulative capacity of 2,661MW in supporting a carbon-neutral nation and the National Energy Policy announced by the government recently,” he said in a statement yesterday.

TNB had on Oct 14 announced that its wholly-owned subsidiary, TNB Power Generation Sdn Bhd (TNB Genco), had received approval from the Energy Commission to implement the Hydro Life Extension Programme for six stations in SSJ Sungai Perak commencing this year.

The project, with an investment of RM5.8bil, sets to repower SSJ Sungai Perak with a capacity of 650.75MW to support the country’s RE aspirations and to ensure its sustainable growth.Baharin said except for SJ Pergau, six stations in the same hydroelectric scheme, namely SJ Temengor, SJ Bersia, SJ Kenering, SJ Chenderoh and SJ Sungai Piah (upper and lower) will be operating under a new PPA for 40 years. The first unit will be in commercial operation in 2025, he said.

SSJ Sungai Perak’s upgrading works involve the latest technological requirements, including turbines and transformers to improve its efficiency and lifespan while strengthening TNB’s commitment to environment, social and corporate governance objectives.

TNB Genco managing director Datuk Nor Azman Mufti said SSJ Sungai Perak is continuing its role in flood mitigation, managing water reservoirs for agriculture and clean water supply as well as increasing employment opportunities and new business activities such as eco-tourism and aquaculture.

“In terms of green energy, SSJ Sungai Perak will reduce up to 464,000 carbon dioxide equivalent emissions, which is equivalent to carbon emitted by over 100,000 vehicles per annum,” he added. 

Source: Bernama