GENERATING ABILITY
TENAGA Nasional Bhd is mulling the disposal of its stake, either partial or whole, in Sabah Electricity Sdn Bhd. The utility firm says a decision will be made next year after further discussions on tariff reforms with the government.
KUALA LUMPUR: Tenaga Nasional Bhd (TNB) will continue to invest in and bid for renewable energy projects locally and abroad as part of its long-term strategy.
The company said it would focus on solar and wind projects next year.
“The investments would be based on TNB’s guidelines, which would probably be a bit conservative. Yet, it would be strategic in terms of yield, not exceeding the optimum gearing level of 55 per cent.
“However, until 2025, conventional power will still be the major contributor due to its stability and reliability, compared with renewable energy,” he said after TNB’s annual general meeting yesterday.
Azman said TNB was open to many markets but had a strict criteria to ensure the right sort of returns.
“However, due to the intermittent nature of renewable energy, our investments have to be backed by conventional energy.
“Until the time when we can see a more stable renewable energy production, we are investing RM10.5 billion in transmission, generation and renewable energy next year.”
TNB recently received a letter of acceptance for a large-scale solar (LSS) project in the second round of the bidding exercise.
The 30-megawat (MW) LSS photovoltaic (PV) plant, to be built in Bukit Selambau, Kedah, is TNB’s second LSS project after its 50MW LSS project in Kuala Langat, Selangor, which is under construction.
TNB has also completed the acquisition of a 50 per cent stake in Vortex Solar Investments Sarl, which has a 365MW solar PV portfolio in the United Kingdom through Vortex Solar UK Ltd.
“We have also made bids for another large solar PV plant in the Middle East and are expecting the outcome early next year.”
TNB chairman Tan Sri Leo Moggie said TNB was working closely with the government to deliver Malaysia’s renewable energy portfolio through investments in solar, wind, biomass, biogas and minihydro projects.
“This will be fortified by our capabilities and experience in the renewable energy space in Malaysia.” he said.
TNB’s capacity continues to grow, with the commissioning of new thermal and solar plants. The outlook for renewable energy remains bright, supported by LSS capacity bidding and net energy metering schemes. Zarina Zakariah