TNB unit signs deal with Metrosphere to build station
PETALING JAYA: TNB Energy Services Sdn Bhd (TNBES), a wholly-owned subsidiary of Tenaga Nasional Berhad (TNB), has inked a shareholders’ agreement with Metrosphere Sdn Bhd to develop and build a 4MW mini hydropower station.
The station, which is located in Sungai Tersat, Kuala Berang, Terengganu, is expected to be completed by the end of 2019.
Following the completion of the hydropower station, TNB’s total small hydropower installed capacity will be raised from 17.96MW to 21.96MW. Both companies will form a joint venture company, Syarikat Metrosphere Hydro Tersat Sdn Bhd, with TNBES holding a 49% stake while Metrosphere shall hold the remaining 51%.
To be operated under a 21-year Feed in Tariff (FiT) scheme at RM0.25kWh, the station is expected to generate 25GWh of electricity per annum with an expected revenue of RM5mil per year.
The joint venture company plans to seek further potential sites for small hydropower development in Malaysia, subject to obtaining a favourable FiT scheme.
TNBES specialises in the provision of green energy solutions and services for the development, consultancy, operation, and maintenance of Renewable Energy projects, while Metrosphere is an investment holding company with a particular interest in Renewable Energy projects.