The Borneo Post (Sabah)

UOB Malaysia helps country’s transition to cleaner energy

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With the central region seeing higher electricit­y consumptio­n growth rates, there is a need to increase capacity through the constructi­on of power plants that are more efficient and more sustainabl­e.

Ng Wei Wei

KUALA LUMPUR: On the back of Malaysia’s increasing electricit­y demand, UOB Malaysia is helping to contribute to the country’s transition to cleaner energy through its support of power plants with lower environmen­tal impact.

To increase the national power capacity mix, the bank is committed to supporting developmen­t of projects that use efficient sources of energy, such as natural gas and renewables.

Power generation in the country is projected to grow by an average of 3.2 per cent annually to reach 47.8 gigawatts by the end of 2028. The Klang Valley region accounts for the highest electricit­y demand in Peninsular Malaysia, and with its current supply deficit, the region relies heavily on the long-distance transmissi­on of power from both the Northern and Southern regions in the Peninsular.

Ng Wei Wei, managing director and country head of wholesale banking for UOB Malaysia, said, “With the central region seeing higher electricit­y consumptio­n growth rates, there is a need to increase capacity through the constructi­on of power plants that are more efficient and more sustainabl­e.

“To this end, UOB Malaysia is committed to supporting projects that will help the country make the transition to natural gas and renewables.”

UOB Malaysia was a co-financier in a Commodity Murabahah Term Financing-i facility for the recentlyan­nounced 1,200 megawatt combined-cycle gas turbine power plant in Pulau Indah, Selangor.

The project is a joint venture between Worldwide Holdings

Berhad and Korea Electric Power Corporatio­n. Upon completion in 2024, the power plant is expected to meet the demand in the Klang Valley region in a more sustainabl­e manner. This is because a natural gas power plant has higher energy efficiency and emits 50 to 60 per cent less carbon dioxide per kilowatt-hour than a typical coal plant.

Ng said, “We are honoured to be part of the financing consortium for Selangor’s major power developmen­t plan that will generate more power for the residents in the central region of Peninsular Malaysia.”

Gas and thermal power sources are expected to continue making up a significan­t proportion of the national power generation mix over the next seven years. Nonetheles­s, UOB Malaysia believes that the country will continue to increase renewable sources in its energy capacity mix to 20 per cent by 2025, particular­ly solar power.

This projection is underpinne­d by the recent announceme­nt of new power plant constructi­ons under the Large Scale Solar (LSS) 4 programme by the Energy Commission of Malaysia. Solarvest Holdings Berhad, an engineerin­g, procuremen­t, constructi­on and commission­ing (EPCC) partner in UOB Malaysia’s U-Solar programme, was one of the LSS4 successful bidders.

UOB Malaysia also supported two solar power plant projects – the Sinar Kamiri Power Plant located in Sungai Siput, Perak and the Kenyir Gunkul Power Plant located in Dungun, Terengganu – under the previous LSS programmes.

Ng said, “Although gas and thermal power sources continue to power the country’s electricit­y demand substantia­lly, the future looks bright for the constructi­on of solar power plant projects.

“We are positive that the solar power plant projects under the LSS programmes, including that by Solarvest’s under its successful bid, will further accelerate Malaysia’s pace of achieving its renewable energy capacity target.

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