Malaysia’s TNB eyeing Mindanao power plants repair and maintenance

TNB Repair and Maintenance Sdn. Bhd. (TNB-Remaco), a wholly owned subsidiary of Malaysia's largest energy company Tenaga Nasional Berhad (TNB), is securing the power plant repair and maintenance service contract of Mindanao power plants.

In a statement, Embassy of Malaysia Trade Office (MATRADE Manila) Commissioner Nyaee Ayup said TNB has been in discussion with power plant operators in Mindanao.

TNB Remaco business development and marketing Region II head Mohamad Izharudin Ahmad Wahiddin confirmed their interest citing the economic growth in Mindanao.

“We’re looking at the possibility of servicing power plants and other related energy industries. We’re looking at opportunities of upgrading and rehabilitating power plants to increase power supply in this region,” Wahiddin said.

He said they are keen on servicing Mindanao, as they see increased demand for electricity in this region due to strong economic growth.

“If the economic growth is at 5 percent, then the electricity demand is also growing at the same level or slightly higher. The electricity demand grows at the same level as the economy. In developing country, it must have a 30 percent additional capacity that will serve as buffer for any power interruptions,” he explained.

Citing the MIDF Amanah Investment Bank Economic Research, Ayup said Mindanao has huge investment potentials ready to be unleashed, however the ongoing energy crisis seems to dim its prospects.

“The crisis was triggered by the dry season which caused power supply from the hydro dams to fall and that coincided with the shutdown of several coal plants due to some defects. Because of the crisis, supply fell short of demand by about 13 percent,” the MIDF research showed.

With the El Nino expected in December, Mindanao will be largely affected because of its dependence on hydroelectric power plants. Mindanaoans will also have to bear the power interruptions as a result of scheduled shutdown of natural gas plants for maintenance.

Mindanao sources 50 percent of its energy supply from hydro, 32.6 percent from oil-based and 10.9 percent from coal.

He said TNB Remaco with parent company, controls 75 to 85 percent of the service side and they are also involved in other independent power produce (IPP) projects in Malaysia.

TNB is the largest electric utility in Malaysia and also the largest power company in Southeast Asia. TNB- Remaco has over 30 years of experience in O& M services for 8 geothermal power plants and 3 hydro power plants in Malaysia, with total capacity of 11,586 MW.

Outside Malaysia, TNB- Remaco has expanded its operation and maintenance services in Pakistan, Saudi Arabia and Kuwait. It also has wide track records in performing maintenance and repair of gas turbine components and project management of power sector in ASEAN and Middle East.