TNB to develop plant in Kalimantan

By RAHIMI YUNUS / Pic By TMR File

TENAGA Nasional Bhd (TNB) has signed a memorandum of understanding (MoU) with PT PLN to develop a 2x200MW coal-fired power plant in Kalimantan, Indonesia.

The partnership with Indonesia’s state-owned utility entails the supply and export of electricity from the proposed power plant to Sabah, through TNB’s 83%-owned Sabah Electricity Sdn Bhd. The MoU is for a two-year period.

“The project is in line with our global expansion to secure new overseas generation capacity and to meet the rising demand for electricity in Sabah,” TNB said in a press statement yesterday.

The project was mooted by Prime Minister Datuk Seri Mohd Najib Razak and Indonesian counterpart President Joko Widodo, during their bilateral meeting on the sidelines of the Indian Ocean Rim Association summit in Jakarta last March.

“The MoU is expected to be a win-win venture for both countries through the enhancement of bilateral cooperation and improvement in power supply stability for Sabah and Kalimantan,” TNB added.

Last month, TNB signed an MoU with Elia System Operator SA, a transmission operator for Belgium and Germany, to share best practices in capacity building.