The national utility company is identifying opportunities in emerging and developed markets such as lndia, Turkey and UK
Tenaga Nasional Bhd (TNB) recognises that continued growth will require the national utility company to expand its operations beyond Malaysia.
“Therefore, we are continuously identifying opportunities in emerging and developed markets such as lndia, Turkey and the UK. This has allowed us to grow our generation portfolio through strategic foreign acquisitions,” it noted in the TNB Integrated Annual Report 2017.
To date, the report noted that TNB had acquired a “significant” foreign portfolio of generation capacity of 4,888MW, of which 13% comprises renewable energy (RE) assets.
Its accumulated portfolio of international RE generation capacity amounts to approximately 600MW.
In early 2016, TNB had acquired 30% of Turkey-based GAMA Enerji AS, allowing the national utility company to have a foothold in an emerging market which is one of the fastest- growing energy markets in the world.
The move helped TNB diversify its RE capabilities with the inclusion of 117.5MW of wind generation capacity.
In 2017, TNB completed the acquisition of a 50% interest in Vortex Solar Investments Sarl (VSIS) as it seeks to expand its international presence and increase its RE assets.
VSIS operates a 365Mw solar photovoltaic (PV) portfolio in the UK.
“This investment marks our first foray into the European RE market, and increases our international RE portfolio,” the report added.
In order to deliver reliable energy at a fair tariff in Peninsular Malaysia, TNB utilises a diversified electricity generation of fuel mix.
Coal currently makes up the bulk of its fuel mix, based on the optimal generation capacity plant, established by the Planning and Implementation Committee for Electricity Supply and Tariff, helmed by Ministry of Energy, Green Technology and Water, the report said.
“TNB is committed towards the development of Malaysia’s RE by investing in infrastructure that allows more RE to be connected to the grid.
“Our efforts lend support to the government’s RE target, as stated in the 11th Malaysia Plan, to achieve 2,080MW of RE installed capacity by the year 2020. In response, we have set our own target, under “Reimagining TNB”, to achieve an RE capacity of 1,700MW by 2025,” it said.
Embracing Renewable Energy
As a major energy corporation, TNB is also playing an active role in the nation’s move towards embracing RE.
Together with the Sustainable Energy Development Authority, TNB administers and manages the implementation of the Feed-in-Tariff (FiT) programme, mandated under the RE Act 2011.
The programme pays feed-in approval holders a fixed price for their electricity as a pioneering incentive. It has led to the
commissioning of 7,367 FiT projects in Peninsular Malaysia, with an installed capacity of 379.4MW as of July 2017.
As the solar PV quota is reaching its limit for customers, it noted that the government has introduced the Net Energy Metering (NEM) programme.
Under this programme, customers can instal rooftop solar PV systems for their own electricity consumption and sell any excess electricity to TNB.
The NEM’s target is to achieve 500MW of installed capacity from 2016 to 2020 (450MW from Peninsular Malaysia and 50MW from Sabah).
This translates to an NEM quota of 90MW per year for Peninsular Malaysia in the period of 2016 to 2020.
TNB’s initiatives to promote the use of RE include a joint venture (JV) with Sime Darby Plantation Bhd to develop two biogas power plants located in Layang-Layang, Johor, and Bagan Datuk, Perak.
Both plants commenced commercial operations in December 2016 and January 2017 respectively.
TNB has also formed a JV with Felda Global Ventures Holdings Bhd to build a biomass power plant in Jengka, Pahang, which was commissioned in October 2016 with a generating capacity of 10MW.
It also manages 19 mini hydropower stations with a capacity of 9MW as a whole, located in several rivers in Peninsular Malaysia.
In March 2017, TNB won a competitive bid by the Energy Commission to develop its first large-scale solar farm, boasting a capacity of 50MW.
Construction work on the project, located on a 97ha piece of land in Mukim Tanjung 12, Kuala Langat, Selangor, began in July 2017.
It is being undertaken by its wholly owned subsidiary TNB Sepang Solar Sdn Bhd (TSS).
On March 2, 2017, TNB signed a 21-year solar power purchase agreement with TSS for it to supply electricity from the farm to the national grid.
“The project, to be operational by end-2018, is expected to cut carbon dioxide emissions by 64,000 tonnes per year. Besides the environmental benefit, this development will enrich the local community’s livelihood through new job opportunities, and the promotion of educational tourism and research into the region,” the report said.
On another front, TNB Research Sdn Bhd has conducted a research on the development of the country’s first floating solar project that is being undertaken in Sepang, Selangor, utilising the Malaysian Electricity Supply Industries Trust Account fund.
The project was launched in March 2015 with a capacity of 108kWp, covering 1,000 cu m on a 50ha lake in the Sungai Labu Water Treatment Plant.
“We support the transition towards a low-carbon economy, by promoting RE, embracing new technologies and empowering our customers. Having contributed to the nation’s development, we intend to further enhance our capabilities to become a world-class energy player.
“Our business over the years has been defined by our primary responsibility of ensuring a reliable supply of energy to Malaysians at all times, at a fair tariff,” the report said. — TMR