TNB revises RE target to 8,300MW by 2025

Current total RE capacity currently stands at 3,390MW, comprises 2,724MW from domestic assets and 666MW from international assets


TENAGA Nasional Bhd (TNB) has revised its renewable-energy (RE) capacity target to 8,300MW by 2025 from 1,700MW previously.

Its total RE capacity currently stands at 3,390MW — including large hydros — comprises 2,724MW from domestic assets and 666MW from international assets.

The international assets include about 400MW in the UK and the rest is in Turkey (wind and hydro) and India (solar).

The utility company aspires to ensure that revenue from coal generation plants does not exceed 25%.

It had also pledged to no longer invest in greenfield coal plants, with Jimah East Power which was commissioned in 2019, slated to be the last greenfield coal plant for TNB.

For the third quarter ended Sept 30, 2020 (3Q20), TNB’s earnings decreased 15.83% year-on-year (YoY) to RM1.01 billion or 17.73 sen per share from RM1.2 billion or 21.15 sen per share last year, due to lower revenue recorded together with a decline in finance income resulting from lower interest rates.

Its quarterly revenue fell 12.1% YoY to RM11.11 billion from RM12.64 billion in 3Q19, mainly attributed to the over-recovery position of the imbalance cost passthrough of RM1.48 billion compared to an under-recovery position of RM2 billion posted in the last corresponding period.

Its electricity sales also tumbled 6.5% from RM37.23 billion to RM34.81 billion, mainly due to the fall in select customer segments, including commercial and industrial, which were affected by the Covid-19 pandemic.

TNB president and CEO Datuk Seri Amir Hamzah Azizan said electricity demand and sales have improved in the 3Q compared to the previous quarter as most of the industrial and commercial sectors were allowed to run at full capacity under the Recovery Movement Control Order.

He added that the maximum demand for the quarter at 16,570GWh had almost reached 2019’s level of 16,894GWh.

“As a result, sales and collection are gradually improving. We will continuously monitor the trend as the country is currently facing the third wave of Covid-19,” he said in a statement yesterday.

For the cumulative nine-month period, the power utility’s net profit fell 38.66% YoY to RM2.38 billion, while revenue decreased 13.18% YoY to RM33.65 billion.

“For the full year, TNB expects the overall electricity consumption to drop between 6%-10% YoY,” Amir Hamzah said.

“Nevertheless, this will be cushioned by the earnings of our regulated revenue cap entities that are guaranteed at demand growth of 1.8%-2% as stipulated by the Incentive-Based Regulation guidelines in the second regulatory period,” he added.