Southern Power Generation to boost national grid


SOUTHERN Power Generation Sdn Bhd (SPG) is prepared to supply 1,440MW of electrical power into the national grid from its two 720MW combined cycle gas turbine (CCGT) power plants.

SPG’s Unit 1 power plant has achieved its commercial operation date (COD) on Jan 1, while Unit 2 has added another 720MW to Peninsular Malaysia’s existing generating capacity, raising it to a total of 25,962MW.

“I am proud to share that SPG can now deliver its full generation capacity as its Unit 2 CCGT power plant has successfully achieved its COD at midnight on Feb 19,” TNB Power Generation Sdn Bhd MD Datuk Nor Azman Mufti said in a recent bourse filing.

Nor Azman said the two power plants, located in Pasir Gudang, Johor, are important in reinforcing the security of Peninsular Malaysia’s power supply.

Both plants are entirely operated and maintained by TNB Repair and Maintenance Sdn Bhd, a TNB Power Generation Sdn Bhd subsidiary. SPG supplies power to Tenaga Nasional Bhd (TNB) through a 21-year power purchase agreement, and its two plants use natural gas as their primary fuel.

The electricity generated from these plants is generated using 9HA.02 combustion turbine technology from General Electric Co (GE) that is expected to achieve combined cycle efficiency exceed- ing 60%. SPG is the first-ever power plant that commercially operates with this method.

Its turbine models are also GE’s latest and most efficient gas turbines.

Nor Azman said SPG’s successful completion was achieved with the collaborative efforts and support of stakeholders comprising regulators, authorities, projects partners, financiers and contractors.

“Together we have made this another significant accomplishment for TNB in delivering major projects for the country,” he said.

TNB and its wholly-owned subsidiary TNB Power Generation own a majority stake of 70% in SPG, while SIPP Energy Sdn Bhd holds the remaining 30%.

The national utility giant acquired an additional 19% interest in SPG from SIPP Energy for RM238 million in September last year.

SPG was incorporated on Aug 12, 2016, as a special-purpose vehicle for the development of a CCGT power plant in Pasir Gudang.

TNB shares last traded three sen or 0.3% higher at an intra-day high of RM9.88 last Friday, with 4.94 million shares changing hands. The company has a market valuation of RM56.36 billion.