Categories: BusinessNews

TNB paves the way for RE through solar farms

The amount of RE generated at LSS Sepang and LSS Bukit Selambau can cover the energy demand of approximately 30,000 homes daily 

by AUFA MARDHIAH 

THE success of TNB Renewables Sdn Bhd (TRe), a wholly owned subsidiary of Tenaga Nasional Bhd (TNB), in developing renewable energy (RE) projects, is evidenced by its solar power plant’s Large Scale Solar Power Generation (LSS) capability. 

TNB’s solar farms at LSS Sepang in Kuala Langat and LSS Bukit Selambau in Kedah, have generated approximately 150,000 MWh or on average 3.7% higher than the Declared Annual Quantity (DAQ). 

The amount of RE generated at these two locations can cover the energy demand of approximately 30,000 homes daily. 

The LSS1 in Sepang produces a capacity of 50MW power and started operating on Nov 23, 2018, while LSS2 Bukit Selambau produces a capacity of 30MW power in an area of 50ha with the installation of 134,880 photovoltaic solar panels. 

LSS2 Bukit Selambau was completed in approximately 17 months, 114 days earlier than expected. 

It has generated approximately 61,000 MWh and can cover the energy demand of approximately 17,000 houses daily. 

On the other hand, the upcoming LSS4 Bukit Selam- bau will also produce a capacity of 50MW power in an area of 72.84ha with 131,487 bifacial photovoltaic solar panels. 

LSS4 Bukit Selambau started development in 2021 after TNB, through TRe won the bid to develop the solar site. 

It is expected to commercially operate on Dec 28 this year with an initial operation date expected on Oct 15, 2023. As of February 2023, the overall progress of the site is at 26.3%. 

Bukit Selambau’s uniqueness as a solar farm location is in terms of its proximity to the interconnection point, which is highlighted as a target area for solar developers. 

The operations of LSS Sepang and LSS Bukit Selambau have saved roughly 89,400 tonnes of CO2 per year, which is equivalent to the absorption of 2,106 trees or the driving of 22,245 petrol-powered vehicles in the same period. 

Mohd Yusrizal says TNB will continue discussions with ST and provide input on what it sees as an industry player and how improvements can be made (Source: tnbrenewables.com)

TRe MD Mohd Yusrizal Mohd Yusof said that both LSS in Sepang and Bukit Selambau have managed to generate more energy than expected. 

“When we did the feasibility study, we had set a target to be achieved, which was used to get financing and ensure returns could be obtained. 

“So, what has been proven from both of our facilities in Sepang and Bukit Selambau plants so far have exceeded the expected target, which can be due to the solar radiation being at a high level for all the years that we have monitored and as we expected, it is a cycle,” he said during a media visit to LSS Bukit Selambau on Feb 14. 

He added that although the sunlight at times may be at a slightly lower level, TNB is confident that within the 21-year period of this energy purchase agreement, TRe will be able to achieve a large amount of power generation as planned. 

“Nevertheless, as an RE developer, TNB is searching for suitable sites which are not only limited to the states in the North but also looking at the potential for development on the sea in the future,” he said. Explaining more on the LSS bidding, he said it was implemented through open bidding by the Energy Commission (ST) where each company was limited to one entry per round.

“The LSS project that we have is based on our participation in each round that was held, but we are less fortunate in the third round. We succeeded in the first, second and fourth rounds. 

“As an industry player and as a company supporting the government, we will champion these kinds of initiatives. At the same time, we will continue discussions with ST and provide input on what we see as an industry player and how improvements can be made,” Mohd Yusrizal said. 

ST provides a quota which is relatively cautious and small in comparison to what is practised in Vietnam. If solar development is done on a huge scale and carelessly, it will have an impact on the system’s stability. 

The reduction or rise of RE generation from solar cannot be totally regulated because it is dependent on the sun. 

TNB is also committed to achieving the country’s aspirations in increasing RE generation with installed capacity to 31% in 2025 and 40% in 2035

Therefore, spending or mitigation is required to ensure system stability remains at an acceptable level. 

“In order for it to be balanced, we need some regulations. I believe within five to 10 years we will see the cost of batteries decrease, new technology will be available and all these mitigation options will help to allow more solar (RE) to be connected to the system,” he added. 

Meanwhile, on the participation for LSS bidding in Malaysia, Mohd Yusrizal stated that the bidding carried out by the ST has continuous participation from players from abroad. 

“In terms of asset ownership, the power generation of overseas companies can only hold 49% ownership, so they need a local player to be with them in this development. 

“Therefore, we see that there are many joint ventures being worked on,” he said. 

He noted that there are many interested players from China, Korea and Europe. 

This is expected to grow in the future due to industrial players eager to obtain RE capacity. 

Separately, he also noted that TNB is considering the development of floating solar that optimises the use of calm water surfaces such as lakes and ponds, as well as on the surface of wavy water. 

Mohd Yusrizal said development on water needs to take into account the width of the covered area so that it does not cover the entire surface of the water to avoid adverse impacts on the ecosystem in the water. 

“During the research phase, we look at the maximum use of around 10% to 15% of the lake area for a start. Concurrently, we monitor to ensure that there are no negative impacts on the ecological system. 

“In terms of cost, currently, the development on water surfaces will cost more on average compared to normal development on land. However, we are evaluating the available options to ensure optimal use of the water surface. 

“In addition, we are also looking at development on land for second use such as agri solar as well as diversifying other activities that we can collaborate with local residents. For instance, in China and Taiwan, we see that there are fish farms in lakes that develop solar. 

“I expect that eventually, with the development of RE that will be increased, we will embark into floating solar very soon,” he said. 

TNB aims to reach 8,300MW of capacity by 2025 (including large hydro projects), as well as commit to a 35% reduction in carbon emission intensity by 2035 in an effort to achieve zero carbon by 2050, thus supporting the country’s aspirations towards carbon neutrality. 

TNB is also committed to achieving the country’s aspirations in increasing RE generation with installed capacity to 31% in 2025 and 40% in 2035. 

Since Reimagining TNB was launched in 2016, TNB has invested heavily in RE initiatives to contribute towards local low-carbon generation and other opportunities internationally, with environmental, social and governance-centric practices in business and decision-making. 


  • This article first appeared in The Malaysian Reserve weekly print edition
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