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KeTTHA eyes 30% renewable energy generation in eight years


  • Utilities
  • Thursday, 14 Sep 2017

Zaini says the Energy Commission is finalising the open bidding process for the second-phase solar energy projects involving 550 MW.

Zaini says the Energy Commission is finalising the open bidding process for the second-phase solar energy projects involving 550 MW.

BANTING: The Energy, Green Technology and Water Ministry (KeTTHA) has targeted to achieve its renewable energy (RE) generation of 30% nationwide within the next eight years.

Its secretary-general, Datuk Seri Zaini Ujang, said so far the country generated 22.5% or 6,500 megawatts (MW) of RE generation mix derived from solar, biomass, biogas and mini-hydro sources that were being used as an alternative to existing energy sources.

“The Government is very serious in adding energy-generation mix from RE sources and solar energy has been identified as the main contributor. Moreover, in the 11th Malaysia Plan, solar energy is targeted to generate 1,250 MW of energy,” he said.

“For this purpose, the Government had opened bids for the construction of 1,000 MW solar energy projects.

“A total of 450 MW for phase one was completed at the end of last year at several locations throughout the country,” he told reporters after officiating the ground-breaking ceremony of Tenaga Nasional Bhd ’s (TNB) solar scheme in Mukim Tanjung 12, Banting, on Thursday.

For the second phase involving 550 MW, Zaini said the Energy Commission was finalising the open bidding process for the projects and successful companies would be announced at year-end.

Zaini said of the dozens of companies taking part in the open tender process, TNB offered the most competitive bid price to install the 50 MW large-scale solar (LSS) project, while seven other companies awarded projects under the 30 MW to 50 MW quota category.

The RM348mil LSS project, which is the biggest in South-East Asia, is expected to be completed in November 2018 and the energy generated will be channeled through the TNB grid system covering an area of 10 kilometers, he added.

Built by TNB’s subsidiary TNB Sepang Solar Sdn Bhd on a 98ha site, the project was sealed through the solar power purchase agreement with the utility company in early March for a period of 21 years.

Through this project, the power generated will further increase TNB’s previous RE sources capacity from 23.3 MW to 73.2 MW.

Meanwhile, in a statement, TNB said the LSS project in Kuala Langat would be the first of its kind in the country and part of its non-regulated business.

The project, serves as a catalyst to TNB’s aspiration in developing RE projects in the country and the region.

TNB Sepang Solar secured financing and working capital requirement for the project at RM339mil from Affin Islamic Bank on July 19.

The LSS project would provide jobs to nearby residents during construction stage and later, educational exposure to the public, particularly students on solar technology and the operation of solar power projects.

TNB said it aspired to pursue an active role in supporting Malaysia’s RE generation target by leveraging on its competitiveness and strength, both locally and overseas.

Locally, the national utility corporation has formed joint ventures for a biomass power generation station in Jengka, Pahang with Felda; two biogas power stations in Layang-Layang, Johor and Bagan Datuk, Perak with Sime Darby; and two biogas power stations in Puchong and Jeram, Selangor with Worldwide Holdings.

As part of its international RE drive, TNB has for the past two years acquired major RE assets portfolios in solar, wind and hydro in the United Kingdom, Turkey and India with an accumulated generation capacity of almost 600 MW.

The JVs and foreign assets’ acquisitions reflect TNB’s commitment to grow its RE business to champion RE efforts in Malaysia and Asean. - Bernama
 

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