TNB in JV to build hydropower station in Terengganu

At the signing of a shareholders’ agreement between TNB Energy Services Sdn Bhd (TNBES) and Metrosphere to develop a mini hydropower station in Terengganu, Metrosphere chairman Datuk Andri Aidham Ahmad Badri (front, left) exchanges documents with TNBES managing director Dr Ahmad Jaafar Abd Hamid, witnessed by TNB president and CEO Datuk Seri Azman Mohd (back, left) and TNB chairman Tan Sri Leo Moggie.

KUALA LUMPUR: Tenaga Nasional Bhd (TNB) will jointly develop a 4MW mini hydropower station in Terengganu with Syarikat Metrosphere Hydro Tersat Sdn Bhd.

In a statement, TNB said its unit TNB Energy Services Sdn Bhd had signed a shareholders’ agreement with Metrosphere to develop and build the station in Sungai Tersat, Kuala Berang, on a joint venture (JV) basis.

TNBES will hold a 49% stake in the JV company, Syarikat Metrosphere Hydro Tersat Sdn Bhd, while Metrosphere will hold the rest.

Expected to be completed by end 2019, the small hydropower station will raise TNB’s small hydropower installed capacity from 17.96MW to 21.96MW.

The station will be operated under a 21-year feed in tariff (FiT) scheme at RM0.25kWh and is expected to generate 25GWh of electricity per annum for an expected revenue of RM5mil per year.

The JV company plans to seek further potential sites for small hydropower development in Malaysia, subject to obtaining a favourable FiT scheme.