TNB gears up for energy transition with significant capex

TNB is leading three key large-scale renewable energey and clean technology initiatives under the NETR.

KUALA LUMPUR: Tenaga Nasional Bhd (TNB) is preparing for Regulatory Period 4 (RP4) 2025-2027 with significant capital expenditure (capex) to support Malaysia’s energy transition and projected growth in electricity demand

“We are ready to execute major initiatives under the National Energy Transition Roadmap (NETR), ensuring Malaysia achieves its energy-transition goals. With TNB leading the charge, we are confident in fostering a sustainable, resilient, and prosperous future for all,” TNB president and chief executive officer Datuk Megat Jalaluddin Megat Hassan said in a statement.

TNB is leading three key large-scale renewable energey and clean technology initiatives under the NETR: centralised large-scale solar (LSS) parks, hybrid hydro floating solar (HHFS) arrays, and hydrogen and ammonia co-firing projects.

According to the utility giant, the initiatives aim to deliver over 3,000 megawatts (MW) of renewable-energy capacity by 2040, with around 2,500MW from HHFS technology and an additional 500MW from five different LSS parks.

TNB plans to install HHFS arrays with up to 230MW capacity at the Temenggor and Chenderoh hydro plants by 2025, and the company is exploring a 100MW ground-mounted solar project in Perak.

Megat said TNB is committed to driving growth and net-zero targets with its energy-transition plan.

“By focusing on energy sources, energy vectors, and energy usage, we aim to provide clean energy, build transition networks, and promote dynamic solutions.”

In 2023, TNB’s revenue grew by 4.3% to RM53.07bil, thanks to a 3.8% increase in electricity demand in Peninsular Malaysia and Sabah.

“Our ability to meet rising energy needs effectively, along with an RM2.66bil dividend payout, with 66.6% of the dividend distributed to government-linked investment companies, underscores our commitment to shareholder value,” chairman Datuk Abdul Razak Abdul Majid said at TNB’s 34th AGM yesterday.

He noted that Malaysia’s electricity demand growth, an indicator of the country’s economic performance, showed a 3.8% year-on-year increase in Peninsular Malaysia and Sabah, compared with the previous year’s 6.1%.

“We are at the forefront of advancing these objectives through pivotal projects. These initiatives will increase renewable energy gradually, reinforcing our leadership in sustainable-energy,” Abdul Razak said.

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