PETALING JAYA: Malaysia, which has restarted the first phase of the International Atomic Energy Agency’s Milestones Approach framework to develop the institutional and commercial foundations of a nuclear power programme, may choose an ownership structure akin to the United Arab Emirates’ (UAE) Barakah nuclear power plant, says CIMB Research.
The research house said this would entail a government-linked entity such as Tenaga Nasional Bhd
retaining control, with an experienced supplier with a minority equity stake providing the construction and operational support.
It suggests a Barakah-style structure as more suitable given the country’s established government-linked entities.
“In our view, the final decision should focus on the allocation of liability for cost overruns, delays, operating underperformance, fuel and waste obligations, and long-term tariff risk,” it said.
“The ownership structure and execution model would depend on the reactor technology, technology partner, financing capacity, and the level of domestic control sought.
“The selected model will ultimately allocate construction, financing, operating, fuel supply, and decommissioning risks between Malaysia and the supplier,” it added.
Engineering, procurement, and construction and turnkey arrangements determine how the plant would be delivered, while joint venture and build-own-operate structures determine who owns, finances, and operates it.
For the Barakah plant, the UAE government’s Emirates Nuclear Energy Company (ENEC) has control and appointed the Korea South-East Power Co Ltd (KEPCO) to design, construct, and support the operation of four APR-1400 reactors.
ENEC retained 82% of the project’s commercial and operating companies, with KEPCO holding 18%.
“This preserved domestic control while aligning the supplier with long-term project performance and workforce development. All four units were commercially operational by September 2024,” it said.
The research house said the government has yet to choose the nuclear technology, with the options under evaluation carrying distinct risk-reward profiles.
It listed three options – conventional large-scale reactor, small modular reactor and floating nuclear power plant.
It said the owner-operator could be finalised under the second phase of the framework.
