Four IPPs switched off

  • Nation
  • Friday, 26 Oct 2018

KUALA LUMPUR: The termination of four Independent Power Producers (IPPs) will save the government and consumers RM1.26bil in electricity tariffs said Energy, Science, Technology, Environment and Climate Change Minister Yeo Bee Yin.

“If we had gone ahead with the project, it would have increased our capacity margin above what is required.

“This would then increase our capacity payments which would result in higher electricity bills in return,” she said when answering a question raised by Wong Kah Woh (PH-Ipoh Timur) during the Minister’s Question Time.

Yeo assured lawmakers that the termination would not affect the nation’s electricity supply since the national electricity reserve was still at an optimum level of 32%.

She also said the Pakatan Harapan government would not suffer financial consequences due to the termination of the four projects.

“The IPPs have breached the terms and conditions in the offer letter,” she said.

The four IPPs are Malakoff Corporation Bhd and Tenaga Nasional Bhd’s (TNB) 700 MW Gas Power Plant in Kapar, Selangor; Aman Majestic Sdn Bhd and TNB Gas Power Plant 1,400 MW Gas Power Plant in Paka, Terengganu; Sabah Development Energy Sdn Bhd and SM Hydro Energy Sdn Bhd 300 MW Gas Power Plant in Sandakan, Sabah; and Edra Power Holdings Sdn Bhd 400 MW solar power project.

She noted that the projects were awarded through direct negotiations, a practice the Pakatan government had done away with.

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