IN recent years, Tenaga Nasional Berhad is proud to have contributed to the environmental agenda – enabling energy transition as well as uplifting society.
The element of sustainability has been embodied in the electric utility company’s mission statement: “Together we brighten lives through innovative and sustainable solutions towards a better world.”
This is a clear testament of TNB’s quest and strategic direction to enhance its sustainability standings.
Sustainability Pathway 2050
TNB’s Sustainability Pathway 2050 reflects the company’s aspiration to achieve net zero emissions by 2050.
This objective is underpinned by a commitment to reduce 35% of its emissions intensity as well as 50% of its coal generation capacity by 2035.
TNB had earlier committed to no longer investing in greenfield coal plants after Jimah East Power which was commissioned in 2019, while honouring the power purchase agreement (PPA) of existing plants.
At the core of this pathway is future proofing of TNB’s business, as it is critical to balance this transition with the company’s financial sustainability and ensuring that shareholder value continues to be well-protected.
TNB plans to expand its renewables portfolio, and to date, has 3576.46MW domestic and international renewable energy (RE) capacity and is targeting to have 8,300MW by 2025.
In Peninsular Malaysia, TNB is developing the Nenggiri hydroelectric dam in Gua Musang, Kelantan.
Aside from supplying 300MW of green energy and contributing to flood management, the main reservoir will supply clean water that can be used for irrigation, while creating new employment and economic opportunities.
TNB also secured a new 50MW large scale solar (LSS) plant at Kuala Muda, Kedah, which is scheduled to commence operations at the end of 2023.
Expanding these opportunities beyond Malaysian shores, recently TNB’s international subsidiary Vantage RE Ltd acquired a 49% stake in Blyth Offshore Demonstrator Ltd (BODL), an offshore wind farm company in the UK, from EDF Renewables (EDFR), with installed capacity of 41.5MW and further development rights of up to 58.4MW.
This is TNB’s first foray into off-shore wind assets with a strong partner, building on TNB’s technological expertise.
The focus of TNB’s international business will be to further grow its overall RE portfolio and serve as the pathfinder for green technologies which it can eventually adopt in Malaysia.
“As we move to adoption of new technologies, it is important to be prudent and find the right timing on green tech investments, carbon capture, etc, to ensure economic feasibility,” TNB said in a statement.
Under the Incentive-Based Regulatory framework, TNB has planned to invest RM6.9bil a year from 2022 to 2024 to develop the grid as one of the key enablers of energy transition. This is with the aim of becoming a smart utility with a 85% score on the Smart Grid Index (SGI).
The adoption of new technologies such as the energy storage system to enhance grid’s flexibility and address the intermittency issue in RE is one of the initiatives that TNB is holistically looking at.
As part of helping customers to lead a more sustainable lifestyle, TNB’s retail business subsidiaries will be focused on “beyond electricity” solutions such as rooftop solar solutions, energy audits, and digital marketplace for renewable energy certificates.
By doing so, TNB is empowering consumers to have the choice to opt for renewable energy, through offering rooftop solar solutions from TNB subsidiary GSPARX Sdn Bhd and the Green Electricity Tariff (GET) programme which is a government initiative backed by mREC.
The response has been encouraging. By early 2022, GSPARX with its zero upfront cost option has helped TNB customers to install a total of 120MW of rooftop solar while the GET annual quota of 4,500,000MWh has been fully subscribed.
GSPARX is also collaborating with the Langkawi Development Authority (LADA) to reduce its carbon emissions through the installation of a 373.86kWp solar photovoltaic (PV) system at the Dermaga Tanjung Lembung Complex.
“We are also increasingly interacting with our customers digitally, whereby TNB now has more than 5.7 million myTNB app users.
“In tandem, we have rolled out more than 1.5 million smart meters to help consumers to better manage their energy consumption and implement energy efficiency initiatives.
“We recently also launched the TNBtemujanji online appointment booking for TNB services at the nearest Kedai Tenaga Outlet, in view of customers’ convenience and in supporting the new normal post Covid-19 pandemic,” said TNB.
Support for government’s climate change agenda
Malaysia recently declared its target of becoming a carbon-neutral nation by as early as 2050.
This reinforces Malaysia’s Nationally Determined Contributions (NDCs) to reduce greenhouse gas emissions intensity by 45% by 2030 relative to 2005 levels.
“TNB’s Sustainability Pathway signifies our commitment to the nation’s RE plan to increase the share of Malaysia’s RE capacity to 31% by 2025 and 40% by 2035.
“Sustainability is a long-term journey and we believe that collaboration and the concerted effort among governments, regulators, industry players and consumers are key to this goal.”