Flash TNB to increase hydroelectricity output by over 1,100 MW by 2020

Flash TNB to increase hydroelectricity output by over 1,100 MW by 2020
Business & Markets 2013
Written by theedgemalaysia.com
Friday, 28 June 2013 09:16

TNB to increase hydroelectricity output by over 1,100 MW by 2020

KUALA TERENGGANU (June 28): TENAGA NASIONAL BHD [] (TNB) will increase the total output capacity of its hydroelectric power plants to over 3,000 Megawatts (MW) by 2020, from the current 1,900-something MW.

Speaking to the media, TNB's Stesen Janaelektrik Sultan Mahmud (SJSM) Kenyir's general manager Mohd Aidee Hamidin said the group currently has identified five locations to build new hydroelectric plants in West Malaysia.

He said TNB plans to build those plants in Ulu Terengganu with a total capacity of 265 MW, Ulu Jerai, Pahang (378 MW), Tekai, Pahang (150 MW), and Chenderoh, Perak (12 MW).

Also recently being proposed is a hydroelectric plant in Ninggiri, Kelantan. Mohd Aidee said the plant's total output capacity could be about 400 MW.

"SJSM Kenyir will also undergo refurbishment. We intend to increase its capacity by 15% to 460 MW," Mohd Aidee revealed.

The plant consists of four turbine units, with the first unit commissioned in 1985. As each turbine has a lifespan of about 32 years, he said SJSM Kenyir is almost due for an overhaul.

The works will begin with one unit, beginning in 2016. No cost was given.

Beyond Malaysia, TNB's operations and management (O&M) subsidiary, TNB Remaco, is eyeing to penetrate African markets.

"We've been wanting to enter the continent as we know we could provide our expertise in those markets. But the political unrest in Egypt since last year has put our plans on hold," said the company's chief operating officer Haji Anuar Yusoff.

He also said said TNB Remaco is currently bidding for a contract for an O&M job for an Iraqi power plant.

While he did not want to disclose the contract's value, Anuar said the tender's result should be known in a couple months' time.

TNB Remaco targets for a pre-tax profit of RM44.2 million on revenue of RM630.4 million for its financial year ending August 31, 2013 (FY13). In two financial years, the company estimates its pre-tax profit will rise to RM78.2 million with revenue of RM722 million.