PETALING JAYA: Tenaga Nasional Bhd (TNB) will invest RM5.8 billion to extend the life of six power stations in Perak, the power company said today.
It said the Sungai Perak power stations (SJ Sungai Perak) will be repowered with a capacity of 650.75 megawatts (MW) to support the country’s renewable energy (RE) plans and to ensure the sustainable growth of its business.
TNB president and CEO Baharin Din said this will bring TNB’s hydro generating capacity to 2,661MW.
The project will be undertaken by its wholly-owned subsidiary TNB Power Generation Sdn Bhd (TNB Genco).
In a statement issued today, TNB said its hydro life extension programme for the six stations has been given the go ahead by the energy commission.
Baharin said 18 generating units in all six stations will be equipped with the latest technology under the upgrading initiative.
Once completed, the operations in the six stations are expected to collectively contribute RM200 million annually to the group’s earnings before interest and tax (EBIT).
Baharin said this is among several initiatives to strengthen THB’s transition into renewable energy. The power company hopes to achieve a target of 8,300MW in RE production by 2025 in line with its aspiration to achieve zero emission by 2050.
Five of the six SJ Sungai Perak stations in Temengor, Bersia, Kenering, Chenderoh and Sungai Piah will be operating under a new power purchase agreement for 40 years.
The sixth station, in Pergau, will be in commercial operation from 2025.
Together, they account for 49% of the hydro capacity in Peninsular Malaysia.
TNB Genco managing director Nor Azman Mufti said the six power stations will continue to serve its other role in flood mitigation, managing water reservoirs for agriculture and ensuring clean water supply.
There are also opportunities for new business activities, such as eco-tourism and aquaculture, leading to increased employment opportunities, he added.