, Malaysia
295 view s

TNB eyes early retirement for coal plants to accelerate sustainability goals

It plans to retire 1400MW plants up to one year before the expiration of the PPAs.

Malaysia’s Tenaga Nasional Berhad (TNB) is planning to retire selected coal plants earlier than the expiration of their power purchase agreements in a bid to accelerate its sustainability goals to reach net-zero emissions by 2050.

In a statement, TNB said the coal retirement plans will help increase the enterprise value and transition the portfolio of the TNB Power Generation Sdn Bhd (GenCo).

“We hope to start with Kapar Energy Ventures (KEV), and are exploring the viability of retiring the 1400 MW plant up to a year ahead of its PPA expiration subject to shareholders’ agreement and approvals from the relevant authorities and regulators,”  said TNB President and CEO Dato’ Indera Ir. Baharin Din.

“As for repowering plants with new technology, we have recently received a Letter of Intent to allow the repowering of our 1400 MW gas-powered plant in Paka, which we intend to make hydrogen ready by 2029,” he said. 

TNB is also seeking collaboration with technology partners to provide technology that will help GenCo venture into cleaner sources, such as hydrogen.

Bahrain said they aim to capture by 2050 a “significant share” of around RM40b of the clean energy market which is estimated to reach between RM65b to RM80b.

“Through these deliberate steps to increase its enterprise value and sustainability position, we are also staying open to the possibility of an Initial Public Offering (IPO) of GenCo, should the opportunity come up,” Baharin said.

READ MORE: Malaysia’s TNB power station in Kenyir resumes operation

Aside from this, the company also plans to grow its renewable energy portfolio in its adjacent markets in Asia Pacific and Europe. It plans to install over 14 gigawatts (GW) of renewable energy by 2050 which can help avoid around 6.9 million total carbon dioxide per megawatt-hour.

The company also aims to continue investing in developing the Grid of the Future, and accelerate the adoption of electric vehicles (EV) to capture a potential RM1.3b market value by 2030. It will also invest RM90m to support the EV ecosystem in the span of three years.

Baharain said these efforts aim to boost the demand-side of the power sector by promoting EV adoption to reach 500,000 EVs on Malaysian roads by 2030.

The increasing need to address the impact of climate change propelled the company to accelerate its decarbonisation plans and reach its target of a 35% reduction in carbon emissions intensity and a 50% reduction of its coal generation capacity by 2035, he said.

Follow the link for more news on

Join Asian Power community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

India’s Rajasthan and Gujarat need policy reforms to fuel RE transition
Some steps they could take are implementing green tariffs and setting infrastructure funds.
Global clean energy tech market to hit $2t by 2035
This is fuelled by investments as countries aim to enhance energy security.The global clean energy technology market is projected to grow from $700b in 2023 to over $2t by 2035, nearing the scale of the crude oil market, according to the International Energy Agency (IEA).This growth is fuelled by significant investments in clean technology manufacturing as countries aim to enhance energy security, maintain economic competitiveness, and cut emissions. Investment is concentrated in regions with established positions in clean energy, particularly China, the European Union, the UK, and increasingly, India.Whilst the US, EU, and India have taken measures to support their clean energy sectors, China is expected to remain the world's manufacturing hub. By 2035, China's clean technology exports are forecasted to exceed $340b—comparable to projected oil export revenues from Saudi Arabia and the UAE.Southeast Asia, Latin America, and Africa contribute less than 5% of global cleantech production value, yet the IEA suggests that these areas still hold opportunities within the clean energy economy. Developing economies, for instance, could leverage competitive advantages to advance in the value chain beyond resource extraction.The IEA said Southeast Asia could become one of the most cost-effective regions for producing polysilicon and wafers for solar panels over the next decade.

Exclusives

Coal-dependent ASEAN told to scale up RE generation
A regional power grid could help governments in their renewable energy transition.
Indonesia told to tap communities in clean energy transition
Solar and wind power managed by villages could generate 96 million jobs over 25 years.
Indonesia to add 90 MW geothermal capacity
Three power plants in West and East Java and North Sumatra will start operating this year.