TNB Doubles Capex To RM42.9 Bln To Back Energy Transition Efforts

KUALA LUMPUR, April 24 (Bernama) -- Tenaga Nasional Bhd (TNB) has more than doubled its budgeted capital expenditure (capex) to RM42.9 billion — comprising RM26.6 billion in base capex and RM16.3 billion in contingent capex — to support infrastructure development for Malaysia’s energy transition.

President and chief executive officer Datuk Megat Jalaluddin Megat Hassan said of the contingency capex, 64 per cent will be to upgrade infrastructure to support renewable energy (RE), the National Energy Transition Roadmap (NETR) and interconnection projects, while 30 per cent is to meet potential demand growth, and six per cent to maintain security of supply.

“Our top priority will be to accelerate decarbonisation. We plan to ramp up investments in solar (LSS5+, LSS6), battery storage (BESS), corporate renewable energy supply scheme (CRESS) and community-based renewables (CREAM).

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“We will also push forward on green hydrogen, carbon capture, electric mobility, and smart grid interconnections, all vital pieces of the ASEAN Power Grid vision,” he said in TNB’s 2024 annual report, filed with Bursa Malaysia today.

Energy Transition Efforts

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Megat Jalaluddin said that to date, TNB currently has 3.3 gigawatt (GW) of RE in Peninsular Malaysia and 1.1 GW abroad, mainly in the United Kingdom (UK) and Ireland.

“In 2024, we secured over 700 megawatt-peak (MWp) of solar projects in large solar capacity through LSS5 and LSSS.

“In addition, we achieved financial close for a 45MWp solar plant in Kulim under the Corporate Green Power Programme (CGPP),” he said.

Internationally, TNB operate a combined capacity of 927 megawatt (MW) comprising solar and wind assets in the UK, Ireland, and Australia, as well as has commenced construction of two new solar farms in the UK, totalling 102MWp.

Under the NETR, Megat Jalaluddin said TNB are making progress on three flagship projects, namely floating solar, centralised solar parks, and hydrogen projects. 

“On floating solar, there is a 2.5 gigawatt (GW) floating solar photovoltaic development across our hydro reservoirs.

“This includes a successful installation of 154kWp at Kenyir Dam. For centralised solar parks, we are developing five 150MWp solar parks across Malaysia with local partners.

“Currently, we have secured to supply 150MWp of green energy to Bridge Data Centres via Corporate Renewable Energy Supply Scheme (CRESS),” he said.

Megat Jalaluddin highlighted that TNB are also working with Petronas on green hydrogen using solar power from its Kenyir project, where a pilot system is currently in place with 500kWp solar panels and 1MWh battery storage.

He said TNB has secured a 400MWh battery energy storage system project in Sabah, which is notably the largest of its kind in ASEAN.

“Concurrently, we also received a 400MWh pilot project for the national grid. We have also ventured into the carbon capture and storage space to help reduce emissions from thermal plants,” he said.

Outlook

Going forward, he said the company is optimistic about 2025, with economic growth projected at 4.5 per cent–5.5 per cent, with electricity demand rising by up to 4.5 per cent.

“With the launch of the Regulatory Period 4 (RP4) and a promising 7.3 per cent return on investment, we are provided with strong confidence to scale up,” Megat Jalaluddin said.

-- BERNAMA