TNB to invest RM5.8bil to refurbish Sg Perak hydropower plant

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,TNB president and chief executive officer Datuk Ir. Baharin Din

KUALA LUMPUR: Tenaga Nasional Bhd (TNB) has received approval from the Energy Commission (EC) to implement the Hydro Life Extension Programme for six stations in Sungai Perak Power Stations (SSJ Sungai Perak) with an investment of RM5.8bil commencing this year.

In a filing with Bursa Malaysia, TNB said its wholly owned subsidiary, TNB Power Generation Sdn Bhd (TNB Genco) had received approval from EC.

The utility giant said it will repower SSJ Sungai Perak with a capacity of 650.75 megawatt (MW).

TNB president and chief executive officer Datuk Baharin Din said, 18 generating units at the six stations will be upgraded to the latest technology and SSJ Sungai Perak’s operations are expected to contribute RM200mil annually to the group’s earnings before interest and tax (EBIT).

"This is among the initiatives to further strengthen TNB's Energy Transition, with a renewable energy (RE) capacity target of 8,300MW by 2025, in line with our aspiration to achieve net zero emissions by 2050.

"This will reinforce TNB’s dominance in the hydro generation sector with a cumulative capacity of 2,661MW in supporting a carbon-neutral nation and the National Energy Policy announced by the government recently," he said.

Except for SJ Pergau, six stations in the same hydroelectric scheme namely SJ Temengor, SJ Bersia, SJ Kenering, SJ Chenderoh, and SJ Sungai Piah (Upper & Lower) will be operating under a new power purchase agreement (PPA) for 40 years. The first unit will be in commercial operation in 2025.