KUALA LUMPUR: Tenaga Nasional Bhd
’s (TNB) wholly-owned subsidiary, TNB Power Generation Sdn Bhd (TNB Genco), together with Aurora Power Generation Sdn Bhd, has been selected as the successful bidder to develop a new 1,400MW combined cycle gas turbine power plant in Paka, Terengganu.
In a filing with Bursa Malaysia, TNB said the consortium received a letter of notification from the Energy Commission (EC) following a competitive bid conducted under the New Generation Capacity 2025–2029 programme for Peninsular Malaysia (Category 2).
The project involves the development of a new CCGT plant aimed at enhancing electricity supply stability and maintaining an optimal reserve margin in Peninsular Malaysia.
TNB said the consortium will incorporate a special purpose vehicle (SPV) to undertake the project.
“The construction works of the project are estimated to take three years. The SPV will sign the 15-year Power Purchase Agreement (PPA) with the off-taker, which is TNB,” it said.
TNB said the project is expected to be earnings accretive upon its scheduled commercial operation date.
“The project cost will be financed through a combination of debt and equity. Any debt to be raised will increase TNB’s consolidated gearing. However, it is not expected to have a significant material effect on TNB’s gearing position,” TNB said.
TNB added that the project will increase its generation market share and improve the overall efficiency of its generation asset portfolio, in line with its strategic aspiration to be a leading provider of sustainable energy solutions in Malaysia and internationally.
In a separate filing, TNB said TNB Genco received three letters of notification from the EC confirming its selection as the successful bidder under the Request for Proposal for New Generation Capacity in 2025 to 2029 for Peninsular Malaysia.
TNB said the letters relate to the extension of existing facilities under Category 1 of the competitive bid exercise.
The extensions cover Stesen Janakuasa Gelugor with a capacity of 310MW and Stesen Janakuasa Putrajaya with 249MW, both scheduled for commercial operation from Jan 1, 2027 until Dec 31, 2029.
Stesen Janakuasa Tuanku Ja’afar PD1, with a capacity of 703MW, is slated for commercial operation from Sept 1, 2028 until Dec 31, 2029.
