TNB Signs Renewable Energy Power Purchase Agreement (REPPA) With Bell Eco Power

04/06/2008

- Bell Eco Power to develop 2MW renewable energy plant in Batu Pahat - Plant to be first grid-connected project using Palm Oil Mill Effluent released methane gas as fuel Tenaga Nasional Berhad (TNB) has signed a Renewable Energy Power Purchase Agreement (REPPA) with Bell Eco Power to allow the latter to develop a small generation power plant. Under this REPPA agreement, Bell Eco Power will be developing the power plant with an installed capacity of 2MW in Batu Pahat, Johor. The plant will contribute about 1.7MW of electricity to TNB’s distribution system annually for a period of 21 years. The Batu Pahat Plant is going to be the first grid-connected project which uses methane gas from Palm Oil Mill Effluent (POME) as the source of energy. The REPPA agreement is also the first to be signed under the simplified version of the REPPA, known as Very Small Renewable Energy Power (VSREP), which is tailored for Renewable Energy plants under 2MW. The original version of the program, Small Renewable Energy Power (SREP) Program, was first initiated by the Special Committee on Renewable Energy (SCORE) almost eight years ago, with aims to promote and improve the use of Renewable Energy resources in electricity generation. This is the 11th SREP agreement signed in Peninsular Malaysia. Other SREP projects are found in in Selangor Darul Ehsan (Puchong, Semenyih and Hulu Langat); Negeri Sembilan (Jempol); Johor (Pasir Gudang); Pahang (Bentong); Kelantan (Kuala Krai), Negeri Sembilan (Port Dickson); and Perak (Pantai Remis). In his speech to address the guests at the signing ceremony, TNB Chairman, Tan Sri Leo Moggie, said that, ‘It is our hope that this collaboration will lead the way for other palm oil millers to embark on the Government’s SREP project and will encourage them to become active players in the renewable energy industry.’ He also added that, ‘We hope TNB’s contribution in entering into this long-term agreement with palm oil millers will help create an opportunity for palm oil-based industries to be more attractive and more sustainable.’ Earlier in March this year, TNB had signed a memorandum of understand with the Felda Palm Industries Sdn Bhd and Japan-based J-Power to develop a 10MW biomass plant in Jengka, Pahang. TNB’s efforts in promoting renewable energy is in response to the Government’s Five Fuel Diversification Policy. Under the 9th Malaysia Plan, the Government has set a national objective to have 350MW of the country’s power generated from renewable energy by 2010. Apart from representatives from TNB and Bell Eco Power’s top management, the signing ceremony also saw the Deputy Minister of Energy, Water and Communications, YB Joseph Salang Gundum as special guest of honour.