Energy transition is a global long-term effort requiring immediate action today for the sustainability of tomorrow. TNB takes a balanced approach with a long-term view in its Energy Transition programme, including by investing in diversified renewable technologies in stable and supportive markets, such as the Malaysian market.
Table 1: TNB Group Current and Forecast Renewable Energy Capacity (GW)
| Year | 2021 | Jun-2023 | 2025F |
|---|---|---|---|
| Domestic Capacity (GW) | 2.8 | 3.0 | 4.1 |
| International Capacity (GW) | 0.7 | 1.0 | 1.1 |
| Potential Capacity Growth (GW) | n/a | n/a | 3.0 |
| Total Capacity (GW) | 3.5 | 4.0 | 8.3 |
In August 2023, the Malaysian Government announced the National Energy Transition Roadmap (NETR) that aims to steer Malaysia’s shift from traditional fossil fuels-based economy to a high-value green economy. The shift towards cleaner energy would require electrification of heavily polluting sectors including transportation, representing a significant driving force for the electricity sector. Target for installed RE capacity is set to 70% by 2050, providing ample opportunities for TNB to expand its domestic RE portfolio. Ten flagship catalyst projects of the NETR were also launched, 3 of which are championed by TNB.
Flagship Project #1: Championing Green Capacity Growth through Hybrid Hydro-Solar Project (HHFS)
Development of ~2500 MW HHFS potential at TNB hydro dam reservoirs will increase RE generation close to 24- hour availability. The hydro plant acts as energy storage by conserving the water in the reservoir during peak hours and discharging it during non-peak, while providing quick response to the duck curve. Lower investment by utilising existing hydro infrastructure as compared to battery energy storage system (BESS) and solar PV. Potential scaling up for future green hydrogen feedstock in collaboration with other hydrogen producers as the green electron offtaker
Development of HHFS will be in 4 phases.
Table 2: Development of HHFS with estimated annual CO2 avoidance and equivalent carbon sequestration.
| Phase | Capacity (MW) | Projected COD | Estimated Annual Emission Avoidance (tCO2e)1 | Equivalent Carbon Sequestration (number of tree seedlings grown for 10 years)2 |
|---|---|---|---|---|
| 1 | 230 | 2025 | 408 thousand | 6 – 6.7 million |
| 2 | 470 | 2028 | 752 – 835 thousand | 12 – 13.8 million |
| 3 | 800 | 2035 | 1,280 – 1,421 thousand | 21 – 23.4 million |
| 4 | 924 | 2040 | 1,478 – 1,641 thousand | 24 – 27.1 million |
Phase 1 of the project will be developed by TNB Power Generation Sdn Bhd at Temengor and Chenderoh hydro reservoirs. Feasibility studies will also be conducted for Terengganu and Kelantan Schemes for the remaining phases of the project. Upon commissioning of all phases, the annual emission avoidance is estimated to be between 3.8 million – 4.3 million tCO2e.
Flagship Project #2: Collaboration with Small-Medium Enterprises through 5 x 100MW Solar Park
Centralised Large Scale Solar parks co-developed by TNB, in partnership with SMEs, cooperatives, and state economic development corporations, these parks will consist of 100 MW deployment per site across 5 sites in several states. The collaboration is expected to have positive impact to the environment, job creation and downstream socio-economy
Emission avoidance
For each 100MW park, emission avoided is estimated at 160k - 177k tCO2e per year1 for 25 years, equivalent to displacing emission from approximately 39k petrol-powered passenger vehicles driven for one year2.
Job creation
For each 100MW park, an estimated 1,500 to 2000 jobs to be created during construction, and 150-200 jobs to be created during operations.
Flagship Project #3: Green Hydrogen and Ammonia Co-Firing to Decarbonize TNB Power Plants
TNB, through its subsidiary TNB Power Generation Sdn Bhd (GenCo), has formed strategic partnerships with reputable partners to undertake ammonia and hydrogen co-firing studies. Two types of co-firing studies are conducted:
1. Ammonia co-firing in coal fired boiler
| Partnership | TNB, IHI Corp & Petronas |
|---|---|
| Current status |
Completed Phase 1 of feasibility studies:
|
| Next milestone |
*FEED is the pre-requisite activity for co-firing implementation, as early as 2024 at selected coal assets. |
2. Ammonia / biomass co-firing
| Partnership | TNB, Mitsui & Chugoku |
|---|---|
| Current status |
|
| Next milestone |
|
While the latest development in the electricity supply industry of Malaysia has been exciting, opening ~57GW of RE opportunities in the country by 2050, TNB will continue to expand our renewable energy portfolio on both domestic and international grounds as we build capability and gain access to technology and market knowledge.
Source: National Energy Transition Roadmap, Analyst Briefing 2QFY23, 3QFY23.
Note 1: Estimated CO2 avoidance assumes 1MW generation from RE = 1600 – 1776 tCO2e/year avoidance (ref: Sustainable Energy Development Authority).
Note 2: as calculated using US EPA greenhouse gas equivalent calculator. www.epa.gov/energy/greenhouse-gas-equivalencies-calculator