JICA EPU 60th Anniversary In Malaysia

“Development Cooperation for Malaysia and Japan: Past Successes and Future Partnership”

Le Meridien Putrajaya, Malaysia

TNB’s Experience

By:

CoE (Turbine) Energy Ventures Division

18 May 2017

The Need For Stable & Secure Electricity Supply In Peninsular Malaysia

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• Between 1992 and 1998, the power demand in Malaysia increased rapidly due to higher economic growth and foreign investments. Peak demand almost doubled with energy growth rate of 5-8% p.a.

• When the financial crisis set upon Malaysia in 1997-1998, project financing was difficult and will cause delays in project implementation.

• The Government of Malaysia prioritised rehabilitation of TNB power plant and identified the old 600MW oil fired Tuanku Jaafar Power Station at Port Dickson.

• Japan’s Ministry of Foreign Affairs ODA policy considered rehabilitating TJPS to meet their assistance policy.

• In March 1999 and March 2000, the Government of Malaysia became the guarantor for TNB to enter into 2 soft loans with JICA totalling about ¥98 billion to replace the old power station with the latest high efficiency and environment friendly 2x750MW combined cycle power plant.

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2x750MW Combine Cycle Power Plant Tuanku Jaafar Power Station

• PD1 – 1x750MW CCPP • Commissioned in June 2005 • Reserve margin was between 30-40%

• PD2 – 1x750MW CCPP • Commissioned in December, 2009 • Reserve margin was about 40%.

Satellite Photo of Tuanku Jaafar Power Station

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PD1

PD2

Benefits From The Project Funded By JICA

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• Both Projects were evaluated by OPMAC Corporation of Japan

• Relevant With: • the Development Plan of Malaysia • the Development Needs of Malaysia • ODA Policy

• Effective

• Stable power supply • Reduced CO2 emission

• Impact

• Stabilise Power System in Peninsular Malaysia • Positive impact on the environment

• Efficiency

• Sustainability

TNB’s Way Forward & Future Cooperation Potential

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• Way Forward • Ensure sustainable growth and stable shareholder returns • Deliver reliable and efficient electrical energy supply to the Nation • Overcome stagnation risks: • Anticipate changes and respond appropriately to industry trends

• Goal to be the top 10 utilities by market capitalisation by 2025

• Cooperation Potential • Good partnerships and collaborations for opportunities in:

• Greenfield projects • Brownfield projects. • Acquisitions

• Scopes include • EPC • Financing • Technical provider

TNB’s Business Snapshot

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India GMR Energy-Acquisition of 30% stake United Kingdom Vortex Solar Investments S.a.r.l. – Acquisition of 50% stake.

INDIA

UNITED KINGDOM

JICA Kyushu International Center

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Kyushu International Center 2-1, Hirano 2-chome, Yahata Higashi-ku, Kitakyushu City, Fukuoka Prefecture 805-8505

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Thank you.

By: Sabri Jaafar, Chief Engineer (Turbine), TNB Energy Ventures Division. sabrij@tnb.com.my