TNB to build 4MW mini hydropower station in Terengganu

PETALING JAYA: Tenaga Nasional Bhd's (TNB) wholly-owned subsidiary TNB Energy Services Sdn Bhd (TNBES) has signed a shareholders' agreement with Metrosphere Sdn Bhd to jointly develop and build a 4 megawatt (MW) mini hydropower station in Kuala Berang, Terengganu.
TNB told the stock exchange that TNBES will hold 49% stake in the joint venture (JV) company named Syarikat Metrosphere Hydro Tersat Sdn Bhd, while Metrosphere will own the remaining 51% stake.
Expected to be completed by end 2019, the 4MW small hydropower station will raise TNB's small hydropower installed capacity from 17.96MW to 21.96MW.
TNB said the station, which will be operated under a 21-year feed in tariff (FiT) scheme at RM0.25kWh, is expected to generate 25GWh of electricity per annum for an expected revenue of RM5 million per year.
It added that the JV company plans to seek further potential sites for small hydropower development in Malaysia, subject to obtaining a favourable FiT scheme.
TNBES specialises in the provision of green energy solutions and services for the development, consultancy, operation and maintenance of renewable energy projects.
It also provides engineering consultancy services such as energy efficiency, power quality system, power system study and interconnection facilities for new renewable energy plant.
Metrosphere, meanwhile, is an investment holding company with particular interest in renewable energy projects.
TNB's share price closed unchanged at RM14.84 with 18 million shares traded.