Friday, March 4, 2011

Government Likely To Decide On Concessionaire For Second Coal-Fired Power Plant In June

KUALA LUMPUR, Feb 24 (Bernama) -- The government is likely to decide on the concessionaire for the second 1,000-megawatt (MW) coal-fired power plant in June this year, says Energy Commission chairman Tan Sri Dr Ahmad Tajuddin Ali.

He said the commission has issued the request for proposals from MMC Corp Bhd's unit, Malakoff Corp Bhd, and Jimah Energy Ventures Sdn Bhd with regard to the plant.

The sites for the plant would either be at Tanjung Bin in Johor, owned by MMC Corp Bhd or Jimah in Negeri Sembilan owned by Jimah Energy Ventures.

"We gave them until April this year to submit their proposals and we will do the analysis to decide on which one (the site)," Ahmad Tajuddin told reporters after a luncheon talk on alternative energy, organised by the Federation of Public Listed Companies Bhd, here Thursday.

Ahmad Tajuddin said the new plant was needed because the initial 1,600MW power to be generated by the Bakun hydroelectric station in Sarawak would not come to Peninsular Malaysia as planned in 2015.

"The immediate plan is to make sure that the gap left by Bakun is replaced. These coal-fired power plants would fill the gap," he said.

He said the first 1,000MW coal-fired power plant has been awarded to Tenaga Nasional Bhd (TNB), adding that TNB was in the final stages of making deciding on the engineering, procurement and construction contractor.

"The first plant is expected to commence operation in the first quarter of 2015 while the second plant will be in the first quarter of 2016.

"A 1,000MW coal plant will cost between RM3 billion and RM4 billion," he said.

Ahmad Tajuddin said new power plants would be built as the electricity demand was expected to grow by an average 3.4 per cent from 2011 to 2020.

"With growing energy demand and declining fossil fuel reserves, the country is looking to enhance and encourage the usage of renewable energy," he said.

He said the government was taking initiatives to secure future energy supply, such as diversifying sources of fossil fuel supply by seeking a more balanced generation fuel mix.

"Other initiatives are strengthening and expanding fuel and electricity supply infrastructures towards regional interconnection, exploring and building capacity for the nuclear option and promoting renewable energy resources via through enhanced fiscal incentives, grants and subsidies," he said.

He said the country aimed to achieve the target of six per cent of the electricity generated from renewable energy in 2015 from less than one per cent now.


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