The Energy Commission (EC) hopes to identify the power company that will plant up an additional 1,000MW of electricity by the end of January next year (2011).
They are still in the consultative process, evaluating the proposals submitted by three bidders of existing sites – Tenaga Nasional Bhd (Janamanjung), Malakoff Bhd (Tanjung Bin) and Jimah Power Sdn Bhd (Jimah).
They will pick the winner the latest by the end of January 2011. The winner this round has to ensure that the plant will be operational by the first quarter of 2015.
Each of these existing sites have the space for two more generating units of 1,000MW each.
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Tenaga Nasional Bhd, MMC Corporation Bhd and Jimah Energy Ventures could be chosen to develop an additional power plant capacity to overcome the lack shortage of power supply in Peninsular Malaysia.
It was reported that the power to be generated by the Bakun hydroelectric station in Sarawak would not come to Peninsular Malaysia as planned in 2015 as it will be used in the development of the Sarawak Corridor of Renewable Energy.
There is a risk that without the power from Bakun, the reserve margin will decline below the 20 per cent threshold.
Energy Commission chairman Tan Sri Dr Ahmad Tajuddin Ali said the government will make an announcement on the matter very soon. The government will make a decision soon on the suggestions made by the commission and the Ministry of Energy, Green Technology and Water on which company will be implementing the project.
The government however has yet to decide on how the contract will be awarded.
The company will be entrusted to increase the power capacity via the use of coal, is able to start operations in 2015.
Ahmad Tajuddin explained that by developing the project from an existing power plant, it would reduce operation cost. Building a new one would take a longer period as it has to undergo an environmental impact study. Industry players say it would take two to three years to build a new plant.
This initiative would also help to complement the government’s efforts to reduce dependency on gas, which currently constitutes 60 per cent of the total power generation.
TNB was recently reported saying that it is proposing to expand its coal-fired power plant in Manjung, Perak, to meet demand for electricity in Peninsular Malaysia.
Industry observers expect the national utility giant to seek to increase the capacity of its Manjung facility by 2,000 megawatt from its current 2,100 megawatt, at an estimated cost of between RM6 billion and RM7 billion.
Meanwhile, MMC's power unit, Malakoff Corporation Bhd which has six plants with a total capacity of 5,020 megawatts, is also ready to expand its Tanjung Bin coal-fired plant if the government requires as it has the land and transmission capacity to supply to the national grid.
On the other hand, Jimah holds a 25-year licence to operate a 1,400-megawatt coal-fired plant near Port Dickson, Negri Sembilan.
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