Over the next 28 years and to reach net zero by 2050, Tenaga Nasional Berhad (TNB) is increasing investments to the tune of around $20 billion ringgit (MYR) per year as capital expenditure (CAPEX) to strategically fast-track TNB’s Energy Transition Plan.
“The investment will pave the way for TNB’s journey towards its net zero aspiration and will open opportunities in more than doubling its EBIT,” stated TNB President and Chief Executive Officer (CEO), Dato’ Indera Ir. Baharin Din.
During a TNB Energy Transition Plan 2050 event last week, he said: “This Responsible Energy Transition journey will bring positive business growth to the Group, even as we accelerate our efforts to decarbonise.”
With all senior leaders of TNB’s major shareholders in attendance, as well as fund managers and analysts, TNB announced details on the organization’s roadmap to fast-track green goals.
Only last month, TNB shared initiatives meant to hasten its sustainability agenda and updated the progress on its energy transition plan.
The TNB President and CEO asserted during the forum that as TNB progresses with its plans to invest in the grid of the future, the company will increase its regulated asset base to $MYR100 billion by 2050.
“We will pursue regional interconnection that will allow for a wider reallocation of renewable energy resources that will help decarbonise the ASEAN power system as well as strengthen the security of supply. The grid will provide the group with potential earnings of $MYR7 billion by 2050,” he said.
TNB has already made it known it believes in a robust, interconnected and robust ASEAN Power Grid, so that ASEAN countries can share resources and support one another during energy shortages. Part of the money allocated would be used for an interconnected ASEAN grid would empower the region to integrate more renewable energy (RE) and aligns with the organisation’s current plans for an interconnected grid.
“Backed by a stable domestic market, our energy transition aspiration will provide us with the added capabilities, technologies and capital that are vital for a sustainable future. Our fast-tracked initiatives along this transition are driven by a deep sense of responsibility given TNB’s footprint in the country’s energy landscape, as well as a sense of urgency to ensure the sustainability of our business,” TNB President and CEO stated.
Other aspirations he highlighted involve TNB’s exclusively owned businesses: TNB Power Generation Sdn Bhd (TNB Genco), TNB’s New Energy Division (NED), and electric vehicles (EV).
For TNB Genco, he declared the hastening of TNB’s decarbonisation plan will grow the enterprise worth and the organisation intends to uncover an projected $MYR40 billion in revenue from the domestic generation market by 2050. Additionally, TNB is keen to begin gas and hydropower projects in ASEAN to increase capacity to roughly 800 megawatts (MW) capacity by 2050.
In growing its RE portfolio, NED is aiming 14.3 gigawatts (GW) capacity by 2050 with an projected equity investment of US$ 7 billion. NED’s approach is to grow investments in large-scale solar (onshore and offshore) with an emphasis on current and new markets.
On the EV front, he said, “Developing the EV Ecosystem as part of efforts to bring consumers along the Energy Transition journey. We are committing to invest $MYR90 million over the next three years in order to spur the adoption of EV’s, reaching 500,000 cars by 2030 that will contribute $MYR1.25 billion in annual electricity revenue.”
Article Source：Originally published(TNB Investing $20MYR Billion to Accelerate Energy Transition & Reaching Net Zero Goals)by Melissa Fitzgerald, Senior Content Manager at Enlit Asia