KUALA LUMPUR (Oct 20): National utility Tenaga Nasional Bhd (TNB) will repower Sungai Perak power stations (SSJ Sungai Perak) with a capacity of 650.75 megawatt (MW) to support Malaysia's renewable energy (RE) aspiration and to ensure its sustainable business growth.

TNB, via its wholly owned unit, TNB Power Generation Sdn Bhd (TNB Genco), has received approval from the Energy Commission to implement the Hydro Life Extension Programme for six stations in SSJ Sungai Perak, with an investment of RM5.8 billion commencing this year.

TNB president and chief executive officer Datuk Indera Baharin Din said 18 generating units at the six stations will be upgraded to the latest technology and SSJ Sungai Perak's operations are expected to contribute RM200 million annually to the group's earnings before interest and tax (Ebit).

"This is among the initiatives to further strengthen TNB's energy transition, with an RE capacity target of 8,300 MW by 2025, in line with our aspiration to achieve net zero emissions by 2050. This will reinforce TNB's dominance in the hydro generation sector with a cumulative capacity of 2,661 MW in supporting a carbon-neutral nation and the National Energy Policy announced by the government recently," he said in a statement on Thursday (Oct 20).

In addition to SJ Pergau, other stations in the same hydroelectric scheme — namely SJ Temengor, SJ Bersia, SJ Kenering, SJ Chenderoh and SJ Sungai Piah — will be operated under a new power purchase agreement for 40 years. The first unit will begin commercial operation in 2025.

The upgrading works of SSJ Sungai Perak involve the latest technological requirements including turbines and transformers to improve its efficiency and lifespan while strengthening TNB's commitment to environment, social and corporate governance.

TNB Genco managing director Datuk Nor Azman Mufti said SSJ Sungai Perak is continuing its role in flood mitigation, managing water reservoirs for agriculture and clean water supply as well as increasing employment opportunities and new business activities such as ecotourism and aquaculture.

"In terms of green energy, SSJ Sungai Perak will reduce up to 464,000 carbon dioxide equivalent (tCO2e) emissions, which is equivalent to carbon emitted by over 100,000 vehicles per annum," he added.

TNB's share price closed 1.11% or nine sen higher at RM8.23 on Thursday (Oct 20), giving the utility giant a market capitalisation of RM47.35 billion.