Since 2022, Laos has been exporting 100MW of green energy from its hydro power plants into Singapore, and has been paying TNB wheeling charges for that.
It is being done through a project involving four Asean countries in cross-border electric trade.
“If Laos can be selling green energy into Singapore via Malaysia, Malaysian producers should be allowed to do the same,” notes an industry player who is waiting with bated breath for the details of how local producers can export to Singapore. TPA will be a game changer
Perhaps even more significant is the planned opening up of Malaysia’s electricity grid to third parties, known as third-party access or TPA.
Probability There is pros and cons for cross border electricity trade. The green electricity production cost is Malaysia, Loas is much lower than gas fuel production cost in Singapore. If Singapore gov to import huge green electricity, it will affect Singapore gas fuel power plant profit margin forward. Although most of YTL electricity now is contracted for 6 month- 2year, but if large amount of green energy is export to Singapore, it will affect Singapore wholesale energy price.. If wholesale energy price is much lower than contracted price, it will discourage end user to lock their electricity for long contract period, instead, will opt to source much cheaper power from wholesale market, especially if wholesale power market is flush with green energy supplier.
YTL seraya own 3000 MW gas power plant in singapore and currently enjoy attractive profit margin above 20%. Since begins 1 July, Singapore wholesale market selling price have normalize, back to range 120-250 MWh compared to earlier selling price level more than 400 MWh and now also lower than contracted power traffic at 289 MWh. If Singapore continue import a lot more energy, it will eventually affect YTL seraya profit margin in future although if can offset partly through cross border trading fees.
It is imbalance to known only positive element in stock, it need both positive and potential negative that will affect stock perfromance. Use own discretion to assess risk and reward
Has to support Anwar govt if they can survive this state election, HSR is a go which will boost economy. Muhiddin govt cancel HSR and pay hundred of millions compound which is very "clear"....
If lost the tender might be good thong no need to take the long term risk of running the hsr not proven business. Sell cement to whoever wins might be more lucrative. Anyhow win win situation.
Don't just look at HSR look at their current assets. I think YTL is great in the long game
Alex Chua
If lost the tender might be good thong no need to take the long term risk of running the hsr not proven business. Sell cement to whoever wins might be more lucrative. Anyhow win win situation.
i hope voters have wisdom to vote in this state election and let Anwar govt lead for 5 years. If not happy only change in next election. Msia cannot affort to have another political uncertainties.
As for commercial viability, Mohd Ikhsan noted that based on 10 HSR operators globally that publish their financial results, nine are “commercially viable at the earnings before interest, taxes, depreciation, and amortisation (Ebitda) level”
HSR is the right move. Make it easier for our skilled labour to earn higher salary. 3.5X more! Earn in expensive Singapore Dollar, live in klang valley spend cheap Ringgit.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
xiaochen
502 posts
Posted by xiaochen > 2023-07-05 08:35 | Report Abuse
Pestech fingers YTL’s construction unit for negative cashflow woes
https://www.freemalaysiatoday.com/category/highlight/2023/07/04/pestech-fingers-ytls-construction-unit-for-negative-cashflow-woes/