KUALA LUMPUR: Tenaga Nasional Bhd’s subsidiary TNB Energy Services Sdn Bhd (TNBES) has signed a shareholders’ agreement with Metrosphere Sdn Bhd to develop a 4MW mini hydropower plant in Sungai Tersat, Kuala Berang, in Terengganu.
TNB said in a statement today that TNBES and Metrosphere had formed Syarikat Metrosphere Hydro Tersat Sdn Bhd on a 49:51 basis.
The hydropower station is expected to be completed by end 2019, it added.
TNB said the 4MW small hydropower station will raise its small hydropower installed capacity from 17.96MW to 21.96MW.
The station is expected to generate 25GWh of electricity per annum, equivalent to RM5 million revenue annually. This is because the concession will run for 21 years for a Feed in Tariff (FiT) of 25 sen per kWh.
The JV also plans to seek further potential sites for small hydropower development in Malaysia, subject to obtaining a favourable FiT scheme.
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