KUALA LUMPUR: Tenaga Nasional Bhd (TNB) plans to invest around RM20 billion annually over the next 28 years to fast track its energy transition plan to reduce its emissions intensity to net zero by 2050.
President and chief executive officer Datuk Indera Baharin Din said the investment would pave the way for TNB's journey towards its net zero aspiration and open opportunities in more than doubling its earnings.
"This Responsible Energy Transition journey will bring positive business growth to the group, even as we accelerate our efforts to decarbonise," he said in a statement today.
Baharin said as it invested in the "Grid of the Future", the company would grow its regulated asset base to RM100 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 RM7 billion by 2050," he said.
TNB said with a strong, interconnected and resilient Asean power grid, the regional countries can transfer energy from areas with abundant energy generation at a time when other parts face a shortage.
This would enable the region to integrate different sources of renewable energy (RE) with complementary supply profiles, which will facilitate the decarbonisation of Asean power systems.
Malaysia's significant RE potential capacity can provide a pathway for wider economic benefits, allowing it to export excess RE to its regional neighbours in times of surplus, said TNB.
Baharin said TNB was accelerating its sustainability agenda which required it to undertake major shifts across the value chain in meeting its environmental, social and governance commitment while ensuring sustainable business growth.
"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," he said.
On its generation company (GenCo), he said the acceleration of TNB's decarbonisation plan would increase the enterprise value of GenCo for the possibility of an initial public offering (IPO).
TNB Genco aimed to capture an estimated RM40 billion in revenue from the domestic generation market by 2050, he added.
On electric vehicle (EV), he said TNB was focused on developing the EV ecosystem in an effort to bring consumers along the energy transition journey.
"We are committing to invest RM90 million over the next three years in order to spur the adoption of EVs, reaching 500,000 cars by 2030 that will contribute RM1.25 billion in annual electricity revenue," he added.