KUALA LUMPUR: Malakoff Corp Bhd's 350-megawatt power plant in Penang will continue operating for at least another one year.
This follows the signing of a new power purchase agreement (PPA) with Tenaga Nasional Bhd (TNB).
Malakoff said the PPA enabled its subsidiary Prai Power Sdn Bhd to continue operation of its combined cycle gas turbine power plant (CCPP) for another one year with an option for further extension in the future.
"With the commencement of the scheduled commercial operation date on Sept 1 2024, this essentially ensures a stable and reliable energy supply to meet the current increasing demand while enhancing energy security with a safe and sufficient reserve margin," it said.
Prai Power began operations in 2003, utilising an advanced single-shaft CCPP which was the first of its kind at the time, not only in Malaysia but also in Southeast Asia.
Malakoff said the single-shaft technology provided PPP with a distinct advantage, offering a relatively higher thermal efficiency and a lower heat rate compared to coal-fired power plants.
"Higher plant efficiency allows for optimised fuel consumption, thereby lowering its carbon footprint. Throughout its commercial operations for 21 years prior to the expiry of its existing PPA, Prai Power had been one of the most reliable and cost-competitive power plants supporting the national grid, with about two million megawatt hour of energy generated annually.
"It had incorporated several technological upgrades for its plant equipment such as its gas turbine and heat recovery steam generator, to further improve its reliability and readiness towards changing operational flexibility especially with the increasing penetration of renewables in the recent years," it added.
Malakoff managing director and group chief executive officer Anwar Syahrin Abdul Ajib said the PPA for Prai Power is the most economically viable and fastest solution to support the national grid, while enabling the plant to continue its operations within its remaining service life.
"As Malaysia aims to increase Renewable Energy capacity to 40 per cent by 2035 and 70 per cent by 2050 under the National Energy Transition Roadmap (NETR), it is vital to balance security, affordability and sustainability – the key elements of the energy trilemma.
"Prai Power, a proven and efficient single-shaft CCPP, plays a crucial role in this transition," he added.