Malaysia’s largest electricity provider Tenaga Nasional Berhad, or TNB, has said it will retire some of its coal plants earlier than planned, as part of its sustainability agenda.
The state-owned utility said it will start by closing a 1,400 megawatt (MW) coal plant in Selangor state, originally slated to retire in 2029, up to a year ahead of schedule. The plan is still pending nods from shareholders and the government.
“TNB is very much in the driver’s seat when it comes to delivering the nation’s energy transition,” said TNB president and chief executive officer Datuk Baharin Din.
TNB has plans to reduce its emissions intensity by 35 per cent and halve its coal generation capacity by 2035. The utility also wants to reach net-zero emissions by 2050.
Ghee Peh, an analyst at United States-based thinktank Institute for Energy Economics and Financial Analysis, said TNB’s announcement was significant as the plant slated for early closure can be considered a large power station for the Malaysian market.
“Malaysia historically has had no issues sourcing coal from Indonesia and even Australia. For the government to commit to closing this coal plant shows determination and also some planning to replace the power from this plant with renewable energy,” Peh added.