By BERNAMA
SIPP Energy Sdn Bhd (SIPP), with participation by YTL Power International Bhd (YTL) and Tenaga Nasional Bhd (TNB) as consortium members, has been offered a conditional award for the
development of a fast track combined cycle power plant (CCGT) in Johor.
The consortium has been awarded the CCGT with a capacity of 1,000-1,400 MW in Pasir Gudang, Johor on condition that the technical and commercial proposals are acceptable to the Energy Commission of Malaysia (EC).
The award, the EC said in a statement, is based on their ability to offer competitive rates in the recently concluded tender exercises.
The conduct of the Engineering, Procurement & Construction (EPC) tender will be vetted by ST, and the use of only proven gas turbine (GT) technology will ensure that all reputable GT manufacturers can participate in the tender, it said.
The levelised tariff that may be considered competitive must be comparable to the Prai CCGT tender exercise concluded in 2012, the EC said, adding it is continually assessing the country’s energy requirements to ensure the current capacity and future planned capacity can meet the energy demand.
The recent drop in available capacity due to unexpectedly high unscheduled outages of power plants, fuel supply issues, deration of plants and transmission constraints has raised concern on the security of the nation’s electricity supply system.
“One such incident was on May 7, 2014 when the TNB grid system operator had to initiate load shedding causing supply interruptions in several states in order to stabilise the grid system,” the EC said.
It said the construction of a plant scheduled to be operational in 2020 needs to be fast tracked to 2018 to meet the system requirements, and the optimal way to meet this deadline is through a conditional offer whilst still stipulating the need for competitive bidding for the EPC portion of the project.
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