TNB secures extension for Kenyir hydro plant PPA until 2030

Tenaga Nasional Berhad (TNB) has secured an extension for its energy purchase agreement (PPA) for the Sultan Mahmud Hydroelectric Power Station in Kenyir, Terengganu. The agreement will now run until August 31, 2030, ensuring the continued operation of the 400-megawatt facility.

The extension, which takes effect retrospectively from September 14, 2025, received approval from the Energy Commission. Its primary purpose is to maintain uninterrupted operations of the Kenyir hydro station while crucial repair and refurbishment work is carried out on its generation units. This interim measure is vital for supporting the reliability of the power grid, particularly in the eastern part of Peninsular Malaysia.

TNB also noted that the extension will guarantee the ongoing contribution of revenue from the Kenyir station before the Hydro Life Extension Program (HLEP) is implemented. This supports the stability of the company's generation portfolio as it transitions towards long-term operations under the HLEP initiative.

In a separate announcement, TNB confirmed the voluntary closure of its inactive subsidiary, TNP Construction Sdn. Bhd. (TNPC). This move is part of a broader group rationalization effort. TNPC, a wholly-owned subsidiary of TNB Properties Sdn. Bhd., will be liquidated, with Imran Azam Safar appointed as the liquidator. TNPC, incorporated in 1998, was previously involved in construction contracting but is no longer active.