TNB Secures Kenyir Hydro Power Extension Until 2030

Tenaga Nasional Berhad (TNB) has successfully obtained an extension for its Power 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 (MW) facility.

“

TNB has obtained an extension of the power purchase agreement (PPA) for the Sultan Mahmud Hydroelectric Station in Kenyir, ensuring the continuous operation of the 400 megawatt (MW) facility until August 31, 2030.

The extension, effective retrospectively from September 14, 2025, was approved by the Energy Commission. Its primary purpose is to guarantee uninterrupted operation of the Kenyir hydroelectric station before the implementation of the Hydro Life Extension Program (HLEP). TNB stated in a filing to Bursa Malaysia that the extension is crucial for supporting continuous electricity generation during extensive repair and refurbishment activities planned for the plant's generation units.

“

The extension... is intended to ensure the uninterrupted operation of the Kenyir hydroelectric station before the implementation of the Hydro Life Extension Program (HLEP).

The Sultan Mahmud Hydroelectric Station, also known as SJ Kenyir, is equipped with four generation units and has a total installed capacity of 400MW. It plays a vital role in maintaining the reliability of the national grid, particularly in the eastern region of Peninsular Malaysia. TNB highlighted that the extended PPA will also ensure the ongoing contribution of revenue from SJ Kenyir during the interim period, supporting the stability of the company's generation portfolio as it transitions towards long-term operations through the HLEP initiative.

“

The extension... will also ensure the continuity of revenue contribution from SJ Kenyir in the interim period while supporting the stability of the company's generation portfolio...

In a separate announcement, TNB also revealed the voluntary closure of its inactive subsidiary, TNP Construction Sdn. Bhd. (TNPC). This move is part of a broader group rationalization strategy. TNPC, a wholly-owned subsidiary of TNB Properties Sdn. Bhd. (itself wholly owned by TNB), held its general meeting on May 25, 2026, where shareholders approved the resolution for its voluntary winding up in accordance with Section 439(1) of the Companies Act 2016. Imran Azam Safar from MA Corporate Restructuring & Insolvency Services has been appointed as the liquidator. TNPC, incorporated on June 22, 1998, was previously involved in construction contracting but is no longer active. TNB clarified that TNPC is not a core unit within the group, and its investment cost was minimal, totaling RM600,001.

“

TNB also announced the voluntary winding up of its inactive subsidiary, TNP Construction Sdn. Bhd. (TNPC), as part of the group's rationalization efforts.