Tenaga Nasional (5347) Status update summary

Strategic renewable energy initiatives

• Two major projects highlighted: Hybrid Hydro-Floating Solar (HHFS) and Hydro Life Extension Programme (HLEP), both central to advancing Malaysia's energy transition and supporting the National Energy Transition Roadmap (NETR) targeting 70% renewable energy by 2050.

• HHFS leverages existing hydro reservoirs, integrating floating solar arrays and battery storage to maximize renewable output and minimize environmental impact, with Kenyir 1 as the flagship project.

• HLEP focuses on extending the operational life and efficiency of five hydro stations along Sungai Perak, ensuring continued green electricity generation and compliance with regulatory standards.

Project status and milestones

• Kenyir 1, Southeast Asia's largest hybrid hydro-floating solar project, targets commercial operation in Q4 2028, delivering 595 MWac solar capacity and 1,190 MWh battery storage.

• The project involves 1.1 million solar panels, 1.1 million floating units, and is divided into five operational zones, with a 21-year take-or-pay PPA under the CRESS framework.

• HLEP commenced in November 2024, with phased upgrades to 18 generating units (648 MW total), aiming for full completion by 2033 and first unit COD in December 2026.

Financial and commercial structure

• HHFS project structured as a joint venture (70%/30%) between TNB Genco and Terengganu Incorporated, with an 80/20 debt-to-equity financing model.

• IRR guidance for renewable projects is in the high single-digit range; CapEx for floating solar is 10–15% higher than ground-mounted due to additional equipment and technology maturity.

• The CRESS acceleration package offers a premium tariff for the first 10 years if COD is achieved by 2028, with future rates subject to negotiation.