Business

Saturday October 24, 2009

TNB’s joint venture operational by 2015

By LEE KIAN SEONG


KUALA LUMPUR: The Sumatera-Peninsular Electrical Power Interconnection Project, which is jointly developed by Tenaga Nasional Bhd (TNB) and PT PLN (Persero) of Indonesia, is scheduled to be operational by 2015.

The electrical interconnection project, which will have a capacity of 600 megawatts, will comprise 200km of 250kV overhead High Voltage Direct Current (HVDC) double circuit and two 57km of 250kV HVDC submarine cables.

PLN is the state body responsible for all matters related to electricity supply in Indonesia.

TNB chairman Tan Sri Leo Moggie said the project was a step towards further enhancing the close relationship between the two countries’ power utilities.

“It is also an avenue that will bring us closer towards realising the aspiration of developing a fully integrated Asean Interconnected Transmission Grid, or the so-called ‘power highway’, among the Asean countries,” he said at the heads of agreement signing ceremony between TNB and PLN yesterday.

He said the technical and commercial studies jointly carried out by TNB and PLN confirmed the technical feasibility and economic viability of the project and the benefits it would bring to both countries.

“Major benefits of this interconnection project include the reduction in joint production and operating costs and the sharing of spinning (power) reserves and mitigation of demand-supply imbalance,” Moggie said.

He said the agreement, the penultimate step before an actual implementation contract, would focus and finalise the details of implementation through three main working groups.

“The working groups are expected to come up with their recommendations within six months of signing this agreement,” he said.

Meanwhile, Energy, Green Technology and Water Minister Datuk Peter Chin Fah Kui said the ministry viewed the interconnection project as one of the positive moves towards managing those issues through sharing of resources and expertise.

“Globally, matters related to energy and environment are becoming more prominent and have taken centrestage,” he said.

Chin said the issues being debated included an increase in fossil fuel prices and its depleting resources, environmental pollution, global warming, energy security and sustainability.

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