UOB Malaysia has commited to increase the national power capacity mix and to support the development of projects that use efficient sources of energy, such as natural gas and renewables.
The power generation in the country is projected to grow by an average of 3.2 percent annually to reach 47.8 gigawatts by the end of 2028, compared to 2020 at 36 gigawatts.
Additionally, the Klang Valley region accounts for the highest electricity demand in Peninsular Malaysia, and with its current supply deficit, the region relies heavily on the long-distance transmission of power from both the Northern and Southern regions in the Peninsular.
Managing Director and Country Head of Wholesale Banking, UOB Malaysia, Ng Wei Wei said with the central region seeing higher electricity consumption growth rates, there is a need to increase capacity through the construction of power plants that are more efficient and more sustainable.
“To this end, UOB Malaysia is committed to supporting projects that will help the country make the transition to natural gas and renewables,” Ng said.
UOB Malaysia was a co-financier with Bank Pembangunan Malaysia Berhad (BPMB) and Maybank Berhad with a total RM2.7 billion in a Commodity Murabahah Term Financing-i facility for the recently announced 1,200 megawatt combined-cycle gas turbine power plant in Pulau Indah, Selangor.
The project is a joint venture between Worldwide Holdings Berhad and Korea Electric Power Corporation. Upon completion in 2024, the power plant is expected to meet the demand in the Klang Valley region in a more sustainable manner.
This is because a natural gas power plant has higher energy efficiency and emits 50 to 60 percent less carbon dioxide per kilowatt-hour than a typical coal plant.
Ng said that they are honoured to be part of the financing consortium for Selangor’s major power development plan that will generate more power for the residents in the central region of Peninsular Malaysia,” she said.
