Tenaga Nasional Berhad, Malaysia’s largest power utility company has issued a statement declaring to be a net zero carbon emission company by 2050.
Taking a bold move towards a sustainable future, TNB is fulfilling the nations aspiration to decarbonise and embark on a long tern journey adopting renewable energy as the main source of power for the country. “This new pathway is a clearer manifestation of TNB’s sustainability journey which began in 2016 with the launch of the Reimagining TNB strategic plan. Today’s commitment provides further clarity towards TNB’s sustainability path over the next 30 years,” said TNB President and Chief Executive Officer, Datuk Ir. Baharin Din. Baharin revealed TNB’s sustainability pathway on the sidelines of its First Half Financial Year 2021 (1HFY2021) announcement today.
Under its sustainability pathway, TNB aspires to achieve net zero emissions by 2050. This aspiration is underpinned by a commitment to reduce 35% of its emissions intensity as well as 50% of its coal generation capacity by 2035. In addition, TNB has pledged to ensure its revenue from coal generation plants does not exceed 25% of its total revenue. The company had earlier this year committed to no longer investing in greenfield coal plants after Jimah East Power which was commissioned in 2019, while existing plants will be phased out on expiry of their power purchase agreement (PPA).
“Leading up to the 2035 commitment, we will continue to improve efficiency at our existing thermal plants, and build up scale in our renewable generation portfolio. Our target is to achieve 8,300MW of RE by 2025,” added Baharin.
“We believe that an inflection point between 2035 and 2040 will determine the speed of our net zero trajectory. Hence, building up towards that point, TNB is dedicated to develop energy storage solutions and is already in discussions with the Government to implement this as an enabler for RE growth. TNB is also committed to accelerate investments in emerging green technologies like green hydrogen, and carbon capture and utilisation (CCU) – as soon as it becomes economically viable,” added Baharin.
The efforts are part of TNB’s commitment to the Government’s green agenda and Malaysia’s commitment to reduce Greenhouse Gas (GHG) emission intensity of gross domestic product (GDP) by 45% by 2030, relative to the 2005 baseline.
Gradual Recovery of 1HFY2021 Performance Due to Improved Economic Activities TNB reported a gradual recovery in its First Half Financial Year 2021 (1HFY2021) performance against the ongoing Covid-19 pandemic backdrop. The Group’s profit after tax (PAT) recorded at RM1,823.5 million, an improvement from RM1,412.7 million in 1HFY2020, but still lower than the pre-pandemic 1HFY2019 PAT of RM2,651.3 million.
Sales of Electricity grew slightly by 4.9% to 59,304 GWh from the same period last year, driven by more economic activity. The demand growth was led by the industrial sector which saw a demand increase of 15.4% from the same period last year. EBITDA margin sustained at 40.6% in 1HFY2021 as the increase in revenue was moderated by
higher expenses of RM507.2million largely driven by our non-generation cost and higher allowance for doubtful debt by RM326.6million in the period.
During the year, the Malaysian economy performed better in the second quarter by recording a growth of 16.1% compared to negative 0.5% in the first quarter. The growth was mainly driven by the improvement in domestic demand and continued robust exports performance. This is consistent with the demand growth recorded by TNB of 4.4% for the first half of the year where recovery was registered in the industrial sector.
