Tenaga Nasional Berhad (TNB) and the University of Malaya (UM) have signed a 20-year Cooling Energy Supply Agreement (CESA) to modernise the cooling infrastructure at UM’s R&D Building, with the project expected to deliver savings of RM7.59 million.
The agreement, implemented through TNB’s wholly owned subsidiary TNB Engineering Corporation Sdn Bhd (TNEC), will see cooling energy supplied from TNEC’s District Cooling System (DCS) plant in Jalan Pantai Baharu.
The initiative is expected to reduce cooling-related costs by about 30% over the concession period while providing a more reliable and energy-efficient cooling system compared with conventional standalone facilities.
TNB President and Chief Executive Officer Datuk Ir. Ts. Shamsul Ahmad said the partnership highlights the growing role of district cooling systems in improving energy efficiency and supporting environmental sustainability.
He said the collaboration demonstrates TNB’s capability to provide stable, reliable and cost-effective cooling solutions for modern infrastructure while supporting UM’s sustainability ambitions.
UM Vice-Chancellor Dato’ Seri Professor Ir. Dr. Noor Azuan Abu Osman described the agreement as a key step in the university’s efforts to modernise campus infrastructure and strengthen its sustainability agenda.
He said the project aligns with UM’s aspiration to remain a leading research university committed to environmental stewardship and sustainable development.
The R&D Building was selected as the first project due to its cooling infrastructure having been in operation for more than 25 years and nearing the end of its economic lifespan.
Beyond the immediate benefits to the building, the collaboration could pave the way for future cooling energy optimisation projects across UM’s main campus, new campus developments and the University Malaya Medical Centre (UMMC).
The project also supports Malaysia’s National Energy Transition Roadmap (NETR) by promoting energy efficiency, reducing the environmental impact of conventional cooling systems and expanding the use of sustainable infrastructure.
