On the back of Malaysia’s increasing electricity demand, UOB Malaysia is helping to contribute to the country’s transition to cleaner energy through its support of power plants with lower environmental impact.
To increase the national power capacity mix, the Bank is committed to supporting the development of projects that use efficient energy sources, such as natural gas and renewables.
Power generation in the country is projected to grow by an average of 3.2 per cent annually to reach 47.8 gigawatts by the end of 20281. The Klang Valley region accounts for the highest electricity demand in Peninsular Malaysia. With its current supply deficit, the region relies heavily on the long-distance transmission of power from both the Northern and Southern areas of the Peninsular.
Ng Wei Wei, Managing Director and Country Head of Wholesale Banking, UOB Malaysia, said: “With the central region seeing higher electricity consumption growth rates, there is a need to increase capacity by constructing 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.”
UOB Malaysia was a co-financier 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 per cent less carbon dioxide per kilowatt-hour than a typical coal plant.
Ng added: “We 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.”
This projection is underpinned by the recent announcement of new power plant constructions under the Large Scale Solar (LSS) 4 programme by the Energy Commission of Malaysia.
Solarvest Holdings Berhad, an engineering, procurement, construction and commissioning (EPCC) partner in UOB Malaysia’s U-Solar programme, was one of the LSS4 successful bidders.
UOB Malaysia also supported two solar power plant projects – the Sinar Kamiri Power Plant located in Sungai Siput, Perak and the Kenyir Gunkul Power Plant situated in Dungun, Terengganu – under the previous LSS programmes.
Ng said: “Through our U-Solar programme and financing of the Sinar Kamiri and Kenyir Gunkul solar power plants, we aim to encourage greater nation-wide adoption of green technology.
“This is in line with our commitment to forging a sustainable future for better businesses, lives and livelihoods and communities as we contribute to the nation’s long-term economic, social and environmental well-being.” — @green