Company Background
- Founded in 1949, Tenaga Nasional Berhad (2008066-W) is Malaysia’s primary electricity generation enterprise, transmitting and distributing all the electricity in Peninsular Malaysia, parts of Sabah and the Federal Territory of Labuan.
- TNB supplies electricity to approximately 10.6 million customers.
- TNB has an international presence in the United Kingdom, Kuwait, Turkiye, Saudi Arabia, and India.
- Within the renewable energy space, as of December 2022, TNB has a total gross portfolio of 2,896MW in Malaysia (including 2,536.1MW of large hydro) and 993MW across the UK, Turkiye, and India comprising mainly solar, wind, and hydro energy generation assets.
Business Description
Core Business
Electricity generation
TNB generates electricity through a diverse portfolio of power plants, including thermal (coal, gas, and oil), hydroelectric, and renewable energy sources. This includes both conventional and renewable energy generation to meet Malaysia’s power needs.
Key subsidiaries include TNB Power Generation Sdn Bhd (TNB Genco), responsible for the groups’ power plant operations, maintenance and upgrades, capacity expansions, and energy and efficiency initiatives.
Key statistics:
- Plant availability factor improved by 1.5% quarter-on-quarter in Q32023, contributing to a 43.6% quarter-on-quarter improvement in capacity payment.
- Measures taken to improve boiler tube failures and minimise planned outages resulted in an improved Equivalent Unplanned Outage Factor of 6.58%.
Key initiatives:
- Created TNB’s Hydro Dam Catchment Area Monitoring System – an internally-developed tool used for planning, management and monitoring of TNB’s hydro dam catchment activities
- Installation of advanced Industrial Internet-of-Things (IIoT) solution for Continuous Ship Unloader (CSU) centres, integrating wireless vibration and temperature monitoring systems into CSU equipment.
Renewable Energy and Sustainability
TNB is investing in renewable energy projects and initiatives to support Malaysia’s transition to a more sustainable energy future. This includes developing solar, wind, and other renewable energy projects, as well as initiatives aimed at improving energy efficiency and reducing carbon emissions.
Its’ key subsidiary is TNB Renewables Sdn Bhd, responsible for the development of renewable energy projects, operation and maintenance of renewable energy facilities, supporting TNB’s broader sustainability goals and renewable energy project financing
Key infrastructure:
- Majority comprised of large-scale solar (LSS) plants.
- Key sites include TNB Sepang Solar and TNB Bukit Selambau Solar Dua.
Key initiatives & projects:
- Collaboration with PETRONAS and Toshiba Energy Systems & Solutions Corporation to explore implementations of Carbon Capture & Storage (CCS) solutions in thermal plants
- Kicked off the Centralised (LSS) parks project, encompassing five sites with a capacity of around 100MW each.
- Kickstarted the domestic floating solar plant investments – tenders have been issued to developers to build a 30MW floating solar plant at the Chenderoh Reservoir on Perak River. Similar initiatives are to follow in similar plants at the Temenggor and Kenyir hydro reservoirs.
International Ventures
TNB also has international ventures and investments in the energy sector, which contribute to its revenue and strategic growth outside Malaysia.
Its’ key subsidiary is TNB International Sdn Bhd, responsible for international investments, market expansion, strategic partnerships and technology transfer and innovation.
Key statistics:
- Registered a higher full year performance from onshore wind portfolio of around 100MWp in the United Kingdom (UK).
Key initiatives:
- Started construction of two greenfield solar power plants with a total capacity of 102MWp in the UK with COD. The project is intended to steady TNB’s international RE platform as it is placed under a 15-year subsidy scheme.
- Acquired a 276MWp operational solar power plant in Ireland, in line with TNB’s international growth strategy towards 1GW of operational and under-construction assets.
- Acquired Australia-based Spark Renewables, marking TNB’s maiden footprint into Oceania-Australia. The acquisition of 100% interest contains a fully operational solar power plant of 120.5MWp, with several early-stages development pipelines in solar and wind technology.
Financial Information
As of June 2024:
| Net Profit Attributable to Owners of the Company | RM2,770.3 million |
| EBITDA Margin | 35.1% |
| Unit Demand Growth | 3.9% |
| Total Revenue | RM53,066.9 million |
| Capital Expenditure (CAPEX) | RM10,245.4 million |
| Total Assets | RM204,743.6 million |
| Return on Assets | 1.7% |
| Market Capitalisation | RM58,104.8 million |
Operational Information
Customer Profile
- Industrial: Manufacturers of goods and services. They make up TNB’s smallest segment of customers (36,051) but account for the largest share of electricity sales
- Commercial: Involved in business activities driving the national economy. They make up TNB’s second largest customer segment (1,796,239).
- Residential: TNB’s largest customer segment (8,910,066). Key priorities include empowering the residential segment to manage individual energy consumptions and adopting greener, efficient lifestyles.
- Total customer base: 10.85 million
Service Areas
TNB is the primary energy provider in Peninsular Malaysia, supplying to all 11 states and 2 federal territories. Although Sabah has its’ own electricity provider (Sabah Electricity Sdn Bhd), TNB owns a stake in SESB. TNB does not directly operate in Sarawak but collaborates on several projects with the state’s provider, Sarawak Energy Berhad.
- Southeast Asia:
- Indonesia: TNB has investments in power generation projects and partnerships in Indonesia.
- Laos: Involvement in hydroelectric projects and cross-border electricity trading.
- South Asia:
- India: TNB has investments in power generation projects, particularly in renewable energy sectors.
- Middle East:
- Pakistan: Investments in power generation and renewable energy projects.
- Saudi Arabia: Participation in power and utility projects through joint ventures.
- United Kingdom:
- UK: Investments in renewable energy projects, particularly wind farms and other green energy initiatives.
- Turkey:
- Turkey: Investments in power generation, including thermal and renewable energy projects.
Strategic Partnerships and Ventures
- ASEAN Power Grid: TNB is involved in the ASEAN Power Grid initiative, which aims to connect the power grids of ASEAN countries to improve energy security and efficiency.
- Cross-Border Projects: Various cross-border projects with neighbouring countries to enhance regional energy cooperation and grid stability.
Key International Projects
- GMR Energy Limited (India): TNB has invested in GMR Energy, focusing on thermal and renewable energy projects.
- Vortex Solar Investment (UK): A significant stake in Vortex Solar, which owns and operates a portfolio of solar farms in the UK.
- GAMA Enerji (Turkey): A joint venture focused on power generation and energy infrastructure projects in Turkey.