Last Updated: 4:50pm, Apr 07, 2014

PETALING JAYA (April 7): Lembah Pantai MP Nurul Izzah Anwar questioned the government today over the awarding of 50MW Solar Plant Project to 1MDB despite past controversies and through direct tender.

She said the project came fresh after 1Malaysia Development Berhad was awarded with an estimated of RM11bil contract involving a 2,000 megawatt coal-fired power plant project, the Project 3B.

1MDB, she said introduced the mega solar power plant and has secured an estimated tariff rate of RM0.40 to RM0.46 per kWh, which is lower than the existing tariff for electricity generated by solar plants.

The electricity generated from non-subsidised gas would approximately cost RM0.35.

"We can assume that the government’s strategy is to dislocate gas when subsidy withdrawals take place as part of the subsidy rationalisation programme. We ought to know who is the technological partner or provider to 1MDB, to ascertain the extent of risk exposure for the company now considered a national treasure by the government," said Nurul Izzah.

In addendum, minus the reassurance offtake and urge to compete against conventional fuels, she said the cost of the 50MW solar plant project would lead up to a staggering RM900 million, although the photovoltaic prices being on a downhill trend.

"However, it cannot be determined if that is the best rate with present technology because it is learnt that it is a directly negotiated exercise. The planned 50MW solar farm to be built in Kedah will also become the largest in the country, especially if the 50MW is proven to be just a pilot, paving the way for a bigger scale solar panel project," said the Nurul Izzah.

The PKR vice president also urged the government to explain the decision to embark on a direct tender exercise involving 1MDB when SEDA (Sustainable Energy Development Authority), in 2012 had to exercise an open bidding for energy quota fixed between 1MW and 5MW.

She also questioned whether 1MDB have the track record and in-house expertise needed to run the solar power projects and the exact location of the estimated 300-500 acres required for the 50MW solar plant.

"They (government) have to confirm the type of support provided to the project. Is it through transmission from solar plant to grid, bridging any gap on funding grants, to the lease for the estimated 500 acre land needed for the entire project or is it the usual Private Public Partnership project?," asked Nurul Izzah.

She said 1MDB has lately been on a power hunt, starting with the acquisition of over RM10 billion in power assets at an overblown prices, including the power assets of Tanjong, Jimah and Genting, up to recently a successful bid of RM11 billion for 2,000MW of coal-fired project.

"1MDB’s solar farm initiative will also violate upon TNB’s space since TNB’s wholly-owned subsidiary TNB Energy Services Sdn Bhd has been advocating on renewable energy, especially solar power, for years now.

"1MDB’s foray into solar power will only crowd out TNB and other, smaller solar power players." added.

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