KUALA LUMPUR (Mar 10): The Energy Commission (EC) will soon launch another round of bidding process for power plant concessions held by three first-generation independent power producers (IPPs) – YTL Power International Bhd, Powertek Sdn Bhd and Port Dickson Power Sdn Bhd – that will expire between this year and 2016, said its chairman Datuk Abdul Razak Abdul Majid.

YTL Power's concessions for two first-generation power plants in Paka, Terengganu and Pasir Gudang, Johor are due to expire by September this year. The power assets of 1Malaysia Development Bhd's Powertek Sdn Bhd in Telok Gong, Melaka and Malakoff Corp Bhd's Port Dickson Power Sdn Bhd in Port Dickson, Negeri Sembilan, meanwhile, will both expire in January next year.

Abdul Razak said the extension of existing power purchase agreements (PPAs) for the four power plants will hinge on the rates offered by the bidders.

"If there is a need, we will look into procurement options whether to extend the existing power plants or [from] other assets... whichever assets that others could offer at a more competitive rate," he told a news conference after the opening of the Sixth National Energy Forum today.
 
"If the rates prove to be uneconomic, we will not consider," Abdul Razak added.

The other five power plants that were renewed before included Tenaga Nasional Bhd's Pasir Gudang plant, Malakoff's Lumut plant under Segari Energy Ventures Sdn Bhd and Genting Sanyen Power Sdn Bhd's power plant in Port Dickson. However, YTL Power’s power plants did not get their licences renewed.

The Edge weekly had reported last year of a potential power capacity crunch in the country in the next couple of years, after Malakoff faces hiccups in the completion of its 1,000-megawatt plant, which prompted the EC to consider renewing PPAs with existing power plants, to deflect any risks of power shortage.

At the same event, Energy, Green Technology and Water Ministry secretary-general Datuk Loo Took Gee said the ministry would be looking at marginal cost "so that the users can get electricity at a better rate".