Malaysia to choose builder of combined-cycle power plants soon

Malaysia next month will announce a shortlist of companies vying to build a series of more efficient combined-cycle power plants throughout the country.

If all goes well, the new plants are expected to begin operating by 2016 and help prevent a 10% drop in Malaysia’s electricity reserve.

Datuk Ahmad Fauzi Hassan, Chief Executive Officer of the Energy Commission (EC), said they had issued a request for quotation to 37 Malaysian companies and 10 foreign companies, including heavy hitters from Japan, South Korea and Germany.

“We are going to shortlist them based on the criteria that we have discussed with the Minister (of Energy, Green Technology and Water Datuk Seri Peter Chin Fah Kui),” he said.

Among the Malaysian companies bidding for the project are Tenaga Nasional Bhd, YTL Power International Bhd, Petroliam Nasional Bhd and Sime Darby Energy Sdn Bhd.

The foreign bidders include Mitsubishi Corporation, Mitsui & Co, Daewoo International Corporation, Korea Electric Power Corp and Siemens Project Ventures.

Assisting in the competitive bidding process are three consultants: PricewaterhouseCoopers Advisory Services (financial adviser), Sinclair Knight Merz (technical adviser) and Christopher Lee & Co (legal adviser).

In a combined cycle power plant, a gas turbine generator generates electricity and heat in the exhaust to make steam, which in turn drives a steam turbine to generate additional electricity. This last step enhances the efficiency of electricity generation.