Competitive Bidding Exercise for the First Track Gas-Fired Power Plant in Prai Malaysia; Revenue Assessment for a New Plant

Abstract:

Competitive bidding exercise for a new power generation has been introduced in 2011 to bring Malaysia Electricity Supply Industry (MESI) into competitive electricity market. The competitive bidding process is an auction based mechanism organized by Energy Commission (EC) Malaysia. EC has successfully completed two auctions; 1) international competitive bidding exercise (Track 1) for a new capacity in Prai Penang, Malaysia and 2) restricted tender (Track 2) for the renewal of operating licenses of the first generation Independent Power Producer (IPP) and Tenaga Nasional Berhad (TNB) power plants. The Track 1 has won by Tenaga Nasional Berhad (TNB) for a 1,071 MW CCGT power plant, at a levelised tariff of 34.7 sen/kWh. On the other hand Track 2 has been awarded to Genting Sanyen Power and Segari Energy Ventures for another 10 years extension and TNB Pasir Gudang for another 5 years extension. This paper discusses the competitive bidding exercise implemented in Malaysia for new power plants. It also evaluates the revenues of TNB from the Track 1 bidding exercise. Sensitivity analysis is performed to study the impact of uncertainty in the fuel price, capacity rate financial and fixed and variable operating rate on the revenue of the plant. Result shows that the changes in the fuel price are the largest source of uncertainty for business investment in power plant and biggest variable in determining levelised.

• Periodical: Applied Mechanics and Materials (Volume 785)
• Pages: 484-489
• DOI: https://doi.org/10.4028/www.scientific.net/AMM.785.484
• Online since: August 2015
• Authors: M.A. Abdul Aziz, Nofri Yenita Dahlan, S.M. Shokri
• Keywords: Capacity Payment, Competitive Bidding, Energy Payment, Levelised Tariff, Revenue Assessment

References

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[3] Suruhanjaya Tenaga, International Competitive Bidding: Request For Proposal for the Prai CCGT power project, http: /st. gov. my, (2012).

[4] Suruhanjaya Tenaga, Results of International Competitive Bidding For New Capacity In Prai And Restricted Tender for Renewal of Operating Licenses of First Generation IPP and TNB Plants, Suruhanjaya Tenaga Media Release, (2012).