Malaysia power and renewable markets H2 2016 summary: Fast-track power projects progress slowly
After two years of direct award, SIPP Energy's Southern Power Generation Sdn Berhad has finally received a green light from the government to build a 1,440 MW gas-fired generation (Track 4A) at Pasir Gudang, Johor. The project had been directly awarded without going for a competitive tender, citing a need to fast-track the project to 2018 instead of the initial plan for 2020 delivery. The start-up of the project is now slated for January 2020. The Track 4B 2000 MW CCGT was also directly awarded in August 2014, seven years ahead of the slated start-up of 2021. TNB's Track 3A 1000 MW Janamanjung coal project is another direct award project currently under construction. Now, with the direct award of 200 MW utility-scale solar this year, there has been a growing concern on the impact of these awards without competitive bids on long term power tariffs.