Earth Hour by Switching-Off TNB's Nuclear Plan(t)? (26 March 2011)

In conjunction with Earth Hour today, would you do your part by switching off lights from 8.30pm to 9.30pm? I heard people are talking about earth hour since weeks before, and many shopping malls and hotels are organizing some amazing events during this special dark moment. Actually, the idea of Earth Hour came out as a way to showcase a growing global community's commitment to taking environmental action and protecting the planet we are living in.

And, this year, the one-hour is just like a moment for us to remember the lost lives in Japan earthquake and tsunami disaster, which killed more than 10,000 lives. Of course, the nuclear radiation treat are still looming in Japan, and we really needs to evaluate the effects.

But, isn't nuclear power GREEN?

As I know, nuclear power is much more environmental friendly than Coal/Gas power plant. Although Hydro power is renewable, it is devastating to the nature when construction by greatly changes the topography of the surrounding area and sacrificing the habitat of animals.

However, Japan's latest nuclear emergency is a wake-up call for aspirant TNB who is planning to build out nation's first nuclear power plant by 2015. It is likely to be hot debate in parliament and will soon become an "political agenda" in the upcoming general election.

Electricity Capacity as at June 2010. (Tenaga Nasional Bhd)

Do we really need Nuclear Power?

As of June 2010, 91% of Malaysia's electricity is generated by either gas, coal and oil. This is totally not environmental friendly. Hence, in June 2009, the Malaysian cabinet decided to include nuclear energy as part of an energy option for electricity generation particularly in Penisular Malaysia for post-2020. With the treat of climate change and the depletion of fossil fuel resources, it is no surprise that utilities worldwide are putting the nuclear alternative back on the table until the Japan disaster recently.

Other than nuclear, many people think that solar, wind and biomass energy which is renewable is an good alternative. But, it is ridiculous if we are to talk about constant and stable energy production and competitive pricing. Please bear in mind that, the more expensive power produced by TNB will translate into higher electricity tariff to consumers.

www.financemalaysia.blogspot.com

In conclusion, I think Malaysia needs Nuclear power and should proceed with the nuclear power project for sustainable power supply to power up our nation, continue growing in the future. We should not lag behind and must plan ahead for nuclear power because nuclear power plant needs 10 years to build and commissioned. The main concern for Malaysians, however, is the lack of expertise and maintenance of nuclear power. Government should address this problem thoroughly, and once solved, everything would be smooth sailing.

Source: Tenaga Nasional Bhd

The Electrifying TENAGA (Nuclear, USD, Tariff)

Tenaga Nasional Bhd (TNB), the national power producer of Malaysia, would embark on nuclear power in the next few years. Given the sensitivity of such issue, Malaysia government has again hinted that there are plans to construct nuclear power plants in the country to fulfill boost up the electricity capacity.

Example of Nuclear Power Plant

According to theStar recently, Energy, Green Technology and Water Minister Datuk Seri Peter Chin said Malaysia plans to build two nuclear power plants with a capacity of 1,000 megawatts (MW) each and commencement of operations in 2021-2022. This is part of the country's overall long-term plan to balance its electricity generation mix.

The two nuclear plants would represent 9% of peninsular Malaysia's existing power generation capacity of 21,817 MW. This is necessary for the country given that the peninsula's power reserve margin will drop from 44% currently to below 20% by 2016 while the 1,600MW Bakun undersea cable project has been discontinued.

While nuclear power is a long-term catalyst, there is short and medium-term positive news for Tenaga.

Short-term:

Generally, weakening of USD would improve the balance sheet of Tenaga as most of its debt are denominated in USD. With USD falling from 3.14 to 3.09 for the past two weeks against RM, Tenaga stands to gain from lower financing cost/interest incurred.

Medium-term:

With the escalating coal prices which put pressure on the bottom line of Tenaga, government has agreed to grant Tenaga to hike electricity tariff very soon. Speculations are rife up saying the hike could materialized as early as 1st January 2011, and the percentage was up to 40%.

Although Finance Malaysia expecting a tariff hike in second quarter next year, it should not be more than 20%. This is a very cost-sensitive issue given the upcoming general election said to be after Chinese New Year.