Latest news with #gasfiredpower
Reuters
2 days ago
- Business
- Reuters
Malaysia to build 50% more gas-fired power capacity to meet data centre demand, official says
KUALA LUMPUR, June 18 (Reuters) - Malaysia is expected to add 6-8 gigawatts of gas-fired power by 2030 to address growing electricity consumption driven by demand from data centres, an industry official said. The country is expected to see the fastest surge in data centre power demand in southeast Asia, with its share of electricity consumed by data centres in the region to triple to 21% by 2027 from 7% in 2022, a joint report in May by Bain & Co with others including Google and Temasek showed. Rising gas demand could see Malaysia, the fifth-largest exporter of liquefied natural gas (LNG), start importing the super-chilled fuel in four to five years, the head of state energy firm Petronas told the Energy Asia conference this week. Megat Jalaluddin, CEO of state utility Tenaga Nasional Berhad ( opens new tab, said he expects Malaysia to add 6-8 gigawatts of gas-fired power by building new plants and extending the life of existing ones as it looks to cut dependence on coal. That represents a 40-54% increase from the current 15 GW of gas-fired capacity. Total power consumption in Malaysia is on track to increase 30% by 2030, and Malaysia has already invited industry proposals for supply, he said. "We want to phase out coal responsibly. Then the next best option that can basically take the place of coal is gas," he told Reuters on the sidelines of the Energy Asia event. Malaysia could also add as much as 10 GW of renewable capacity by 2030, more than doubling the 9 GW currently, as data centres push for access to cleaner sources of power, he said. In the last two years, Malaysia has turned to its coal-fired power plants to address surging demand which grew at the fastest pace in 14 years in 2024, according to energy think-tank Ember. Data centres are expected to require 19.5 GW of power generation capacity by 2035, accounting for 52% of Peninsular Malaysia's electricity use, from about 2% now, Deputy Prime Minister Fadillah Yusof told Reuters. Technology giants including Microsoft, Nvidia, Alphabet's Google and ByteDance have announced billions of dollars in investments in Malaysia since the beginning of last year, powering an infrastructure boom. Malaysia's southern state of Johor has emerged as Southeast Asia's hottest data centre hub due to its proximity to Singapore, relatively cheap land and power and faster approvals, real estate consultancy Knight Frank said in a report.
ABC News
3 days ago
- Business
- ABC News
Claims WA's main power grid 'slowly collapsing' as its biggest gas plant teeters on edge
One of Western Australia's biggest gas-fired power plants has been teetering on the edge of bankruptcy, fuelling worries its failure could spark a wider crisis in the state's electricity system. It is understood former WA energy minister Reece Whitby last year sought a bailout of more than $30 million for the Newgen power station in Kwinana, south of Perth, as the generator battled to keep its head above water. With a capacity of more than 310 megawatts, Newgen is one of the most important units in WA's main power grid and supplies a significant share of the energy contracted by state-owned utility Synergy. Ian Porter, a 50-year veteran of the energy industry who now runs his own consultancy, said the importance of a plant such as Newgen should not be underestimated. He said it represented anything up to 15 per cent of the production in the state's main grid, which covers the south-western corner of the continent. The Newgen plant is owned by Japanese conglomerate Sumitomo and UK infrastructure group Foresight. Sumitomo is also the owner and operator of another troubled WA plant — the coal-fired Bluewaters near Collie, 180 kilometres south of Perth. Amid the pleas for a bailout, it is believed Mr Whitby argued that a failure by Newgen would directly expose Synergy to the wholesale electricity market, where prices have been soaring in recent times. Such an exposure would come as a further blow to Synergy, which sought its own billion-dollar bailout last year as its financial position continued to deteriorate. But the government is believed to have rebuffed the request, instead saying Synergy should fund any lifeline out of its own pocket. Mr Porter backed the government's decision to reject the bailout proposal, saying it should not be up to taxpayers to rescue privately owned companies. What's more, he said even if the plant became insolvent, that did not necessarily mean it would stop operating. "The company may go, but the assets remain," he said. Central to Newgen's troubles was a big shake-up in late 2023 of WA's biggest electricity market. The revamp was aimed at helping the grid cope with the transition towards renewable energy, which now accounts for about 40 per cent of WA's power. Mr Porter said the rise and rise of renewable energy in the west had been successful in many ways but he noted it had not been without its challenges. Chief among them, he said, was the way in which renewable energy could force out virtually all other generators when the sun was shining and the wind was blowing. Mr Porter said this presented a major problem for thermal generators such as coal and gas plants, which still provided most of the so-called essential system services that kept the grid stable and reliable. To maintain those services, he said the market had been redesigned to ensure market players were better paid for providing them. The problem was, he said, payments only benefited some generators and not others such as Newgen, even though the costs were spread across all market players. "I'm surprised that this would affect a gas generator," he said. "It would certainly affect renewables generators and how they're affected by that. I'm rather puzzled." On top of these problems, it is understood Newgen has also been affected by hurried moves to buttress the grid through back-up services such as large-scale batteries. Financial disclosures by Newgen show the plant has been losing money for some time. According to filings with the Australian Securities and Investments Commission, the generator was underwater to the tune of $1.67 million in the 12 months to June 30 last year. This followed on the heels of a $2.9 million reverse the previous financial year. Its financial health for the current period — the year in which Mr Whitby made his pitch for a bailout — will not be revealed for months yet. Summit Kwinana Power, the operating company behind Newgen, declined to comment. WA Energy Minister Amber-Jade Sanderson also declined a request to be interviewed about Newgen's predicament. Instead, the new minister provided a statement in which she said Newgen's finances were a matter between it and Synergy. "Synergy's contractual arrangements are commercial in confidence," Ms Sanderson said. Shadow Energy Minister Steve Thomas was more forthcoming, saying the problems at Newgen were just the latest sign of distress in the state's main electricity market. Dr Thomas said Newgen was a vital cog in what was arguably the state's most important machine — the grid — and letting the generator fail was a dangerous option. "I'm worried about Newgen, but I'm worried about the entire energy system," Dr Thomas said. "I'm worried about all of the generators who seem to be struggling. "I'm worried that the lights will not stay on in the fullness of time. "And I'm worried that the price for consumers, business and families will be beyond their capacity to pay." Critically, Dr Thomas said the government was facing a reckoning over its plans to get out of coal by 2029. He noted the government was already falling way behind in its efforts to build the new capacity needed to replace its giant Muja and Collie coal plants. If critical gas plants such as Newgen started falling over, too, he said, the state's plans and the broader energy system would end up in tatters. "We're going to see more of this," he said. "As the pressure comes on the government to provide the energy that's required at a cost that business and families can afford, the government is going to be under enormous pressure. "And this may well be just the first step. "The result will be prices through the roof as the system slowly collapses."
Arab News
05-06-2025
- Business
- Arab News
UAE's power capacity set to reach 79.1GW by 2035: GlobalData
RIYADH: The power capacity of the UAE is expected to reach 79.1 gigawatts by 2035, registering a compound annual growth rate of 3.4 percent from 2024, according to a report. Findings from data analytics and consulting company GlobalData stated that annual power generation in the Emirates is expected to increase at a CAGR of 3.8 percent from 2024 to 2035, reaching 281.3 terawatt-hours. Boosting power capacity is essential for the UAE as energy demand rises alongside a rapidly growing population, which is expected to reach 11.9 million by the end of the decade, up from 11 million today. A significant factor contributing to this increased energy consumption is the high expatriate population, which accounts for around 88 percent of the total and drives the growth in residential and commercial energy needs. 'The power sector in the UAE offers abundant opportunities for investors, with the government poised to make significant investments in the expansion and modernization of its generation and supply infrastructure,' said Attaurrahman Ojindaram Saibasan, power analyst at GlobalData. He added: 'The anticipated increase in capacity is projected to occur predominantly in gas-based thermal power, as opposed to oil, where capacity is expected to remain stable. Manufacturers of gas turbines stand to benefit from this surge in gas-fired power capacity.' GlobalData further said that the climate conditions in the UAE are exceptionally conducive to solar power generation, prompting the government to allocate extensive tracts of undeveloped land for solar parks, including both photovoltaic and concentrated solar power installations. The report added that the UAE has the capability to not only meet local demand using solar energy but also cater to export needs. The country is taking significant steps to bolster its renewable energy capacity, especially solar power, as a core strategy to address climate change. It is targeting a clean energy capacity of 14.2GW by the end of this decade and is planning to invest between $40.84 billion and $54.45 billion to triple renewable energy contribution by 2030. 'Over the past decade, the UAE has experienced a marked increase in electricity demand, necessitating the importation of natural gas from Qatar,' said Saibasan. He added: 'In response to this growing demand and to diversify its energy portfolio, the UAE has strategically shifted away from exclusive dependence on natural gas, expanding into renewable and nuclear energy sectors.' GlobalData further stated that the development of mega urban projects, such as Masdar City and Expo City Dubai, also highlights the need for sustainable energy solutions. 'These smart cities are at the forefront of innovation, yet they also contribute to higher electricity consumption. Consequently, this trend necessitates the expansion of the electrical grid and investment in smart infrastructure to meet the evolving demands,' Saibasan concluded.
Trade Arabia
01-06-2025
- Business
- Trade Arabia
Mubadala, Taqa complete acquisition of 875MW Uzbek power plant
Abu Dhabi sovereign investor Mubadala has announced that it has teamed up with Abu Dhabi National Energy Company (Taqa) for acquiring a gas-fired power generation plant at the Talimarjan Power Complex in Uzbekistan. Mubadala and Taqa each hold a 40% stake in the 875 MW TPP1 combined-cycle gas-fired plant through a newly established project company, Talimarjan Power Plant 1. The 875 MW TPP1 plant has a Power Purchase Agreement (PPA) with JSC 'Uzenergosotish' (UES) (successor power purchaser to National Electric Grid of Uzbekistan (JSC) for 25 years and plays a critical part in meeting demand for electricity in Uzbekistan as the country continues to experience rapid population and economic growth. Both Mubadala and Taqa each have a 40% stake in the Talimarjan Operations & Maintenance (O&M), which was established to operate the plant, while Uzbekistan's 'Talimarjan Issiqlik Elektr Stansiyasi' (TIES) holds the remaining 20% stakes in both the project company and the O&M entity. Hammad Rahman, Head of Asia Pacific Infrastructure at Mubadala, said: "Mubadala is committed to supporting countries across the world to meet their energy needs while reducing carbon emissions. Efficient natural gas-fired powered plants such as TPP1 will play an important part in enabling the transition to cleaner sources of energy." He pointed out that Uzbekistan was recording a significant growth in demand for power, and Mubadala looked forward to working with Taqa and its local partner TIES to ensure communities and businesses across the country have access to reliable, affordable and secure power supply that supports progress and socioeconomic development. Frank Possmeier, Chief Investment Officer, Generation at Taqa, said: "We are pleased to collaborate with Mubadala and TIES in acquiring this vital asset that plays a crucial role in Uzbekistan's journey towards a privatised energy sector." This transaction supports investments into the privatisation of Uzbekistan's power sector. It follows a strategic partnership between the governments of Uzbekistan and the UAE whereby Mubadala and Taqa will bring their global power sector expertise to the local power market in Uzbekistan. "As a low carbon power and water champion, Taqa will leverage its extensive experience and expertise to help Uzbekistan meet its growing energy needs while continuing to invest in this critical sector," he stated. "Our stake in TPP1 demonstrates progress in delivering on our 2030 targets which aim to grow our power generation capacity to 150 GW and strengthens our operation and maintenance capabilities which is also a pivotal element of our strategy. We are committed to enhancing efficiency and ensuring TPP1 runs as a world-class power plant as part of our expanding portfolio as we continue to provide power to the communities we serve," he added.
Bloomberg
20-05-2025
- Business
- Bloomberg
India Shrinks its Gas Fleet as Idle Plants Become Unusable
Follow Bloomberg India on WhatsApp for exclusive content and analysis on what billionaires, businesses and markets are doing. Sign up here. India has phased out about five gigawatts of gas-fired power capacity that became inoperable after being left idle for years, according to people familiar with the matter.
