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PPA signed for 30 MW project at Tawau, Sabah in Malaysia

Sabah, Malaysia (source: flickr/ onemorebiteblog, creative commons)
Alexander Richter 2 Dec 2011

Malaysian Tawau Green Energy signs PPA for 30 MW geothermal power project with Sabah Electricity for a 21 years timeframe and might start operating by 2014/ 2015.

News from Malaysia report that the country will see the construction of its first geothermal power plant and expects it to come online within the next three years.

“The 30mW plant costing some RM400mil (US$126 million or around $4m per MW installed) would be built and operated by Sabah-based Tawau Green Energy Sdn Bhd (TGE) with the electricity being channelled to the Sabah Electricity Sdn Bhd (SESB) power grid.

State Tourism, Culture and Environment Minister Datuk Masidi Manjun witnessed the signing of a 21-year renewable energy power purchase agreement between TGE and SESB yesterday.

TGE project director Andrew Amaladoss said the geothermal plant would be built on a 20ha site about 20km from Tawau town and adjacent to the Tawau Hills Park.

Amaladoss said TGE would tap geothermal energy by drilling 12 wells to a depth of between 1.8km and 2km.

The hot water from geothermal reservoirs produce high pressure steam to spin a turbine to rotate a generator.

“It is only now that someone has come forward to develop, utilise and commercialise this resource for the benefit of Sabahans,” he added.

Amaladoss said the project was also eligible for carbon credits under the Clean Development Mechanism, Kyoto Protocol of the United Nations Framework Convention on Climate Change.

Compared to other fuels, the carbon footprint of geothermal power is 65 times less than that of coal, 49 times less than that of fossil fuel and 40 times lesser than natural gas.

SESB managing director Baharin Din said it welcomed the project as it would help Sabah diversify its energy sources and power generation apart from reducing the state’s dependence on fossil fuel.”

Source: The Start