Reveal the consortium which was awarded the right to build 150MW solar scale utility farm

Media Statement by Dr. Ong Kian Ming, MP for Serdang, on the 27th of February, 2016

Reveal the consortium which was awarded the right to build 150MW solar scale utility farm

The decision to award the contract to build a 50MW utility scale solar farm without any tender process to 1MDB Solar Sdn Bhd in May 2014 was highly questionable given that 1MDB did not have any experience in building and operating any solar power plants.[1] This 50MW solar power plant would be the biggest in the country, at the time of writing. It was also reported that 1MDB had been given the right to develop up to utility scale solar farms with up to a 500MW capacity.[2]

The manner in which the contracts to build these utility scale solar farms is totally inconsistent with the manner in which the Feed-in-Tariff (FiT) quotas for small scale solar installations (less than 425kwh) are given out – via open balloting – through the Sustainable Energy Development Authority (SEDA).

It appears that the Ministry for Energy, Green Technology and Water (KeTTHA) has not learned from past lessons. At the end of last month, January 2016, KeTTHA secretary-general Datuk Lo Took Gee, announced that a 150MW utility scale solar farm had been awarded to a “consortium that is financially and technically strong” without disclosing the name of the consortium.[3] This is highly unacceptable from the perspective of disclosure and transparency especially for what a solar farm that is three times the size that was awarded to 1MDB.

One cannot help but wonder if the consortium which was given this 150MW solar farm contract has anything to do with the sale of Edra Global Energy by 1MDB at the end of 2015.

What is equally disappointing is that the SEDA seems to be completely cut off from the process of awarding these utility scale solar farm contracts even though it has the power under the Sustainable Energy Development Authority Act 2011 to advise the Minister on and to implement policies related to renewable energy.[4]

In the interest of transparency, I call upon the Dr. Maximus Ongkili, the Minister for Energy, Green Technology and Water to publicly disclose the identity of the consortium which was awarded the 150MW utility scale solar farm and to ensure that all future utility scale solar farms are awarded via an open tender.

Dr. Ong Kian Ming
Member of Parliament for Serdang

[1] http://www.thestar.com.my/business/business-news/2014/05/05/1mdb-plans-giant-solar-farm-it-is-believed-to-have-formed-a-joint-venture-with-tnb-and-a-us-firm-fo/

[2] http://www.themalaymailonline.com/what-you-think/article/factual-clarification-on-50mw-solar-power-plant-in-kedah-1mdb-dusable-capit

[3] http://www.thestar.com.my/business/business-news/2016/01/27/call-for-more-solar-power-plants/

[4] See Sections 16 & 17 of the SEDA Act 2011

Are we heading towards an energy crisis in 2018 with the delay of Project 4A?

Media Statement by Dr. Ong Kian Ming, MP for Serdang, on the 22nd of June, 2015

It was reported in last weekend’s The Edge Weekly that SIPP Energy was seeking a new partner for Project 4A, after the Energy Commission rejected the proposed tariff submission by the SIPP Energy-TNB consortium which had been awarded this contract via direct negotiation. Without any obvious willing partners for SIPP Energy and with the likely delay of the Project 3B power plants due to 1MDB’s inability to raise the necessary finances to build these plants, it is possible that our country will face a serious energy shortage by 2018.

Continue reading “Are we heading towards an energy crisis in 2018 with the delay of Project 4A?”

The Minister of Energy, Green Technology and Water, Datuk Seri Maximus Ongkili, must compel the full disclosure of Tenaga’s takeover of Project 3B from 1MDB

Media Statement by Dr. Ong Kian Ming, MP for Serdang, on the 20th of June, 2015

During last Thursday’s debate to amend the Electricity Supply Act (1990), I asked Minister of Energy, Green Technology and Water, Datuk Seri Maximus Ongkili, on the latest update on Project 3B, a 2000MW coal fired power plant project which was awarded to 1MDB (70%) and Mitsui (30%). The Energy Commission was supposed to announce the decision sometime in February but no updates had been forthcoming until the Minister’s statement on Thursday.

In his reply, the Minister confirmed that the cabinet had indeed given the approval for TNB to take over Project 3B from 1MDB. He also confirmed that there would be a “small revision” to the power tariff given that the project was already six months late and the exchange rate has changed since the project was first awarded to 1MDB.[1] The Minister did not disclose the terms of purchase of Project 3B by TNB from 1MDB, citing that it was on a “willing-buyer-willing-seller” basis.

Continue reading “The Minister of Energy, Green Technology and Water, Datuk Seri Maximus Ongkili, must compel the full disclosure of Tenaga’s takeover of Project 3B from 1MDB”