Tenaga Nasional Bhd (TNB) has signed an agreement to import USD3 billion worth of coal from Indonesia to Malaysia over a period of three years.
The agreement is aimed at ensuring sufficient coal supply, so that TNB’s electricity supply to the country is not disrupted. The deal has been signed with multiple Indonesia-based coal exporters. The initial contract value was USD2.3 billion in 2021 but has increased due to inflating coal prices. TNB imports over 65 per cent of its coal requirements from Indonesia. TNB also imports coal from other countries, including Russia and South Africa, although in smaller quantities. TNB is progressively transitioning to integrate renewable energy such as solar and hydropower, as well as studying the usage of hydrogen, in an attempt to reduce Malaysia’s reliance on coal-generated power and coal imports.