The Energy Commission of Malaysia has selected a consortium comprising SIPP Energy (SIPP), YTL Power International (YTL) and Tenaga Nasional (TNB) for the construction of a combined cycle power plant (CCGT) in Pasir Gudang, Johor.

Under the contract, the consortium will develop the fast-track CCGT with a capacity of 1,000MW – 1,400MW in Pasir Gudang, Johor, using proven technology.

The plant must be constructed on the condition that the technical and commercial proposals are acceptable to the Energy Commission.

Additionally, the levelised tariff, which could be considered competitive, has to be comparable to the Prai CCGT tender exercise concluded in 2012.

Since 2010, in consultation with the Minister of Energy, Green Technology and Water selected three procurement methods aimed to secure new generation capacity to meet the increasing demand for electricity.

The three methods include direct award, restricted bidding and open bidding exercises.

The EC has made the conditional offer after its decision that there was a requirement to fast-track plant construction for operational in 2020 to an earlier date in 2018.

In addition to using only proven gas turbine (GT) technology to ensure all GT manufacturers could participate in the tender, the commission would evaluate the EPC tender.