TNB-EDL ALLIANCE: BOOSTING CROSS-BORDER RE TRADE FROM LAOS WITH THE POTENTIAL TRADE VALUE RANGES…

PRESS RELEASE

S.A. 2023/08/06_43 (HQ)

TNB-EDLALLIANCE: BOOSTING CROSS-BORDER RE TRADE FROM LAOS WITH THE POTENTIAL TRADE VALUE RANGES FROM RM460M AND RM2.3B BEYOND 2030

• To form a Joint Collaboration Committee in exploring opportunities in the energy sector, with a focus on cross-border power trade and human capital development.
• TNB Genco and EDL have inked an MoU to explore potential investment in energy projects in Laos for export.

Tenaga Nasional Berhad (TNB) presented a Letter of Intent (LOI) to Electricite Du Laos (EDL) to forge a collaboration in facilitating cross-border trade and human capital development, as part of TNB's ongoing drive to strengthen the ASEAN Power Grid (APG) interconnectivity and to reinforce TNB Power Generation Sdn Bhd (TNB Genco) presence as the power generation arm in ASEAN countries.

Under the LOI, TNB is keen to form a Joint Collaboration Committee to optimise resource utilisation, bolster energy security, and promote knowledge and expertise sharing through innovative mechanisms for energy exchange, leveraging TNB's educational and research institutions.

This initiative further strengthens TNB's strategic partnerships and the execution strategy with major energy players as TNB Genco-EDL has signed a Memorandum of Understanding (MoU) to explore investment and offtake opportunities for renewable power projects in Laos.

The collaboration will also investigate the feasibility of exporting the renewable power generated in Laos to Malaysia via the Laos-Thailand-Malaysia Power Integration Project (LTM- PIP) or any other arrangements, with a projected trade value of RE export from Laos between RM460 million for 200MW in 2025 and a potential trade value up to RM2.3 billion for 1,000MW beyond 2030.

TNB President and Chief Executive Officer, Dato' Indera Ir. Baharin Din said TNB believes that EDL's influential role in the Laos power sector makes it an ideal partner as the collaborative approach would enable both parties to develop mutually beneficial projects that can capitalise on both strengths. "As the demand for renewable energy sources continues to grow, EDL's influential role in Laos' power sector makes it an ideal partner to explore such opportunities."

Stating the pivotal role of human capital development in sustaining and advancing the energy sector, he said TNB has its own educational and research institutions: TNB Integrated Learning Solution (ILSAS), an institute offering technical training programs; Universiti Tenaga Nasional

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S.A. 2023/08/06_43 (HQ)

(UNITEN), a university providing energy-focused courses; and TNB Research Sdn Bhd, a research house specialising in Research & Development (R&D) expertise.

"By promoting the exchange of expertise and fostering cooperation in research and development, these institutions can create a skilled workforce that drives innovation and tackles industry challenges. This approach can be utilised to encourage knowledge sharing and collaboration between TNB and EDL."

Baharin said, "TNB is ready to be Laos' strategic partner, fostering growth as Laos is the 'Battery of Southeast Asia.' This is also in line with TNB's commitment to meeting its ESG targets, accelerating the Energy Transition and achieving Net Zero emissions by 2050. Besides, TNB is also always open to collaborating with EDL in any other areas of the energy sector."

"In line with our vision, as we seek to provide sustainable energy solutions for the region and beyond, we are also developing various opportunities in renewables and clean energy to capture growing market demand. This partnership will enhance TNB's ongoing drive to strengthen APG interconnectivity and reinforce TNB Genco as the power generation arm of TNB with a presence in ASEAN countries," he concluded.

Released in Kuala Lumpur on 6 August 2023 at 10:00 am

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S.A. 2023/08/06_43 (HQ)

Prime Minister Datuk Seri Anwar Ibrahim (seated, left) and Laos Prime Minister Dr Sonexay Siphandone (seated, right) witnessing the exchange of a Memorandum of Understanding (MoU) and Letter of Intent (LOI) between Tenaga Nasional Berhad (TNB) President and CEO, Dato' Indera Ir. Baharin Din (standing, left) and Electricite Du Laos (EDL) Managing Director, Chantaboun Soukaloun (standing, right) in Laos on 27 June 2023.

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