RHB Research said TNB should also continue to benefit from the continuous upgrades in transmission and distribution assets.
PETALING JAYA: Analysts are mixed on Tenaga Nasional Bhd
(TNB) following a technical visit to its Chenderoh hydropower plant in Perak.
RHB Research said it has better clarity over the potential of the 2.5GW hybrid hydro-floating solar photovoltaic (HHFS) flagship project under the National Energy Transition Roadmap (NETR) and sees continuous stable returns from hydropower plants following the implementation of the hydro life extension programme (HLEP).
The research house, which kept its “buy” call on the counter, has maintained its earnings estimates and target price of RM16.70.
It said TNB should also continue to benefit from the continuous upgrades in transmission and distribution assets, where energy demand can be anchored by the mushrooming data centre developments.
The utility’s unit, TNB Power Generation Sdn Bhd, has a total contracted capacity of 13.8GW, of which 11.2GW is thermal capacity, followed by 2.5GW of hydropower.
The 2.5GW HHFS flagship project under the NETR will be constructed in phases between 2026 and 2040.
AmInvestment Bank Research, on the other hand, maintained its “hold” on TNB with an unchanged discounted cash flow-based fair value of RM14.55 per share.
It said Chenderoh was chosen to be the first hydropower plant to have floating solar as it has a large land area and tarred roads.
It added that floating solar costs 15% to 20% more than solar farms on the ground due to the anchoring and mooring systems.
The cost of a floating solar plant is estimated at RM3mil per MW.
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