Good afternoon, everyone. Welcome and thank you for joining TNB Investor Relations first webinar series. Today's session is titled "Harnessing Malaysia Renewable Energy Potential: Hybrid Hydro-Floating Solar (HHFS) and Hydro Life Extension Programme (HLEP)." This webinar forms part of our ongoing engagement initiatives with the investment community, providing a platform for you to hear directly from the subject matter experts and gain deeper insights into these two key renewable energy initiatives. We are pleased to have two representatives from TNB with us today. Allow me to briefly introduce them. Our first speaker is Puan Shahrina Abdullah, Project Manager for Hybrid Hydro-Floating Solar at TNB Genco. With over 25 years of experience across power generation, renewable energy, and strategic project management, she leads the development and execution of TNB Genco's HHFS initiatives.
Her extensive experience in project development, commercial strategy, and renewable energy makes her well-placed to share insights on TNB's approach to advancing Malaysia energy transition. Our second speaker is Technologist Norfaizah Mohamad Yusof, Head Project Management at TNB Genco. She currently leads the project management function where she oversees project planning, execution, coordination, performance monitoring, stakeholder engagement, and project governance supporting the successful delivery of major power generation and energy infrastructure projects. She brings extensive experience in managing complex engineering and power generation projects with strong expertise in strategic project management, technical coordination, project delivery, and stakeholder management. We are also pleased to have Puan Nura Nadia Abd Hadi, Head of Investor Relations. We are delighted to have all three of them with us today. Before we begin, just a quick note on the flow of today's webinar.
We will first hear from both of our speakers, followed by a Q&A session at the end of the presentations. Throughout the session, we encourage you to submit your questions via Slido, and we will address the question during the Q&A session at the end of the presentations. With that, it is my pleasure to invite Puan Nura Nadia, Head of Investor Relations, to deliver the opening remarks. Nadia, over to you.
Thank you, [Trace]. Good afternoon, everyone. Thank you for joining the maiden sessions of TNB's IR webinar series. We are delighted to have this opportunity to engage directly with investors, and also we are taking today a closer look at the two pivotal renewable energy developments under TNB Genco, the Hybrid Hydro-Floating Solar, HHFS project, and the Hydro Life Extension Programme, HLEP. Before we unpack these projects, let me offer a brief overview of TNB Genco and its strategic role within the broader group. As a core driver of TNB's power generation portfolio, Genco maintains a robust foundation across conventional and RE assets, anchored significantly by our hydro infrastructure. As Malaysia energy landscape evolves, our TNB Genco is uniquely positioned to spearhead the nation's ET while unlocking long-term value.
We see clear momentum across several key avenues: expanding the renewable generation, optimizing our legacy assets, advancing energy storage, and deploying clean energy solutions. This focus area allows TNB Genco to leverage its existing infrastructure and technical expertise to meet growing national power demand while decarbonizing our fleet. HHFS and HLEP precisely exemplify this dual strategy, building on our established operational strength while pioneering sustainable generation models. We are privileged to be joined today by the subject matter experts directly leading these two initiatives, who will share deeper operational and strategic insights. I trust today's session will give you a clear view of how these projects advance TNB Genco growth roadmap. Without further ado, let me pass the floor to our speakers. Thank you, and I hope you find the session insightful.
Okay. All right. Salam and good afternoon to all, and a very warm welcome to the first of our investor session webinar series for the year 2026, I guess. Okay. Our theme today is, harnessing the Malaysia renewable energy potential. We in TNB are incredibly excited to share a landmark milestone in our journey towards sustainability, where the development of our first hybrid hydro-floating solar initiative, featuring an integrated battery energy storage system. Specifically today, we will dive deep into the overall development framework and provide an exclusive status update for our flagship project, that is Kenyir 1. Let me begin by looking at the bigger national picture that drives this ambition. Okay. Next.
As many of you all know, Malaysia has set a bold and clear path forward under the NETR, National Energy Transition Roadmap, that was introduced by the Ministry of Economy way back in 2023, where our nation aspires to achieve 70% renewable energy mix by the year 2050. Okay? The core goal here is a profound structure shift, moving Malaysia from traditional, fossil- fuel- based economy towards the high-value green economy. To make a vision this large a reality, it takes massive action. With that, they have enlisted 10 flagship projects under energy transition projects under the NETR. We in TNB Genco have been entrusted to spearhead the 2.5- GW hybrid hydro-floating solar initiative.
By utilizing private investment and strategic collaboration, we are creating a cleaner, more flexible, and highly reliable alternative to the traditional coal conventional way, reducing our reliance on gas and balancing our water reservoir potential across both dry and wet seasons. Next, I will be explaining our HHFS roadmap. It is designed to bridge the TNB legacy engineering infrastructure with our future net zero target. Here, to achieve our 2.5 GW potential, we have thoroughly evaluated and shortlisted eight specific projects across six major reservoirs in Peninsular Malaysia that are in Temenggor, Kenering, and Bersia, Nenggiri in Kelantan, and Kenyir and Puah in Terengganu. By pairing floating solar arrays directly to our existing hydropower assets, we unlock unprecedented operational synergies, and today we are focusing on our absolute frontrunner in this journey, that is Tasik Kenyir. All right. Next, we move into Tasik Kenyir potential.
Tasik Kenyir is Malaysia's largest man-made lake, making it the perfect natural hub for a multi-phase renewable energy development. When we look at the numbers, the sheer scale is very impressive, yet our environmental footprint remains incredibly minimal. Tasik Kenyir spans a total area of 36,900 hectares. The total project development area for our Kenyir 1 specifically requires just 1,100 hectares at large and 522 hectares specific area to the solar installation. That means we are utilizing merely 1.41% or less than 2% of the lake's total water body area. That's how small we're going to embed the water body with the solar panels and then leaving the vast majority of the ecosystem completely untouched. This Kenyir 1 is targeting the commercial operation date in 2028.
We target in quarter four, and then it will deliver 595 MWac of floating solar capacity backed by a massive 1,190 MWh of battery energy storage to be co-located at site in Kenyir. Next, we move on to the project concept. How exactly does this engineering marvel work? The core concept is to maximize underutilized space on our hydro dam water bodies, effectively eliminating the need for extensive land clearing. We are looking for alternatives rather than using the land. We are installing tier one brands from OEM, highly efficiency solar PV modules mounted onto durable floating food-grade platforms. The direct current generated by this panel will flow to string inverters and convert it to the alternating current, and from there, underwater and subsea power cables safely transport the electricity to onshore facilities and into the national grid.
To ensure the system handles the natural movement of the water, a robust anchoring and mooring system will secure the floating arrays firmly to the lake bed. Finally, our integrated BESS, battery energy storage, will balance the energy output, making the solar power reliable and dispatchable even when the sun isn't shining. We will share with you the project concept video, and this is to give you a visual sense of how the Hybrid Hydro-Floating Solar project will work. This video will show you the concept from assembling the panels and process on site right through the connection to grid.
As Malaysia strives towards a sustainable future, the challenge of meeting its energy needs sustainably is more pressing than ever. In the serene expanses of Terengganu at Kenyir Lake, a bold initiative takes shape. The Hybrid-Hydro Floating Solar Photovoltaic project aims to redefine renewable energy in Malaysia with a total capacity of 2,000 MW, making it the first of its kind in Southeast Asia. Aligned with the National Energy Transition Roadmap, NETR, which targets 70% renewable energy by 2035, this project is pivotal to Malaysia's clean energy goals. By 2025, TNB aims to achieve a working capacity of 630 MW. The project is divided into three strategic phases. The first phase will deliver 400 MW, followed by the second phase at 600 MW, and the third phase at 1,000 MW. This phased approach ensures the steady and sustainable expansion of renewable energy.
This cutting-edge project utilizes UV-resistant and engaging floating structures designed to withstand environmental stress. Each part, from brackets to bolts, ensures durability and efficient maintenance access. By covering the water surface with solar panels, the project not only generates clean energy but also preserves precious land for agriculture and reduces evaporation, securing water resources for future generations. The harvested solar energy, initially in direct current, is transformed into alternating current through advanced centralized inverters housed in the control building. This process seamlessly integrates the energy into the national grid, contributing to the renewable energy sector and supporting the Sustainable Development Goal 7 of ensuring access to affordable, reliable, sustainable, and modern energy for all. Strategically positioned, the solar arrays leverage the cooling effects of the water to boost their efficiency and longevity, while also stimulating Terengganu's economy through job creation.
This project is key to achieving Malaysia's goal of a 70% renewable energy mix by 2050, promoting environmental sustainability alongside economic growth. The HHFS project is more than just an energy solution. It's a commitment to environmental stewardship and community engagement, ensuring that development does not come at the cost of nature or local livelihoods. Join us as we journey towards a sustainable future. The vision is to lead with a flagship project, the 2.5-GW Hybrid Hydro-Floating Solar initiative across all TNB hydro reservoirs, starting with Kenyir Lake. One innovative project at a time, we are shaping a brighter and cleaner tomorrow. Brought to you by TNB Genco.
Okay. Can we move on to the next slide? In the next slide, we will take a closer look at the layout and delivery scope of the Kenyir 1 project, which is officially now the first utility-scale Hybrid Hydro-Floating Solar, and the first and the largest in Southeast Asia to date. This project is integrated with BESS, as I mentioned before. This project will operate under CRESS, Corporate Renewable Energy Supply Scheme framework. To give you idea on how extensive on the logistic delivering and installation later on, this project we will be dealing with 1.1 million solar panels. This one together for 595 MWac , 785 MWp, and 1,190 MWh battery. Adding to that is 1.1 million floating units, which will be arranged into 64 distinct floating islands. Technically, this will be put in the 522 hectares of lake area.
With that, we need 1,700 string inverters, 9,000 anchors and mooring blocks to be dropped into the water, and 210 specialized battery containers with 6- MW capacity each. Geographically, the project is divided into five distinct zones. Zone 1 is primarily floating solar area covering 522 hectares. Zone 2, housing the onshore plant interface and BESS facility, about 6.14 hectares. Zone 3 will handle the 275 kV Park plan interconnection over 53 hectares of land, which will hook directly into the Zone 4 into the PMU Hulu Terengganu. This Zone 3 and Zone 4 will require about 56 hectares of land. Zone 5, lastly, consists of 6 hectares dedicated to temporary facilities and observation deck and our jetty laydown and launching platform. This Zone 6 will be give back to the state government after the project completion.
Next is the project structure and the milestone. Project of this magnitude require a world-class collaboration framework. We have brought together the ideal mix of public strength, corporate commitment, and technical expertise into this project. The SPV for this project is called TI TNB GENCO Solar Kenyir 1 Sendirian Berhad, or short form is [TGSK 1]. That is the SPV for this project. This is a powerful joint venture combining TNB Genco technical capabilities with Terengganu Incorporated's local strength and state support. For this project, we got TI to be on board with us with 70/30 equity portion, 70% to TNB Genco and 30% to TI. This project operates on 100% energy payment take-or-pay model via a CRESS mechanism, where this providing us with rock solid, highly predictable long-term revenue. It is 21 years.
On the engineering front, a full turnkey EPCC contract has been awarded to a known and experienced consortium composed of Cypark Renewable Energy and Fabulous Sunview Sendirian Berhad with a 24-month execution timeline. As you can see from the milestone, we moved from our initial MoU in 2023, where we first started talking about the potential of developing of such project in Kenyir. Then we moved through the master collaboration agreement in May 2025. Then recently, we signed our shareholders' agreement in June 2026, this year. With our PESC and EPCC documents fully executed at the KL Convention Center recently, Kenyir 1 is now officially moving into full steam ahead into its operational delivery phase. Going to next. Now I am at the end of my presentation.
As we conclude, let's summarize why Kenyir 1 is such a vital asset for our portfolio and for Malaysia as a whole. First, as a flagship project, this project, Kenyir 1, established a world-class reference point for large scale utility solar with hybrid combination with BESS. Secondly, it directly supports the national goals, keeping Malaysia firmly on track for 70% RE by 2050. Thirdly, it brings incredible social economic benefits, generating clean energy jobs and empowering local contractors right here in Terengganu. We have spared at least 15%-30% of the job for local Terengganu. Nationally, it advances our energy security and positions Malaysia as a clean energy leader within the Asian region. From the investment perspective, it strengthens our long-term financial performance by generating sustainable, recurring profitable over 21 years operating life. Finally, the environmental impact is profound.
Kenyir 1 will avoid approximately 650,000 tons of CO2 emission annually while generating clean, green electricity for roughly 242,000 households if you convert into household usage. This is more than just an energy asset. It's a blueprint for the future of sustainable infrastructure. With that, thank you very much for your time and your continued trust in TNB Genco as we power the nation's green transition. I'll see you in FAQ later. Thank you.
Thank you, Puan Shahrina. We will now move on to our second presentation focusing on the Hydro Life Extension Programme, HLEP. With this, I am pleased to invite Technologist Norfaizah Mohamad Yusof for your presentation.
[Non-English content] and good afternoon to all. Thank you, organizing committee, for inviting me to present in this first ever IR webinar series. Before I continue with the presentation, let me just introduce myself again. My name is Norfaizah Mohd Yusof. I am the Head of Project Management in TNB Genco. Basically, my role is as a PMO. Therefore, overseeing several projects in TNB Genco, covering projects under execution and also projects that are still under development. Let me just proceed with my presentation. Today I will Hydro Life Extension Programme, also known as HLEP for SSJ Sungai Perak. I intend to walk you through, starting from touching a little bit about the power station and followed by the project, covering the scope, the technology implementation for the project, and the project key timeline. Basically, the unit COD five years until its full completion. I will also highlight the benefit of this project and also the investment.
There are five power stations that operate under SSJ Sungai Perak scheme, which are involved in this life extension programme, namely SJ Temenggor, SJ Bersia, SJ Kenering, SJ Chenderoh, and SSJ Sungai Piah. Temenggor contributes majority of the megawatt more all, which is approximately 350 MW from the four generating units. The station has already been in operation up to 40 years. On the PPA, the original PPA has expired in August 2022, and we have been given five years extension until August 2027. Let me proceed with the project scope. As previously highlighted, the HLEP Sungai Perak project involves five stations under Sungai Perak scheme. Cascading along the Sungai Perak, namely Temenggor, Bersia, Kenering, and Chenderoh. For Sungai Piah, upper and lower station, it flows into the Kenering Reservoir prior to the flow to the Sungai Perak.
There are a total of 18 generating units covering 648 MW. The pre-assessment of the asset was done in 2017. The ECS has been appointed. ECS means Engineering Consulting Services, has been appointed in 2019 to further assess the condition and come up with the technical requirement and also estimated cost for the EPC contract. The project has commenced in November 2024. The contractor has been awarded based on the packages. Why now? First and foremost is to sustain the RE generation utilizing hydro assets. For that, it is a need to address the aging and obsolete system equipment and also to improve the performance. The project will be delivered unit by unit.
It is planned based on each unit outage plan, a total of 648 MW. About 190 MW will be delivered in 2028, 450 MW in 2030, and finally 648 MW in 2033. The main scope for HLEP project is to replace and rehabilitate the key generating equipment and also improve the civil and structure works. The turbine technology used in each of power plant, which are Kaplan, Francis, and Pelton type. What is the value and benefit of doing life extension program to us? Basically, it is supporting the NETR and also TNB net zero emission 2050 aspiration by producing green electron through hydro system. By extending the PPA, we can continue producing green electron for another 40 years.
For that, we need to address the aging plant, including generating units and civil structure to ensure the operability and maintainability of the plant, increase the safety and reliability of the dam and also the equipment, and to increase the performance and efficiency. Lastly is to ensure the compliance with the grid code requirement and also regulatory obligation. This is the last slide. The whole idea of the investment is this HLEP program is to sustain long-term generation of green electricity and at the same time contributing revenue to TNB Genco and groups. We expect to continue producing power for another 40 years under the new PPA. As of June 2026, you can see the progress is about 36%, and we are targeting the first unit to be COD in December 2026. Okay. That's all for now. I pass back the session to the organizer.
Okay. Thank you for the presentation. Also thank you for Shahrina and Technologist Norfaizah for your presentation. This brings us to the final segment of today's webinar, the Q&A session. We have received a number of questions from participants during the registration process, and we will begin by addressing the pre-submitted questions first. Allow me to go through the questions. The first question from Ahmad Maghfur Usman from Nomura. What is the project IRR for this solar asset?
Maybe I can take that. Quite common questions from our investors and analysts, really. The IRR for our RE project basically is always on the high single-digit range. That is our guidance.
Okay. Thank you for that, Nura Nadia. The second question is from Mohammed Redza Abdul Rahman from BIMB Securities. Expansion plan to other hydropower plants, including plans for BESS inclusive, for example, tariff, fixed or variable commercial structure.
Okay. Hi, Redza. For TNB Genco, we are exploring all the opportunities to expand the HHFS technology to other suitable hydro reservoirs. As mentioned before, we are talking about Temenggor, Kenering, Bersia, and Nenggiri. The integration of BESS, for now, is part of CRESS and it is a requirement from CRESS. It must be considered where the application or the installation will be enhancing the flexibility and reliability of the overall renewable energy system. The commercial structure, including the applicable tariff, and offtake arrangement, will be determined based on the prevailing regulatory CRESS framework and project economics, and also direct nego with the green consumers.
Okay. Thank you for sharing. The next question is from [David N g] from Hong Leong Investment Bank. [David] has two questions. First is: Is HHFS considered part of the LSS program?
Okay. Generally, yes, but for this LSS6, they already outlined. If you read clearly in the LSS6 document, they already outlined the interconnection that allowable to be connected for LSS6. They also focus on the region for the installation. For now, they focus in the southern region and also central region. With that, since our HHFS potential already located in the northern and also eastern region, we will not join the LSS6 program.
The next question from [David] also. What are the CapEx and OpEx for HHFS versus ground-mounted solar?
Okay. When we are talking about CapEx and investment required for floating solar, generally it is always slightly higher than ground-mounted. Okay? Because it requires more equipment such as floaters, anchoring, and mooring. This floating solar, generally new technology, still on learning curve, so the price is still on the high side now. In percentage, normally it ranges around 10%-15% higher than ground-mounted. Okay. For OpEx, the expenditure depends on the technology adopted, project configuration, and also site-specific requirement. Ultimately, the CapEx and OpEx comparison will vary from project to project, and we assess the overall economic based on the specific sites and configuration. Okay.
Okay. We have the last pre-submitted question from [Huen from Aspen Group]. Is there any local player experienced enough to undertake large-scale HHFS projects without an overseas partner?
When you talk about a large scale HHFS, this is the first, as mentioned before. Everybody knows that overseas EPCC players are dominating the EPCC for this HHFS before, mainly from China. We have our local player, few local players actually, that already involved in installation of hybrid and also small scale floating solar. As you all know, the EPCC awarded for this Kenyir 1 project also to local players. Both of them are local players. One, they have experience with small local floating, and the other one is the prominent EPC for solar projects. With the combination of both, will work for this Kenyir 1 project.
That is all for the pre-submitted questions. We will now move on to the questions received through Slido during the session. Without further ado, let's move on to our first question. We received a question from Hazmy Hazin from CLSA. DayOne is the first DC who embarked in this solar program with TNB. Is there any push for other DCs to follow suit? Any requirement imposed to upcoming DCs to have renewable energy as part of their projects?
I think this one I can take, Hazin. Thanks for the question. Basically, yes, there is growing push for the new DC operator to come and incorporate the RE basically. There's a new policy for data center by our DCTF. Just recently, the RE usage must be at least 30% of green for the data center. So they have options to participate in that program such as CRESS and also on-site generation.
Hazmy also have a follow-up question, the second question. Any other sites in Malaysia that are feasible to implement the hybrid floating solar as well?
You mean other than the sites that I already mentioned, we have other smaller, below 100 megawatt potential based on due diligence. Later on, we will explore those smaller capacity hydro dams and hydro areas for the development as well.
Okay. Thank you for the response. Moving on to our next question. We have a question from [Geetha Ravindran] from EPF. The question is, could you expand on the biodiversity impact of the HHFS, and how is TNB mitigating the negative impacts of floating solar, such as lower dissolved oxygen levels and reduced sunlight penetration in the lake?
Okay. [Geetha] from EPF, thank you for the question. I would like to put you into different perspective. Rather than looking into the negative impact of this, I will bring you the key benefits of having floating solar on the hydro dams, based on our EIA study. This is not picked up from sky, but this is based on study. Technically, what we call the key benefits, we have about five. One is particularly on the dissolved oxygen level and reduced sunlight penetration in the lake. Okay, if you are talking about the impact to the fish or impact to the underwater, what we call, fauna.
Fauna.
Fauna.
Fauna. Okay. It has been, what we call, studies and result that there is a positive impact rather than negative impact for the fish, the amount of fish and the size of fish in the lake as compared to the negative aquatic impact to the fishing in the lake. The other one is the plus point on the zero land conflict. This one, no-brainer. You put the stand-alone solar, you require what? A piece of land. When you put underutilized water surface, you are optimizing and preserving the land ecosystem entirely. So that is my answer for this. Okay.
All right. Next, we have a question from [Lex Casada]. The question is under HHFS. Does DayOne's existing signed CRESS project qualify to migrate or be admitted into the CRESS acceleration package? Example, MYR 0.40 per kilowatt hour SAC.
Okay. There's one segment or conditions for the CRESS acceleration package. The project must be delivered by end of 2028. As of today, the COD targeted is matched with this CRESS acceleration package. But then it all depends on the latest COD date. As you all know, this CRESS acceleration package is to, what we call that?
Expedite.
To expedite. To expedite and if there is any projects which have high potential for faster COD than 2028.
Okay. Thank you. We have a next question also from Slido, from [Hidayah Razik]. Will there be a premium on the PPA tariff since the CapEx requirement is higher?
Okay. The new PPA tariff for 14 years covering the CapEx and OpEx of the projects and also give the return to TNB.
All right. Thank you. We have another one question from [Huen]. I think this is a follow-up question. Could you elaborate on how the EPCC contractors were selected for HHFS projects? Some of the appointed contractors appear to have limited experience in delivering projects of this scale, while in some due case, there may also be questions around working capital and funding requirements.
Okay. The selection process for the EPCC contractors for this project were selected through a very competitive and thorough vendor process, which conducted in accordance with TNB established procurement and governance requirements. We have looked into all angles that we should cover and then they offer the best technically and commercially.
Thank you, Shahrina. Just a quick note, for those who have answered, we appreciate it if you can put your name and also your company together in question. The next question we have from Noah, Khazanah Nasional Berhad. What are the largest costs and barriers for scaling HHFS projects in the future? Is it securing of takers?
Okay. Thanks, Noah, for the question. Securing of takers was our main problem in the last three years, since 2003 until 2005. Now the perspective and also the environment has changed. The DC is coming for us to get at least 30% of the green energy for their data centers. Technically, the scenario has changed now, and we are happy for that. I think that's all.
All right. Thank you. From Slido also, we have the next question from Max, RHB. Is the 1.5-GW agreement signed with DayOne last month part of this 2.5-GW HHFS capacity?
Yes.
Is the one mainly on site?
Yes. It is considered as part of 2.5-GW HHFS capacity. TNB has entered into agreement with DayOne. We signed the bilateral energy supply contract under the CRESS program. For that 1.5-GW p, it is a combination from hybrid hydro-floating solar and also ground-mounted solar, both under TNB.
Okay. All right. We have a follow-up question from [Lex]. This under HLEP. Is there any plan or progress for Kenyir HLEP?
Oh, okay. Thanks, [Lex]. Basically, yes, TNB is exploring potential HLEP in Kenyir. Basically, currently the EPC tender has been in progress.
All right. We are still waiting for other question. If you have any question, please submit your question via Slido. We will address the question. Just appreciate if you can put your name and also your company together with your question.
We got more questions. [Non-English content]
I think we can take few questions coming in. Let us read the first question. Next, we have question from [Hani], Khazanah. The current HHFS pipeline appears to leverage TNB's existing hydro reservoir. Have you considered developing HHFS on new water bodies or greenfield reservoir? If so, what would determine whether that versus simply developing standalone hydro type storage or floating solar?
Have you considered developing HHFS only greenfield reservoir, not on hydro existing?
Okay. As TNB Bank and TNB at large, yes, there is what we call, we are considering for pump storage hydro on top of floating solar. That one will be greenfield, I guess, greenfield reservoir for the pump storage hydroelectric. And then other than that, standalone hydro, can we consider Nenggiri? The new Nenggiri project as the new greenfield reservoir because now in the development stage. And also we will put HHFS Nenggiri on top of the Nenggiri reservoir later.
All right. We have another question from [Hassin]. Can you elaborate how will the SAC be during the tenure of the 21-year PPA fixed MYR 0.14 per kilowatt hour throughout under CRESS acceleration package?
Okay. This CRESS acceleration package is only for 10 years, for the period of the first 10 years. It sweeps at the rate of MYR 0.40. We do not know yet what is the SAC rate for the next 11 years. So for now, the project must achieve the COD by December 2028, failing so RE developer will no longer eligible and will be subjected to the prevailing CRESS SAC rates and terms applicable during the RSP by considering 24 months of project development. That is just the, what we call, the catch for that. The catch for that. Okay.
All right. Thank you. We also have another question from [Azri], EPF: Could you elaborate the financing structure for HHFS project, for example, debt and equity, and what is the size and timeline for the fundraising exercise?
Okay, for this particular project, we are looking at 80/20 debt-to-equity structure. Fundraising probably based on the project progress. Timeline based on project progress. Okay. Right. Therefore, any other questions?
That is the question. If you have any question, please feel free to submit via Slido, and we will try to take the question.
Maybe on the Q&A, yeah.
Next follow-up question from Max, RHB: Assuming if TNB completes the projects and qualifies for acceleration package, will the lower SAC be passed on to off-taker?
I am not sure. Let us do a quick recap of Max's questions. Completes the project and qualifies for acceleration package. For this one, we already signed with the off-taker, the green off-taker earlier this year, and the lower SAC passed on to the off-taker for now. But it all depends on the negotiation between us, the RE developer, and the green consumer. Yeah.
Okay. We have received quite a number of questions today, so given the remaining time, maybe we can take another one question. Is there any question?
We have about slightly under 10 minutes. Should you have further questions, feel free to do so via Slido. If we don't have time, we'll entertain the question through our official IR department email later after the session. Let's give the participants one last round before we wrap up today's session.
Maybe we have time for one question.
Yeah. On the technical project request.
Let's take from [Azri], EPF. Okay. We have a question from [Azri] from EPF: With TNB currently having constructing solar facility in Kuala Muda, for example, in Kuala Muda, do you foresee any issues in procuring solar panels as [inaudible] has acquired approximately 1.1 million solar panels?
I guess you are asking for TNB to procure our solar panel on our own, right? Okay, we have done our, for the lack of a better word, techno-economic study. We have made comparison between multi-package, where we procure on our own for the solar panel, or we put it under the full turnkey EPC. For our project in particular the techno-economics is slightly better if we put under the turnkey EPC. That's the determination for our division so far.
Right.
Okay. Thank you, Puan Shahrina, Technologist Norfaizah , and also Puan Nura Nadia for taking the time to address the question and for sharing your insight with us today. Ladies and gentlemen, thank you for your question. That is all the time we have for Q&A session today. Due to some constraints, we are unable to take any more questions. If you require further clarification or inquiries, feel free to contact our investor relation offices or email us at TNBTenaga_IRD@TNB.com.my. With that, we have come to the end of today's webinar. On behalf of TNB Investor Relations, I would like to extend our sincere appreciation to Puan Shahrina Abdullah and Technologist Norfaizah Mohamad Yusof for sharing their valuable insight and expertise with us today.
We would also like to thank everyone from the investment community for taking the time to join us and for your continued interest in TNB. This concludes our first TNB Investor Relations Webinar Series session. We look forward to bringing you more sessions and opportunities to engage with our subject matter expert in the future. We hope you will join us again in our upcoming session. Thank you once again. Have a pleasant evening, and we look forward to connecting with you again and have a wonderful day. Thank you.
Thank you. Bye.