TNEC: WE COOL YOUR PROPERTIES – BETTER AND CHEAPER

Presented by:

Ir. Mahathir Nor bin Ismail Managing Director TNB Engineering Corporation Sdn. Bhd. 1701, Level 17, Block B, Menara Amcorp, 18, Persiaran Barat, Peti Surat 152, Jalan Sultan, 46000 Petaling Jaya, Darul Ehsan

September 2019

1 About Us – TNB Engineering Corporation Sdn. Bhd. (TNEC)

• TNEC is a wholly-owned subsidiary of A preferred and leading service TNB, which is the largest electricity utility in provider in energy related projects in and a leading utility company in Malaysia Asia

• Established since 1993, TNEC is We involve in designing, procuring, constructing, operating and supported by the wide experience, maintaining as well as financing of knowledge and capability of the TNB various energy-related projects Group of Companies Our main energy-related business includes • TNEC has established a strong bond and BOO/BOT of District Cooling System relationship with various industry players (DCS) /Cogen, Large Scale Solar (LSS), and stakeholders over the years Distribution Services (DS), Energy Management System (EMS) • This very relationship has been the driving Our clients / successful projects include: force behind the company’s surge • DCS - KLIA2, UKM, IJN, Pantai, MBSA forward in securing energy-related • LSS – Sepang Solar, Leader Energy projects and fulfilling customer demands • DS – SESB, TNB Distribution • EMS - UNITEN • TNEC is now one of the preferred partner for energy-related projects in Malaysia We are supported by: • More than 160 manpower

• Strong network and reliable business • Our Strategic Objective – To be amongst partners in various fields the leading service providers in the • Proven performance and track record regional energy business

2 * BOO: Build, Operate and Own BOT: Build, Operate and Transfer ** MUSCO: Multi Utilities Services Company

Transformative forces are reshaping the entire energy landscape, including the cooling energy business

Similarities Between District Cooling Plant and Electrical Power Plant – Producing Energy!

Cooling Cooling Energy Energy

District Cooling Plant Network Pipeline Property

Electrical Electrical Energy Energy

Electrical Power Plant Transmission Line Property

GENERATION TRANSMISSION DISTRIBUTION

3 TNEC, with its vast experiences, has collaborated and developed many successful district cooling projects, and is recognized as one of the leading players in the countries’ cooling energy industry

TNEC’s Major District Cooling System (DCS) Projects

BMC and Al Reef DCS Plants in Abu Dhabi KLIA2 Plant 1Borneo Hypermall, IJN Plant

DCS Projects/solutions we work in MBSA Plant

EPC BOO Overseas 15% UKM Plant 36% UiTM

Pantai / BES Plant MINT

BOT 35% EPC Local 14%

4 Our Experiences and Track Record

DCS/TES INSTALLATION BY TNEC

KLIA-2 DCS (20,000 RT) & 132kV substation (Electricity capacity – 25MW)

UiTM Medical & Dentistry Faculties Complex, Sg Buloh EPC 3,900 RT Building Materials City DCS, Abu Dhabi, UAE 30,000 RT Al Reef Downtown DCS, Abu Dhabi. UAE 8,000 RT

UiTM Shah Alam UKM LOOP 2 District 4,680 RT Cooling Plant TES Plant O&M (Capacity – 4,500 RT) 5 How we deliver the benefits of DCS to the industry and clients…..

What is DCS? “Smart and economical means of providing chilled-water (for air-conditioning) through a central plant serving multiple buildings or a huge development.”

Major benefits of a centralised system: • Smaller plant capacity – lower investment • Improved plant control and monitoring functions • Lower maintenance costs (less quantity of chillers/equipment on aggregate basis) • Extra building space for other uses • Higher efficiency, less CO2 emissions

TNEC’s value proposition (development): • Flexible scheme e.g. EPC, BOO, BOT • One-stop center- study, design to implementation • Co-development, collaboration & partnership • Financing flexibility, funding solutions • Efficient chiller with smart demand response • Personalised and managed services using digital platforms

7 How we deliver additional benefits of a DCS + Thermal Energy Storage (TES) technologies….

What is TES? “TES is the storage of cooling energy during low air conditioning load period (i.e. off-peak hours) and the energy is released and used during peak hours via circulating chilled- water onto the buildings”

Major benefits of a DCS + TES: • Lower electricity/production cost • Reduce electricity peak demand – help to lower grid system stress • Enhance energy management - lower CO2 • Opportunity to integrate with other sustainable forms of energy e.g. solar

TNEC’s value proposition (O&M): Discharge 1000 • Flexible scheme e.g. BOO, BOT Direct Production 800 • Collaboration & partnership via comprehensive Charge 600 O&M agreement • Savings via performance contracting 400 200

• O&M experience and skill sharing kW of refrigeration • Generation optimization, performance reporting 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 • Manage performance using digital platforms Hours

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Contact Details: Ir. Mahathir Nor bin Ismail Managing Director

TNB Engineering Corporation Sdn Bhd 1701, Level 17, Block B, Menara Amcorp, 18, Persiaran Barat, Peti Surat 152, Jalan Sultan, 46000 Petaling Jaya, Selangor Darul Ehsan

T : +603 7958 2121 F : +603 7958 2626 E : [email protected]

9 Under the transformation journey, TNEC has diversified its business and will continue to expand and evolve towards sustainability

Renewable Energy and Energy Efficiency (RE&EE) initiatives are our focus areas and we will continue to collaborate with various stakeholders towards achieving sustainability and addressing climate change

District Large Scale Power Cogeneration / Energy Cooling Solar System Distribution Waste Heat Management, Cluster Cooling Systems / (Sepang, K.Muda, System and Recovery and MUSCO Chiller Plants Bkt Selambau) Services Systems

(IJN, MBSA, BES, (Perak, Selangor, (Chemical, Glove) KLIA2, UKM) Sabah) (UNITEN, CIMB)

Evolve Embrace Digitalization (ABC) Expand (Analytics, Big Data, Cloud/Connect)

10 Our Experiences and Track Record (DCS and TES)

DCS/TES INSTALLATION BY TNEC

UKM DCS 3,700 RT The 1st District Cooling Malaysia Institute Of Bangsar Energy System 12,300 RT In Malaysia Nuclear Technology The 3rd Largest TES System (Energy Award Winner) (Energy Award Winner) In Malaysia (1999) 1,500 RT (2001) (1997)

1Borneo Hypermall District IJN District Cooling MBSA DCS (2006) Cooling, 5,670 (2008) RT (2008) 11 Why Us - TNEC has established itself as a leader in the cooling energy sector and has delivered a number of solutions and innovation to its clients

Key components of our deliverables

Lower Carbon Footprint

Enhance Lower Asset Value Energy Cost Improve Adopt Energy Clean and Supply and New Security Technology Enhance Image

Control and Flexibility

12 Why Us - Our Core Strengths

Provide a comprehensive full Good track record and service EPC at a performance competitive price • Established since 1993 • Covers both upstream (EPC + financing) and downstream (O&M) We possess excellent network + associates • Access to TNB’s global network and expertise • Reliable and established business partners, sub-contractors, Embrace good financiers Locally based + value- governance and added services integrity • Delivery of high quality and effective solutions • Additional consultancy Excellent Teams – and advisory services Experienced, qualified, professionals

13 Our Company Profile and Experiences

o Incorporated 1993 BOOT/BOO Project for DCS Plant o Paid Up RM 4 mil (in Operation) o CIDB status • BES, Bangsar : 11,000 RT • UKM Loop 1 : 3,700 RT o Developer, Contractor & Equity Owner of • MBSA, Shah Alam : 1,300 RT District Cooling System (DCS) + Thermal • IJN, KL : 1,930 RT Energy Storage (TES) Projects • KLIA2 : 18,000 RT

(BOOT/BOO Scheme) EPC Project for DCS (completed) o DCS Plant Operations and Maintenance • UKM L2 : 3,200 RT • UITM Sg. Buloh : 3,200 RT o ISO-certified since 2006 • UITM Seremban : 2,100 RT o Developer & Contractor for Large Scale • MINT : 1,500 RT Solar(LSS), PMU and PPU • BMC Abu Dhabi : 18,000 RT • Al Reef Abu Dhabi : 8,000 RT

o TNEC’s business roles: Facility Management (completed) o Project developer • Menara CIMB - Maintenance of HVAC o EPC contractor • UKM Loop 1 & 2 : Plant Maintenance & HVAC Faculties o Engineering & project management o Equity owner Large Scale Solar (LSS) o Operations & maintenance • 50MW Sepang Completed (2018) • 29MW K.Muda, Completed (2018) • 30MW Bkt Selambau 2020 completion

14 Strictly Private & Confidential TNEC’s Solutions and Offer

DESIGN OPERATION • Concept Design and choice of technology. Analysis • Multi-energy management. of the demand load curve, choice of equipment • O & M, major maintenance and asset replacement CONSTRUCTION/PROCUREMENT • Construction design, supervision and PERFORMANCE GUARANTEE via Energy commissioning. Supply Agreement • Availability of Energy FINANCING • Cost of Operation & Maintenance • Possibilities business models and contracts • Quality of Energy (e.g. supply temperature) • Efficiency of Energy Supply SUPPLY • Asset Management • Optimization and supervision of supply

Types of Contract • Build, Operate & Own (BOO) • Build, Operate & Transfer (BOT) • EPC + Comprehensive O&M • Finance, Rehabilitate, Operate & Maintain

Option – Joint Venture (JV) Concessionaire Company with Developer – Collaboration and Partnership

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