Fadillah, who witnessed the signing of a memorandum of understanding between the Penang Development Corporation  and TNB Power Generation Sdn Bhd (TNB Genco) to undertake a feasibility study on a proposal to install the system at the power station, said the potential for green energy supply in the region is “very promising”.

“I am pleased to see this collaboration between the state and TNB. I hope it will drive and ensure a secure and stable energy supply, especially for Penang,” said Fadillah, who is also the energy transition and water transformation minister.

“I am certain that this initiative will not only create job opportunities but also increase the state’s income.”

The Gelugor power station has been operating for over 20 years and can generate 330MW of electricity, which meets about 40% of the demand in Penang.

TNB Genco managing director Nazri Pazil said that subject to the feasibility study’s results, the project is expected to be completed in two phases: the first being the aeroderivative units with a capacity of 300MW and BESS with a capacity of 200MWh on nine acres of land.

The second phase would accommodate 900MW BESS on the existing site.

“If all goes well and the AGT and BESS project award letter is obtained in early 2026, the BESS project is expected to reach commercial operation in 2027 with a 12-month lead time for procurement and site implementation,” he said.

“Subsequently, by the end of 2028, the AGT project is anticipated to begin operations after a 30-month lead time for procurement and site implementation.

“The redevelopment of the Gelugor power station will undoubtedly result in continuous economic spillover effects in Penang, benefiting the local economy and the supply chain industry.”