In a statement Tenaga said, “[We] will buy power from Sunquest Sdn Bhd and Recycle Energy Sdn Bhd for 21 years, at a contract value cost of US$3.6 million per year.”
The power being supplied by the two firms comes from plants developed under Malaysia’s Small Renewable Energy Program launched in 2001, which encourages the use of renewable energy in power generation.
Recycle Energy’s Kajang power plant uses municipal solid waste as fuel and can generate 5MW of power. Sunquest’s Negeri Sembilan plant makes use of palm oil waste as its biomass fuel to generate another 5MW of power.