Temasek Holdings Sell Power Plant for $3.8 billion

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A power plant similar to the one that was purchased.

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Malaysia's YTL Power International has finally managed to secure its first power generating asset in Singapore, just a few miles south from where it owns an efficient gas-fired power plant in the Malaysian state of Johor.

The news of the asset sale was announced by Temasek Holdings, which is owned by the Singapore government. With this sale, it is hoped that the electricity market in this island state will be genuinely competitive as Temasek Holdings will now no longer hold direct stakes in power companies.

Besides the challenge of competition, something that YTL in its acquisition trail outside Malaysia has steered away from in the past, opting instead for regulated assets, the new owners will have to deal with the question of what to do with its ageing and inefficient oil-fired plants.

Still, this may pale in significance compared with the potential gains from operating efficient gas turbine plants that make up the 3,100 MW capacity.