ELECTRICITY DEMAND TO FIRM UP IN SECOND HALF OF THIS YEAR

KUALA LUMPUR, April 22 (Bernama) -- Electricity demand is expected to firm up in the second half of this year, benefiting from the rollout of projects under the 10th Malaysia Plan and the Economic Transformation Programme (ETP), said MIDF Research.

The research firm said power demand growth is forecasted at 4.8 per cent for this year.

In the first half of this year, MIDF said , Tenaga Nasional Bhd's
electricity demand grew 3.5 per cent year-on-year in Peninsular Malaysia driven by the commercial dan domestic sectors.

However, electricity demand in the second quarter was slower due to the festive season holidays such as Christmas and Chinese New Year, it said in a statement.

HwangDBS Vickers Research is retaining its five per cent demand growth forecast for this year which is in line with the gross domestic product (GDP) growth and management guidance.

"We expect stronger second half demand growth following the implementation of major construction and oil and gas projects," it said.

Meanwhile, AmResearch Sdn Bhd had reduced Tenaga's financial year 2011 forecast by 12 per cent to RM2.1 billion (US$698.254 million) due to a 10 per cent increase in coal usage assumption to 20 million tonnes.

It however maintained the financial year 2012 and 2013 forecasts assumptions as the natural gas shortage currently afflicting Tenaga is expected to be alleviated.