TNB signs two PPAs for solar projects

PETALING JAYA: Tenaga Nasional Bhd (TNB) has signed two large-scale solar (LSS) photovoltaic power purchase agreements (PPAs) to set up two facilities with a total capacity of about 60Mwac.
In a filing with Bursa Malaysia today, TNB said the PPAs were signed following a competitive bidding exercise organised by the Energy Commission in the first quarter of 2017 to develop, among others, the transmission-connected LSS projects.
The two PPAs were signed with special purpose companies TNB Bukit Selambau Solar Sdn Bhd and RE Gebeng Sdn Bhd, which were set up by the successful bidders namely TNB and RE Gebeng.
The PPA with TNB Bukit Selambau is for 30Mwac and the proposed location of the facility is Kuala Muda, Kedah with commercial operation date scheduled for Dec 31, 2020 while the PPA with RE Gebeng is for 29.916Mwac and the proposed location is Kuantan, Pahang with commercial operation date scheduled for Feb 3, 2020.
The special purpose companies will design, construct, own, operate and maintain the solar photovoltaic energy generating facilities.
Under the PPAs, the parties will sell and purchase the energy generated by the facilities for 21 years from the commercial operation dates according to the agreed terms and conditions.
TNB’s share price rose 0.13% or 2 sen to close at RM15.70 today with a total of 5.65 million shares traded.