TNB signs power purchase deals with two solar energy companies

PETALING JAYA: Tenaga Nasional Bhd (TNB) has signed power purchase agreements (PPAs) with two special purpose companies (SPCs), UITM Solar Power Sdn Bhd and TNB Sepang Solar Sdn Bhd.
In a filing with Bursa Malaysia yesterday, TNB said UITM Solar Power was set up by the consortium of UITM Property Management Sdn Bhd, BJ Power Co Ltd and Perwira Al-Syura Consulting Engineers Sdn Bhd, while TNB Sepang Solar was set up by TNB itself.
TNB and the consortium are among the seven successful bidders of large-scale solar (LSS) competitive bidding exercise organised by the Energy Commission last year to develop the LSS projects.
TNB expects to execute PPAs with the remaining bidders soon.
Under the PPAs, each of the SPCs will design, construct, own, operate and maintain a solar photovoltaic energy generating facility with the approved capacity at its proposed location.
TNB said the PPAs govern the obligations of the parties to sell and purchase the energy generated for 21 years from the commercial operation date. It added that the signing of the PPAs will have a neutral impact on its earnings during the course of the agreements.