TNB signs solar power purchase deal with Mudajaya unit

PETALING JAYA: Tenaga Nasional Bhd (TNB) has signed a Large-Scale Solar Power Purchase Agreement (LSS PPA) with Sinar Kamiri Sdn Bhd, a unit of Mudajaya Group Bhd.

In a filing with Bursa Malaysia yesterday, TNB said Sinar Kamiri will design, construct, own, operate and maintain a solar photovoltaic energy generating facility of 49 megawatts to be located in Sungai Siput, Perak.

“The PPA, which has an expected commercial operation date of Aug 31, 2018, governs the obligations of the parties to sell and purchase the energy generated by the facility for a period of 21 years from the commercial operation date in accordance with the agreed terms and conditions,” it said.

TNB said the signing of the PPA will not have any effect on its issued share capital and substantial shareholders’ shareholdings, and will have a neutral impact on its earnings during the duration of the agreement.

Sinar Kamiri is a wholly owned subsidiary of Mudajaya RE Sdn Bhd, which in turn is an indirect wholly owned subsidiary of Mudajaya Group through its wholly owned subsidiary, Mudajaya Energy Sdn Bhd.

Last year, the Energy Commission held a competitive bidding exercise to develop, among others, the transmission-connected large-scale solar projects. The commission awarded the said projects to seven successful bidders.