Scomi unit signs PPA with TNB

PETALING JAYA: Scomi Group Bhd’s unit, Strong Elegance Sdn Bhd (SESB) has signed a power purchase agreement (PPA) with Tenaga Nasional Bhd (TNB).

Scomi said in a statement yesterday that SESB will undertake to develop a 30MWac Large Scale Solar Photovoltaic Power Plant at Bandar Sungai Petani, Kedah on a build-own-operate basis. The PPA has an expected commercial operation date of Dec 31, 2018. It governs the sale and purchase obligations of the energy generated by the project between SESB and TNB for a period of 21 years from the commercial operation date.

The project is expected to contribute positively to the future earnings of Scomi.

SESB is a subsidiary of Synergy Generated Sdn Bhd, Scomi and Lembaga Tabung Angkatan Tentera. Scomi has a 30% equity interest in SESB.