PETALING JAYA: Tenaga Nasional Bhd (TNB) today signed a power purchase agreement (PPA) with Pulau Indah Power Plant Sdn Bhd (PIPP) for electricity generated from the combined cycle gas power plant in Pulau Indah, Selangor.
PIPP is a special purpose company owned by Tadmax Resources Bhd (40%), Worldwide Holdings Bhd (35%) and Korea Electric Power Corp (25%).
Tadmax was awarded the right to develop the power plant in 2016.
The PPA will be for a period of 21 years from the commercial operation date of the first generating block, which is expected on Jan 1, 2024.
PIPP will construct, own, operate and maintain a gas-fired combined cycle electricity generating facility with a total nominal capacity of 1,200 megawatts (MW) proposed to be located at Pulau Indah, Selangor.
“The signing of the PPA will have a neutral impact on the earnings of TNB over the term of the PPA since the generation cost is fully passed-through under the Incentive Based Regulation mechanism,” TNB said in a stock exchange filing.
