TNB awards three LSS PPAs with total capacity of 290.88 MWAC

KUALA LUMPUR, June 24 — Tenaga Nasional Bhd (TNB) has awarded three Large-Scale Solar (LSS) Photovoltaic Power Purchase Agreements (PPAs) with a total capacity of 290.88 MWAC to three special-purpose companies (SPCs) set up by the successful bidders.

In a filing with Bursa Malaysia, TNB said Cypark Suria Merchang Sdn Bhd, an SPC of Cypark Resources Bhd and Impian Bumiria Sdn Bhd, will develop a 100 MWAC solar project in Marang, Terengganu.

Solarpack Suria Sungai Petani Sdn Bhd, established by KH Renewables Sdn Bhd and Solarpack Asia Sdn Bhd, won the right to develop a 90.88 MWAC solar project in Kuala Muda, Kedah.

Another 100 MWAC solar project, in Pekan, Pahang, will be developed by LSS3 Pekan Sdn Bhd, an SPC of Konsortium Beseri Jaya Sdn Bhd and Hanwha Energy Corporation Singapore Pte Ltd.

Each of the SPCs will design, construct, own, operate and maintain their facility with the approved capacity at its proposed location, TNB said, adding that the projects must be operational by December 31, 2021.

“The PPAs govern 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 as stipulated in the PPAs,” it said.

According to TNB, the signing of the PPAs will not have any effect on the issued and paid-up share capital and the major shareholders’ shareholdings.

It will also have a neutral impact on the earnings over the term of the PPAs since the generation cost is fully passed-through under the Incentive Based Regulation mechanism, TNB said. — Bernama