TNB signs solar power purchase deals
KUALA LUMPUR: Tenaga Nasional Bhd (TNB) yesterday signed large-scale solar (LSS) photovoltaic power purchase agreements (PPAs) with two specialpurpose companies (SPCs).
The two SPCs are UITM Solar Power Sdn Bhd and its own unit TNB Sepang Solar Sdn Bhd.
Both firms were respectively set up by companies that won in the Energy Commission’s competitive bidding exercise last year to develop transmission connected LSS projects.
The companies are Consortium UITM Property Management Sdn Bhd, BJ Power Co Ltd and Perwira Al-Syura Consulting Engineers Sdn Bhd.
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 Sepang Solar will build its plant in Sepang while UITM Solar Power will build its facility in Gambang, Pahang, with both facilities are scheduled to start commercial operations on November 1 next year.
The PPAs govern the obligations of the parties to sell and purchase the energy generated by the facilities for a period of 21 years from the commercial operation date in accordance with the agreed terms and conditions.
The signing of the PPAs will not have any effect on the issued and paid-up share capital and the substantial shareholders’ shareholdings of TNB and will have a neutral impact on the earnings of TNB over the term of the contracts.