TNB signs so­lar power pur­chase deals

New Straits Times - - Business -

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.

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