TNB signs power purchase deals

KUALA LUMPUR: Tenaga Nasional Bhd (TNB) has signed large-scale solar (LSS) photovoltaic power purchase agreements (PPAs) with Redsol Sdn Bhd and Coral Power Sdn Bhd.

Redsol is a special-purpose company of Fumase (M) Sdn Bhd and Scatec Solar Malaysia BV while Coral Power is 70%-owned by Minetech Resources Bhd and 30% by two individuals.

In a filing with Bursa Malaysia yesterday, TNB said that Redsol would build, own and operate a 30 MW solar facility in Kerian, Perak.

It said the agreement inked with Redsol yesterday had an expected commercial operation date of Dec 31, 2019, and governed the obligations of the parties to sell and purchase the energy generated by the facility for 21 years from the commercial operation date.

Minetech, meanwhile, issued a separate filing to announce that Coral Power inked a PPA with TNB on Monday to generate and sell solar photovoltaic energy to TNB’s grid system at the Pantai Remis main distribution sub-station from its 9.99-MW solar facility in Manjung, Perak.

The 21-year PPA would take effect when all conditions precedent were satisfied, it said, adding that the project was expected to contribute positively to the group’s earnings and net assets in 2020.

“On completion, this project will be one of the first systems utilising flotation devices on a pond in Malaysia,” the company said.

According to Minetech, Coral Power budgeted about RM62mil to undertake the project.