KUALA LUMPUR (Aug 19): Utility giant Tenaga Nasional Bhd (TNB) has inked Large Scale Solar (LSS) photovoltaic power purchase agreements (PPAs) with nine special purpose companies (SPCs) incorporated by the successful bidders in the competitive bidding exercise for the LSS Phase 4 project (LSS4).
The agreements are in relation to the LSS bidding cycle four organised by Suruhanjaya Tenaga in the second half of 2020 to develop, among others, the transmission-connected LSS projects which have a total capacity of 450 megawatts of alternating current (MWAC).
The SPCs are Asiabina Solar Sdn Bhd, Classic Solar Farm Sdn Bhd, GBS Suria Sdn Bhd, JAKS Solar Nibong Tebal Sdn Bhd, PKNP KPower Suria Sdn Bhd, Ragawang Power Sdn Bhd, Ranhill Solar I Sdn Bhd, TNB Bukit Selambau Solar Dua Sdn Bhd, and Uzma Kuala Muda Sdn Bhd.
“Each of the SPCs will design, construct, own, operate and maintain a solar photovoltaic energy generating facility with the approved capacity (Facility) at its proposed location.
“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,” said TNB in a bourse filing.
TNB said the signing of the PPAs will not have any effect on the group’s issued and paid-up share capital and major shareholders’ shareholdings.
It will have a neutral impact on earnings of TNB over the term of the PPAs since the generation cost is fully passed through under the Incentive Based Regulation mechanism, the group added.
Shares of TNB closed up one sen or 0.1% to RM9.90 with some 900,500 shares done. This gave the group a market capitalisation of RM56.69 billion.
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