PETALING JAYA: Tenaga Nasional Bhd (TNB) has signed large-scale solar photovoltaic power purchase agreements (PPAs) with three special purpose companies in relation to the large-scale solar phase 3 (LSS3) competitive bidding exercise by the Energy Commission initiated in the first quarter of 2019.
According to the group’s Bursa Malaysia filing, the successful bidders are Cypark Suria Merchang Sdn Bhd with a capacity of 100MWAC in Marang, Terengganu; Solarpack Suria Sungai Petani Sdn Bhd with a capacity of 90.88MWAC in Kuala Muda, Kedah; and LSS3 Pekan Sdn Bhd with a capacity of 100MWAC in Pekan, Pahang.
Each of the companies will design, construct, own, operate and maintain a solar photovoltaic energy generating facility with the approved capacity, with commercial operations scheduled for Dec 31, 2021.
TNB said the competitive bidding is in line with its objective to develop transmission-connected LSS projecs.
“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 added.
The PPAs will have a neutral impact on TNB’s earnings over the term of the PPAs since the generation cost is fully passed-through under the Incentive Based Regulation mechanism.
