Only half of power purchase agreements will be extended: TNB chief
PUTRAJAYA: Only 50 per cent of the existing power purchase agreements (PPAs) with independent power producers (IPPs) will be extended after expiration in 2015/2016 to enhance the competitive rate for the power industry.
Tenaga Nasional Bhd (TNB) chief executive officer Datuk Seri Che Khalib Mohamad Noh said under the track two of the bidding by the Energy Commission, only the existing IPPs can participate in the bidding but not all would be renewed.
"The most important thing for the industry is to secure the most competitive pricing for power generation," he told reporters after signing a long-term service agreement in engineering services and capacity building with Kumpulan Ikram Sdn Bhd.
Currently, TNB supplies 50 per cent of the country's power requirements while the rest are by the IPPs.
The IPPs that are involved in the bidding included Genting Sanyen, Powertek, Segari and YTL Power. -- BERNAMA