NST Business
KUALA LUMPUR: Tenaga Nasional Bhd (TNB) has inked two large-scale solar power purchase agreements (PPAs) with special purpose companies namely TNB Bukit Selambau Solar Sdn Bhd and Gebeng Sdn Bhd.
The PPAs was inked with TNB Bukit Selambau for a facility in Kuala Muda, Kedah and with Gebeng for a facility in Kuantan, Pahang, the national utility company in a filing with Bursa Malaysia.
The two special purpose companies will each design, construct, own, operate and maintain a solar photovoltaic energy generating facility.
TNB Bukit Selambar's plant will have a capacity of 30MWac while Gebeng's is 29.92MWac.
Their scheduled commercial operation date is December 31, 2020 and February 3, 2020, respectively.
"The signing of the PPAs will not have any effect on the issued 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 PPAs," said TNB.
The PPAs follow the award of transmission-connected large-scale solar projects to successful bidders by the Energy Commission after its competitive bidding exercise in the first quarter of 2017.
"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," TNB said.
In a separate filing, TNB announced a final dividend of 21.41 sen per share for the financial year ended December 31, 2017, payable on April 19.