KUALA LUMPUR: Tenaga Nasional Bhd (TNB) has entered into large-scale solar (LSS) photovoltaic power purchase agreements (PPAs) with two special-purpose companies (SPCs).
The two SPCs are UITM Solar Power Sdn Bhd and TNB Sepang Solar Sdn Bhd.
The SPCs were set up by several companies, which won the Energy Commission’s competitive bidding exercise last year, to develop transmission-connected LSS projects.
UITM Solar Power Sdn Bhd SPC comprises Consortium UITM Property Management Sdn Bhd, BJ Power Co Ltd and Perwira Al-Syura Consulting Engineers Sdn Bhd.
TNB Sepang Solar will build its 50Mwac plant in Sepang, while UITM Solar Power will build its 50Mwac facility in Gambang, Pahang.
Both facilities are scheduled to start commercial operations on Nov 1, 2018.
The PPAs govern the obligations of the parties to sell and purchase the energy generated by the facilities for a period of 21 years from the commercial operation date.
In a statement to Bursa Malaysia, TNB said it expects to execute the PPAs with the remaining bidders soon.
The signing of the PPAs will not have any effect on the issued and paid-up share capital and the substantial shareholders’ shareholdings of TNB. It will have a neutral impact on the earnings of TNB over the term of the contracts.