Malaysia: TNB inks two solar power agreements

Malaysia: TNB inks two solar power agreements

Tenaga Nasional Bhd (TNB) inked on Thursday large-scale solar (LSS)
photovoltaic power purchase agreements (PPAs) with two special-purpose
companies (SPCs).

In a filing with Bursa Malaysia, the utility company said the SPCs - UITM
Solar Power Sdn Bhd and its own unit TNB Sepang Solar Sdn Bhd - were set up
by companies that won in the Energy Commission's competitive bidding
exercise last year to develop transmission-connected LSS projects.

UITM Solar Power is set up by Consortium UITM Property Management Sdn Bhd,
BJ Power Co Ltd and Perwira Al-Syura Consulting Engineers Sdn Bhd.

Each of the SPCs will design, construct, own, operate and maintain a solar
photovoltaic energy generating facility with the approved capacity (50 Mwac)
at its proposed location.

UITM Solar Power will build its facility in Gambang, Pahang, while TNB
Sepang Solar will build its plant in Sepang. 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 accordance with the agreed terms and
conditions.

No contract value was disclosed.

TNB said it expected to execute 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 and
will have a neutral impact on the earnings of TNB over the term of the
contracts.

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Link to Original Article:
http://www.thestar.com.my/business/business-news/2017/03/02/tnb-inks-two-sol
ar-power-agreements/

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com