,In a filing with Bursa Malaysia yesterday, the utilities group said the agreements were related to the LSS bidding cycle four, organised by the Energy Commission in the second half of 2020 to develop, among others, the transmission-connected LSS projects.
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KUALA LUMPUR: Tenaga Nasional Bhd (TNB) has signed large-scale solar (LSS) photovoltaic power purchase agreements (PPAs) with nine special-purpose companies (SPC) that were incorporated by the successful bidders of the LSS phase four project (LSS4).
In a filing with Bursa Malaysia yesterday, the utilities group said the agreements were related to the LSS bidding cycle four, organised by the Energy Commission in the second half of 2020 to develop, among others, the transmission-connected LSS projects.
The nine SPCs are Asiabina Solar Sdn Bhd, Classic Solar Farm Sdn Bhd, GBS Suria Sdn Bhd, JAKS Solar Nibong Tebal Sdn Bhd, PKNP KPower Suria Sdn Bhd, Ragawang Power Sdn Bhd, Ranhill Solar I Sdn Bhd, TNB Bukit Selambau Solar Dua Sdn Bhd and Uzma Kuala Muda Sdn Bhd.
Each of the SPCs will design, construct, own, operate and maintain a solar photovoltaic energy-generating facility with the approved capacity at various locations in Perak, Perlis, Penang, Pahang and Kedah.
The nine agreements have a collective capacity of 450 megawatts of alternating current. The facilities are scheduled for commercial operation in 2023.
“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,” TNB said.
The signing of the PPAs is expected to have a neutral impact on the earnings of TNB over the term of the PPAs since the generation cost is fully passed-through under the Incentive Based Regulation mechanism.