Tenaga Nasional Bhd (TNB), Malaysian multinational electricity company today signed two large-scale solar (LSS) photovoltaic power purchase agreements (PPAs) with special purpose companies (SPCs) set up by the successful bidders.
The successful bidders are Coara Solar Sdn Bhd and ib vogt GmbH with their SPC Coara Marang Sdn Bhd (100 MWAC) in Marang, Terengganu as well as TTL Energy Sdn Bhd and ENGIE Energie Services SA their SPC Kerian Solar Sdn Bhd (100 MWAC) in Kerian, Perak.
Each of the SPCs will design, construct, own, operate and maintain a solar photovoltaic energy generating facility with the approved capacity at its proposed location.
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.
The signing of the PPAs will 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.
Scheduled Commercial Operation Date (SCOD) of both the projects are 15 November 2021 and 31 December 2021.