Ranhill Utilities Berhad receives a notification letter from the Energy Commission notifying its wholly owned subsidiary Ranhill Solar I Sdn Bhd (RSI) of the extension of the Financial Closing Date, Scheduled Commercial Operation Date and effective period of the Power Purchase Agreement (PPA) for the 50MWac Large Scale Solar Photovoltaic Plant at Batang Padang, Perak under the LSS4@MEnTARI.
The EC through its letter notified RSI of the following:
i. Extension of the FCD from 30 June 2022 to 30 September 2022;
ii. Extension of SCOD from the actual date of SCOD to 31 December 2023;
iii. Extension of the effective period of PPA with 4 years extension with a total period of 25 years; and
iv. Related agreements and warranties to be extended and aligned with the latest effective PPA period of 25 years.
The revised terms for the PPA will govern the obligations of RSI and Tenaga Nasional Berhad (TNB) to sell and purchase the energy generated by the Facility to TNB for a period of 25 years from the commercial operation date. With the new effective period announced, the Facility will be operated and maintained up until 2048.
The new effective period of the PPA will be stipulated under the Supplementary Agreement of PPA which will be signed between RSI and TNB.
The signing of the Supplementary Agreement of PPA is not expected to have any material impact on the earnings and net assets of Ranhill’s Group for the financial year ending 31 December 2022. However, the Supplementary Agreement of PPA is expected to contribute positively to the future earnings of Ranhill Group.