KPower Bhd has extended its power purchase agreement, with Tenaga Nasional Bhd, for a further four years. This extension relates to the development and operation of a 50-megawatt solar photovoltaic plant in Pekan.
KPower stated that the Energy Commission informed the renewable energy group’s 95%-owned subsidiary, PKNP KPower Sdn Bhd about the extension of the PPA’s term to 25 years from 21 years.
The EC also extended the closing date for the project, which was developed under the LSS4@MEnTARI programme, from June 30, 2022, until Sept 30, 2022, and the scheduled commercial date between Sept 30, 2023, and Dec 31, 2023.
KPower stated that PKSSB would execute a supplemental agreement to TNB in order to implement the aforesaid terms. The company stated that KPower’s future earnings will be impacted by the extension of time.
Ranhill Utilities Bhd, another LSS4 winner, received a four-year extension to its PPA with TNB. This will allow Ranhill Utilities Bhd to build a 50MW plant in Perak under LSS4.
Ranhill was also granted a similar extension to the project’s financial close date and the scheduled date for commercial operation.
According to sources, the EC appears to have granted LSS4 winners an extension to reflect the impact on the viability of some projects, after a jump of 30% to 50% in solar panel prices since they submitted their bids for 2020.
