MK Land Holdings Bhd has been granted a four-year extension by the Energy Commission (EC), to its power purchase arrangement for 10.95 MW Large Scale Solar Photovoltaic Plant in Kerian (Perak).
Therefore, the PPA’s tenure will continue for 25 years after the extension.
According to MK Land’s filing to the stock exchange, the EC allowed the LSSPV’s commercial operation date to be delayed one year to December 31, 2023.
MK Land stated that related warranties and agreements will be extended to align with the 25-year effective PPA period.
The group also stated that PPA’s supplementary agreement is expected to positively impact future earnings.
MK Land is one of the Large Scale Solar 4 @ MEnTARI project owners who have been granted a PPA extension. KPower Bhd with its LSS4 Project in Pahang and Ranhill Utilities Bhd with its LSS4 Project in Perak are two other examples.
The extension was granted by EC in light of the fact that prices for solar panels have increased by between 30% and 50% since 2020, according to EC.
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