Tenaga Nasional Bhd (TNB), the only electric utility company in Malaysia, has announced it has signed two Power Purchase Agreements (PPAs) for two 50 MW solar projects.
TNB signed the PPAs with two special purpose companies (SPCs), UITM Solar Power Sdn Bhd and TNB Sepang Solar Sdn Bhd.
UITM Solar Power is set up by the consortium of UITM Property Management Sdn Bhd, BJ Power Co Ltd and Perwira Al-Syura Consulting Engineers Sdn Bhd, while TNB Sepang Solar was set up by TNB itself.
TNB and the consortium are among the seven successful bidders of large-scale solar (LSS) competitive bidding exercise organized by the Energy Commission (Suruhanjaya Tenaga) last year to develop the LSS projects.
Under the PPAs, 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.
TNB said the PPAs govern the obligations of the parties to sell and purchase the energy generated for 21 years from the commercial operation date.