TNB to buy solar-generated power from 2 Perak-based facilities

By BERNAMA / Pic By HUSSEIN SHAHARUDDIN

Tenaga Nasional Bhd (TNB) has signed large-scale solar (LSS) photovoltaic power purchase agreements (PPAs) with Redsol Sdn Bhd and Coral Power Sdn Bhd.

Redsol is a special-purpose company of Fumase (M) Sdn Bhd and Scatec Solar Malaysia BV, two of the winners of a LSS competitive bidding exercise organised by the Energy Commission in the first quarter of last year, to develop, among others, transmission connected LSS projects.

Meanwhile, Coral Power is 70%-owned by Minetech Resources Bhd and 30% by two individuals.

In a filing to Bursa Malaysia last Friday, TNB said Redsol would build, own and operate a 30MW solar facility in Kerian, Perak.

The utility giant added that the agreement inked with Redsol last Friday had an expected commercial operation date of Dec 31, 2019, and governed 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.

Minetech, meanwhile, issued a separate filing to announce that Coral Power inked a PPA with TNB last Monday to generate and sell solar photovoltaic energy to TNB’s grid system at the Pantai Remis main distribution substation from its 9.99MW solar facility in Manjung, Perak.

The 21-year PPA would take effect when all conditions precedent were satisfied, it said, adding that the project was expected to contribute positively to the group’s earnings and net assets in 2020.

“On completion, this project will be one of the first systems utilising flotation devices on a pond in Malaysia,” the company said.

According to Minetech, Coral Power budgeted about RM62 million to undertake the project.

Earlier last week, TNB had inked photovoltaic PPAs with seven other special-purpose companies.