TNB Signs PPAs to Develop 180 MW of Grid-Connected Solar Projects in Malaysia

Malaysian utility company Tenaga Nasional Berhad (TNB) has taken another step toward its goal of promoting renewable energy in Malaysia with the recent signing of six power purchase agreements (PPAs). The agreements were signed with six separate project developers and call for establishing a combined 180 MW of grid-connected solar photovoltaic (PV) projects across the states of Kedah, Kelantan, and Negeri Sembilan.

According to a Bursa Malaysia filing by TNB, the entire 180 MW of capacity is set to be on the grid by December 2020 and the PPAs will be valid for 21 years.

The successful bidders had to form special purpose companies (SPCs) to enter into the PPAs with TNB.

Here are the details of the respective PPAs signed between TNB and the project developers:

TNB entered into a PPA for a 30 MW grid-connected solar PV project in Dungun with Kenyir Gunkul Solar Sdn Bhd. The project is expected to be complete by December 31, 2019.

TNB also entered into two PPAs that each called for 30 MW of grid-connected solar PV capacity. One of the agreements was signed with Idiwan Solar Sdn Bhd and the other was inked with BGMC BRAS Power Sdn Bhd. One of the projects will be in the Machang District in the state of Kelantan, while the other will be in the Kuala Muda District in the state of Kedah. Both of the projects are expected to be complete by September 30, 2020.

TNB also entered into three PPAs that each called for 30 MW of grid-connected solar PV. The separate agreements were signed with Viva Solar Sdn Bhd, Cypark Estuary Solar Sdn Bhd, and Cove Suria Sdn Bhd. The projects will be located in the Sik District in the state of Kedah and in Empangan Terip and Empangan Kelinchi in the state of Negeri Sembilan. All three of the projects are expected to be complete by December 31, 2020.

The signing of the PPAs adds momentum to TNB’s push to grow renewable energy capacity in the country.  It comes roughly seven months after TNB secured RM 339 million (~$79 million) in financing from Affin Islamic Bank Bhd for a 50 MW large-scale solar project in Selangor, Malaysia. Mercom reported on that deal in August 2017.

Image credit: Flickr

Saumy Prateek Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.