TNB said its earnings over the term of the PPAs would be unaffected since the generation cost is fully passed-through under the Incentive Based Regulation mechanism.
KUALA LUMPUR: Tenaga Nasional Bhd
(TNB) has signed power purchase agreements (PPAs) with Malakoff Corp Bhd’s subsidiary, Prai Power Sdn Bhd, and Panglima Power Sdn Bhd.
In a filing with Bursa Malaysia, TNB said Prai Power will continue to operate and maintain a 350 megawatt (MW) combined cycle gas turbine (CCGT) facility at Seberang Prai Tengah, Penang, within the vicinity of the Prai Power Station while Panglima Power will continue to operate and maintain a 710MW CCGT facility at Teluk Gong, Alor Gajah, Melaka.
The filing said the PPAs govern the obligations of the parties to sell and purchase energy generated by the facilities for a year with an option to extend for an additional one year (subject to system requirements) from the commercial operation date, which is expected to be Sept 1 for Prai Power, and Sept 15 for Panglima Power, under the agreed terms and conditions as stipulated in the respective PPAs.
TNB added that the PPAs will not affect the issued and paid-up share capital and major shareholders’ shareholdings of TNB.
It will also not affect TNB’s earnings over the term of the PPAs since the generation cost is fully passed-through under the Incentive Based Regulation mechanism.
Meanwhile, in a separate statement, Malakoff Corp said the operation date commencing on Sept 1 will ensure a stable and reliable energy supply to meet the current rising demand while simultaneously enhancing energy security with a safe and sufficient reserve margin.
Malakoff managing director and group chief executive officer Anwar Syahrin Abdul Ajib said the execution of the new PPA for Prai Power Plant is the most economically viable and quickest solution to support the national grid while enabling the plant to continue its operations within its remaining service life. — Bernama
