KUALA LUMPUR (Aug 15): Tenaga Nasional Bhd (TNB) has secured RM339 million financing for its first Large Scale Solar (LSS) project in Malaysia.

In a statement today, the national utility corporation said its unit TNB Sepang Solar Sdn Bhd (TSS) had secured the amount through Affin Islamic Bank Bhd, who will be providing funding and working capital requirements for the said project.

TSS was set up as a special purpose vehicle to undertake the project, which was awarded by the Energy Commission through a competitive bidding exercise, TNB said.

A Solar Power Purchase Agreement (SPPA) for the project was also inked in early March 2017 between TNB and TSS. 

Under this 21 year agreement, TSS would supply electricity to TNB, through the national grid, from the 50MW (megawatt) LSS. It will begin its commercial operations in November 2018. Once completed, the LSS will also be Malaysia’s largest solar farm.

TNB Vice President (Energy Ventures), Datuk Nor Azman Mufti described the project as a booster to TNB’s aspiration in championing renewable energy (RE) in Malaysia.

“As many utility companies around the world are shifting towards RE, TNB also aspires to be the ASEAN leader in renewable energy by 2025,” Azman Mufti added.