KUALA LUMPUR (March 28): Tenaga Nasional Bhd (TNB) today signed a large-scale solar (LSS) photovoltaic power purchase agreement (PPA) with special purpose company, KBJ Hecmy Sdn Bhd in conjunction with a competitive bidding exercise by the Energy Commission to develop transmission-connected LSS projects.

KBJ Hecmy will design, construct, own, operate and maintain a solar photovoltaic energy generating facility of 30 megawatt alternating current (MWac) to be located in Mukim Chuping, Bukit Keteri, Perlis, TNB said in a stock exchange filing.

“The PPA, which has an expected commercial operation date of Dec 1, 2020, governs the obligations of the parties to sell and purchase the energy generated by the facility for a period of 21 years,” TNB said.

The agreement comes on the heels of six earlier PPAs that TNB had signed on Tuesday with special purpose companies set up by winners of a competitive bidding organised by the Energy Commission in the first quarter of 2017.

The signing of the agreement with KBJ Hecmy is expected to have a neutral impact on TNB over the term of the PPA, and is not expected to have any effect on the group’s issued share capital and its substantial shareholders’ holdings of TNB.

TNB gained 8 sen or 0.51% to close at RM15.80 today, giving the group a market capitalisation of RM89.52 billion.