KUALA LUMPUR (Aug 23): Tenaga Nasional Bhd (TNB) said the government-controlled utility had today signed a large-scale solar photovoltaic power purchase agreement (PPA) with Sharp Ventures Sdn Bhd’s special purpose company Sharp Ventures Solar Sdn Bhd to govern TNB’s planned purchase of electricity from Sharp Ventures Solar under a 21-year deal.

In a statement to Bursa Malaysia today, TNB said Sharp Ventures Solar will design, construct, own, operate and maintain a solar photovoltaic energy generating facility with an approved capacity of 50 megawatts alternating current (MWac) at Klang, Selangor.

"The PPA governs 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 which is expected on Dec 31, 2023, in accordance with the agreed terms and conditions as stipulated in the PPA.

"The signing of the PPA will not have any effect on the issued and paid-up share capital and the major shareholders’ shareholdings of TNB and will have a neutral impact on the earnings of TNB over the term of the PPA since the generation cost is fully passed-through under the incentive based regulation mechanism.

"None of the directors or major shareholders of TNB and/or persons connected with them has any interest, direct or indirect, in relation to the above mentioned PPA,” TNB said.

At Bursa’s 12:30pm break today, TNB’s share price settled up two sen or 0.2% at RM9.87 for a market value of about RM56.56 billion.

TNB has 5.73 billion issued shares.