KUALA LUMPUR (Aug 25): Uzma Bhd has become the latest in a slew of companies which have been granted a four-year extension by the Energy Commission for their power purchase agreements with Tenaga Nasional Bhd that were secured for the development of large-scale solar (LSS) photovoltaic plants under the government's fourth competition bidding programme, known as LSS4 or MEnTARI.
In a bourse filing, Uzma said the four-year extension will lengthen its PPA's tenure to 25 years. Its wholly owned Uzka Kuala Muda Sdn Bhd (UKM) had received the notification letter from the EC dated Aug 8 in connection with the PPA extension for the group's LSS power plant in Kuala Muda, Kedah.
“UKM and TNB will execute a supplementary agreement to the PPA to reflect the extension period,” said Uzma.
The Edge first reported on Aug 2, citing sources, that LSS4 project owners would have their PPAs extended as the viability of some projects had been affected following a 30% to 50% jump in solar panel prices since the submission of bids in 2020.
Besides Uzma, companies that have received the PPA extension include Ranhill Utilities Bhd, KPower Bhd, Tan Chong Motor Holdings Bhd, MK Land Holdings Bhd, Advancecon Holdings Bhd and Gopeng Bhd.
Additionally, the EC agreed to the extension of financial closing date for Uzma's LSS power plant from June 30 to Sept 30, with the scheduled commercial operation date now scheduled for Dec 31, 2023.
Uzma shares closed unchanged at 40 sen, giving the group a market capitalisation of RM140.8 million.