Tenaga Nasional signs PPAs for 60 MW in Malaysia

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The Kuala Lumpur-based utility signed the agreements with two special purpose companies (SPCs). The SPCs will develop, own, run and maintain their respective projects, which will be built in Peninsular Malaysia.

Bukit Selambu Solar will develop a 30 MW (AC) solar installation in Kuala Muda, in the northwestern state of Kedah, by the end of December 2020, according to an online statement. The other SPC, Gebeng, has agreed to build 29.92 MW of PV capacity in Kuantan, in the state of Pahang. It will connect the project to the grid by early February 2020.

The two projects were awarded in an auction held by Suruhanjaya Tenaga — the country’s Energy Commission — in the first quarter of last year. Both SPCs have agreed to sell the electricity generated by the PV arrays to Tenaga Nasional for a period of 21 years.

The PPA signings are the latest in a series of projects and supply deals that have been announced in Malaysia in recent months. In January, PA Resources, unit of Malaysian engineering firm PA Group, signed a $154 million, three-year deal to supply materials to thin-film PV module manufacturer First Solar. Also in January, Finnish engineering consultancy Pöyry revealed that it had agreed to work with Leader Solar Energy on the development of a 29 MW solar project in Kedah.

In December, a consortium headed by Cypark Resourceswon the rights to develop a 30 MW PV array in Negeri Sembilan. Also in December, a unit of Vortex Energyrevealed plans to sell a 45% stake in a 365 MW solar portfolio to Kumpulan Wang Persaraan (KWAP), Malaysia’s second-biggest pension fund.

In November, Solar Management (Seremban) secured a $60.4 million Islamic financing facility from Malaysia Building Society Bhd. to support the construction of 50 MW of solar capacity in Negeri Sembilan. And in October, Spanish inverter specialist GPTech signed a deal to supply 197 MW of inverters to Norway’s Scatec Solar for PV projects throughout Malaysia.

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