Malaysian utility agrees to buy power from 500 MW of solar plants


Malaysian state-owned electric company Tenaga Nasional Bhd (TNB) has signed 21-year power purchase agreements (PPAs) with 10 solar power plants to be commissioned across four states.

The solar projects, each with a generation capacity of 50 MWac, were awarded under the fourth-round tender of the national Large Scale Solar procurement program held by regulator Surchanjaya Tenaga in the second half of last year, according to an article in Malaysian newspaper The Star, which reported the signing of the first nine PPAs after an announcement by TNB to the Bursa Malaysia.

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With all the the project capacity due to start generating in 2023, the states of Pahang and Perak will each host three solar farms, Kedah will feature two and there will be one in each of Penang and Selangor.

The first solar plant due to be commissioned, on March 30, 2023, will be constructed by Selangor-based energy company subsidiary JAKS Solar Power, at southern Seberang Perai in Pulau Pinang, Penang.

September 29 will be the start date for a project planned by energy company Uzma Environergy at Sungai Petani, Kedah state. A plant being jointly developed by state-owned economic development body Perbadanan Kemjuan Negeri Pahang and Kuala Lumpur-based renewables company KPower Bhd, at Pekan, in Pahang state, is due to come online a day later.

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Selangor construction business Ragawang Corp has agreed a start date of November 30, 2023, for its solar plant at Pekan, and developer Classic Solar Farm will commission its site, also at Pekan, on December 20 that year. Construction firm Asiabina Properties will commission its site, at Kevian, in Perak state, on December 30, 2023, and the final day of that year will mark the start of operations at another four facilities.

Real estate and palm oil company Gopeng Bhd will construct a site in Gopeng, Perak state; water and power company Ranhill Utilities will install a plant at Batang Padang, in Perak; TNB subsidiary TNB Renewables will complete a site at Kuala Muda, Kedah state; and Sharp Ventures Solar is due to commission a project at Klang, in Selangor Darul Ehsan, with the signing of the latter PPA announced separately by TNB on Monday.

The electric company did not reveal how much it would pay for the solar electricity to be generated at the sites but pv magazine reported in March the bids lodged by shortlisted developers in the appropriate section of the tender had ranged from MYR0.1768-0.1970/kWh (US$0.0419-0.0466).

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