Malaysian Utility Signs PPAs for 60 MW of Grid-Connected Solar PV Projects

Two bidders won the rights to develop 30 MWs each under 21-year PPAs


In an effort to expand the reach of solar power in Malaysia, the country’s leading utility company Tenaga Nasional Berhad (TNB) has entered into power purchase agreements (PPAs) for 60 MW of grid-connected solar PV projects.

TNB entered into one of the PPAs with Redsol Sdn Bhd, a special purpose company formed by Fumase (Malaysia) Sdn Bhd and Scatec Solar Malaysia B.V., for a 30 MW grid-connected solar PV project in Mukim Beriah, Daerah Kerian, Perak.

The PPA will be valid for 21 years and the project is expected to begin operations on December 31, 2019.

TNB also entered into a second PPA with another special purpose company, KBJ Hecmy Sdn Bhd, for a 30 MW grid-connected solar PV project planned for Mukim Chuping, Bukit Keteri, Perlis. That PPA will also be valid for 21 years and the project is expected to commence operations on December 1, 2020.

In March 2018, Mercom reported that TNB had entered into PPAs with six separate project developers to establish a combined 180 MW of grid-connected solar PV projects across the states of Kedah, Kelantan, and Negeri Sembilan in Malaysia. Here too, the successful bidders had to form special purpose companies (SPCs) to enter into the PPAs with TNB.

The signing of the PPAs adds more momentum to TNB’s push to grow the country’s renewable energy capacity. It comes roughly seven months after TNB secured ₹339 million (~$79 million) in financing from Affin Islamic Bank Bhd for a 50 MW large-scale solar project in Selangor, Malaysia. Mercom reported on that deal in August 2017.

In December 2017, Suruhanjaya Tenaga, Malaysia’s Energy Commission, awarded 563 MW of solar projects in its second large-scale solar tender, against an original planned capacity of 460 MW. Those projects are expected to be commissioned by 2020.