March 20 (Renewables Now) - Malaysian utility Tenaga Nasional Bhd (KLSE:TENAGA), or TNB, announced on Tuesday it has sealed long-term power purchase agreements (PPAs) for 59.9 MW of solar projects to be built in western Malaysia.
The 21-year contracts were signed with special purpose companies TNB Bukit Selambau Solar Sdn Bhd, which is owned by the utility itself, and RE Gebeng Sdn Bhd. The two companies were among the winning bidders in a solar tender held by Suruhanjaya Tenaga, Malaysia’s Energy Commission, in the first quarter of last year.
TNB Bukit Selambau and RE Gebeng will design, build, own, operate and maintain two grid-connected solar projects, the output of which will be bought by TNB under the two off-take deals.
More specifically, TNB Bukit Selambau will build a 30-MW photovoltaic (PV) farm in Kuala Muda, Kedah state, while RE Gebeng will install a 29.9-MW plant in Kuantan, in the state of Pahang. The plants are expected to kick off commercial operations by December 30, 2020 and February 3, 2020, respectively.
TNB announced a range of similar contracts last year.