Tenaga Secures Financing For Large Scale Solar Project In Kedah
Tenaga Nasional Berhad (TNB), Malaysia’s leading electricity utility with a presence throughout Peninsular Malaysia, Sabah and Labuan, has secured USD 35 million financing for its second Large Scale Solar (LSS) project in Malaysia in Bukit Selambau, Kuala Muda, Kedah. TNB’s wholly-owned subsidiary, TNB Bukit Selambau Solar Sdn. Bhd. (TBSS), worked together with MUFG Bank (Malaysia) Berhad (formerly known as Bank of Tokyo-Mitsubishi UFJ (Malaysia) Berhad) to secure financing for the project. The bank will provide funding and working capital requirements for the LSS project up to MYR 144 million (USD 35 million).
TBSS, which was set up as a Special Purpose Vehicle to undertake the LSS in Kuala Muda, Kedah, was awarded the project by the Energy Commission through a competitive bidding exercise. TNB and TBSS inked a 21 -year Power Purchase Agreement (PPA) for the project in early March 2018. The project is scheduled to be completed in the fourth quarter of 2020. The LSS will have a generation capacity of 30 megawatt (MW) with DC install capacity of 45MWp.
The national utility corporation’s first LSS in Kuala Langat, Selangor -currently in operation- has a generation capacity of 50MW with DC install capacity of 78 MWp. The two LSS projects reinforce TNB’s aspiration and commitment towards the growth of renewable energy (RE) in the country. The Ministry of Energy, Science, Technology, Environment and Climate Change (MESTECC) has set a target of 20 percent of the country's electricity to be generated from renewable sources by 2030, an increase from the current 2 percent.
(Source: TNB Press Release; The Edge Markets)