KUALA LUMPUR (June 29): Tenaga Nasional Bhd (TNB) has signed Large Scale Solar (LSS) photovoltaic power purchase agreements (PPAs) with two special purpose companies set up by the successful bidders in the competitive bidding exercise for the LSS Phase 3 project.

In a filing today, TNB said it had signed one agreement with Coara Solar Sdn Bhd and German-based company ib vogt GmbH for a project in Marang, Terengganu.

The second agreement signed was with TTL Energy Sdn Bhd and French-based company ENGIE Energie Services SA for a project in Kerian, Perak.

The two projects have scheduled commercial operation dates of Nov 15 and Dec 31 next year respectively.

The bidding exercise was organised by the Energy Commission in the first quarter of 2019 for the development, among others, of transmission-connected LSS projects.

“Each of the special purpose companies will design, construct, own, operate and maintain a solar photovoltaic energy generating facility with the approved capacity (facility) at its proposed location,” said TNB.

“The PPAs govern the obligations of the parties to sell and purchase the energy generated by the facility for a period of 21 years from the commercial operation date in accordance with the agreed terms and conditions as stipulated in the PPAs,” it added.

TNB said the signing of the PPAs will not have any effect on the group’s issued and paid-up share capital and major shareholders’ shareholdings.

It will have a neutral impact on earnings of TNB over the term of the PPAs since the generation cost is fully passed through under the Incentive Based Regulation mechanism, the group added.

Shares in TNB closed eight sen or 0.7% higher at RM11.56 today, with a market capitalisation of RM65.95 billion.