YTL Power gets two-year extension to supply power from Paka plant
08 Oct 2015, 07:21 pm
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KUALA LUMPUR (Oct 8): Independent power producer YTL Power International Bhd said its wholly-owned subsidiary YTL Power Generation Sdn Bhd has won the bid to supply power from its existing 808-megawatt (MW) power plant in Paka, Terengganu, to the main grid for two years and 10 months commencing March 1, 2016.

In a filing with Bursa Malaysia today, YTL Power said YTL Power Generation had won the short-term capacity bid called by the Energy Commission (EC).

"This follows the successful completion of the 21-year power purchase agreement (PPA) entered into between YTL Power and Tenaga Nasional Bhd on Sept 30, 2015," it said.

To recap, the PPA was signed on March 31, 1993 for both its Paka plant and its 404MW power plant in Pasir Gudang, Johor, which had expired last month. The EC has yet to renew YTL Power's PPA for the latter as it needs to fulfil certain conditions before the renewal is granted.

Meanwhile, YTL Power said it has registered its interest to participate in the New Enhanced Dispatch Agreement (NEDA), as per the recent ruling by the EC. YTL Power said it is looking forward to the introduction of a competitive market in the local electricity supply industry.

NEDA was launched by the EC on Sept 29 in a bid to ensure cost effective power generation, which will be fully implemented by the first quarter of 2016.

YTL Power shares closed unchanged at RM1.55 today, giving it a market capitalisation of RM11.96 billion.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

 

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