YTL Power's Paka plant gets two-year extension
main news image

This article first appeared in The Edge Financial Daily, on October 9, 2015.

 

KUALA LUMPUR: 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 808mw 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 yesterday, YTL Power said YTL Power Generation has 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 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 was 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 yesterday, giving it a market capitalisation of RM11.96 billion.

Print
Text Size
Share