KUALA LUMPUR (March 19): Samaiden Group Bhd (KL:SAMAIDEN) has signed a 21-year power purchase agreement (PPA) with Tenaga Nasional Bhd (KL:TENAGA) for the construction and operation of a solar photovoltaic energy generating facility.
Under the agreement, Samaiden's wholly-owned unit Samaiden Legasi Timur Sdn Bhd will undertake the connection of the solar plant to TNB’s high-voltage distribution network at project sites under the Large Scale Solar 5 (LSS5) programme.
The announcement follows Samaiden’s selection in December by the Energy Commission to develop a 99.99-megawatt (MW) large-scale solar photovoltaic plant in Pasir Mas, Kelantan. The project falls under Package 3 of the LSS5 programme.
LSS5 is Malaysia’s largest solar farm tender to date, comprising four packages totalling 2,000MW. Package 3 is designated for projects with capacities ranging between 30MW and 500MW.
Under the PPA, TNB will purchase the net energy output from Samaiden’s facility, capped at a maximum annual allowable quantity of 257,988.14 megawatt-hours (MWh) over a 21-year period, starting from the scheduled commercial operation date of Oct 11, 2027.
“This project represents not only a significant expansion of our portfolio but also a long-term revenue stream that will support our financial sustainability,” Samaiden group managing director Datuk Chow Pui Hee said.
“With the government’s ambitious goal of achieving a 70% renewable energy mix by 2050, we are proud to contribute to this vision by developing one of the largest solar projects under the LSS5 programme,” she added.
Samaiden said the signing of the PPA is not expected to have an immediate material impact on the group’s net assets and earnings for the financial year ending June 30, 2025. However, the solar facility is expected to generate positive earnings over its 21-year operational lifespan, strengthening the group’s long-term revenue base.
Shares of Samaiden closed two sen or 1.08% lower at RM1.08 on Wednesday, giving the group a market capitalisation of RM452.96 million.