TNB signs PPA with Powertek

KUALA LUMPUR: Tenaga Nasional Bhd (TNB) has signed a new power purchase agreement (PPA) with Powertek, a wholly owned subsidiary of 1Malaysia Development Bhd for an extension of three years ten months following a conditional letter of award by Energy Commission to Powertek in August 2015.

“This new PPA governs the rights and obligations of both parties throughout the term of the extension and on the sale and purchase of all the capacity and the electrical energy generated by Powertek from its 434MW open-cycle power plant located at Telok Gong, Melaka,” TNB said in a filing with Bursa Malaysia.

Three of the units in the Powertek Facility is scheduled to commence operations from March 1, 2016 until Dec 31, 2019 while, another unit is scheduled to commence operation from March 15, 2016 until Dec 31, 2019.

TNB and Powertek had on Dec 10, 1993 executed an original PPA for the sale and purchase of all the capacity and the electrical energy generated by the Powertek facility in accordance with the terms and conditions set out in the original PPA. The original PPA has expired on Jan 13, 2016.

The utility giant said the signing of the PPA would not have any effect on the issued and paid-up share capital and the substantial shareholders’ shareholdings of TNB and would have a “neutral impact on the earnings of TNB” over the term of the extension.