TNB secures RM144m financing for its second largest solar project

KUALA LUMPUR: Tenaga Nasional Berhad (TNB) has secured RM144 million financing for its second Large Scale Solar (LSS) project in Malaysia in Bukit Selambau, Kuala Muda, Kedah.

TNB’s wholly-owned subsidiary, TNB Bukit Selambau Solar Sdn Bhd (TBSS), together with MUFG Bank (Malaysia) Berhad (formerly known as Bank of Tokyo-Mitsubishi UFJ (Malaysia) Berhad) has recently achieved Financial Close for financing the project.

The bank will be providing funding and working capital requirements for the LSS project up to RM144 million.TBSS, set up as a Special Purpose Vehicle to undertake the LSS in Kuala Muda, Kedah, was awarded the project by the Energy Commission through a competitive bidding exercise.

TNB and TBSS inked a 21 -year Power Purchase Agreement (PPA) for the project in early March 2018. The project is scheduled to be completed in the fourth quarter of 2020.

This LSS has a generation capacity of 30 megawatt (MW) with DC install capacity of 45MWp.

The national utility corporation’s first LSS in Kuala Langat, Selangor —currently in operation has a generation capacity of 50MW with DC install capacity of 78MWp.Both LSS project reinforces TNB’s aspiration and commitment towards the growth of renewable energy (RE) in the country.

The Energy, Science, Technology, Environment and Climate Change Ministry has set a target of 20 per cent of the country’s electricity to be generated from renewable sources by 2030, an increase from the current two per cent.

Source: NST