Malakoff Subsidiary Enters Into 21-Year PPA With TNB For Perak Solar Project

KUALA LUMPUR, Dec 19 (Bernama) -- Malakoff Corporation Bhd said its 80 per cent-owned subsidiary, Malakoff Silver Solar Sdn Bhd (MSSSB), has entered into a 21-year power purchase agreement (PPA) with Tenaga Nasional Bhd (TNB) for a 470-megawatt alternating current (MWac) solar photovoltaic project in Perak.

Malakoff said that under the PPA, MSSSB will develop, own, and operate a solar photovoltaic facility at Windsor Estate in Larut and Matang, and sell the electricity generated to TNB throughout the contract period.

“The PPA sets out the terms under which the electricity generated by the facility will be sold to and purchased by TNB for 21 years commencing from the scheduled commercial operation date, which is expected in the first quarter of 2028,” it said in a stock exchange filing.

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The company said the signing of the PPA is not expected to have any material effect on the net assets and earnings of the Malakoff group for the financial year ending Dec 31, 2025. “However, the Malakoff group expects positive future earnings contribution from its facility from the commercial operation date for the span of 21 years,” it added.

Malakoff also said it does not foresee any exceptional risks other than the normal operational risks associated with the facility and will take the necessary steps to mitigate such risks as and when they occur.

MSSSB is a special purpose vehicle established to undertake the project and is jointly owned by Malakoff and Solarvest Holdings Bhd, with shareholdings of 80 per cent and 20 per cent, respectively.

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In a separate filing,  Solarvest said Malakoff Silver will design, construct, own, operate, and maintain a 470-megawatt alternating current (MWac) solar photovoltaic energy-generating facility located at Windsor Estate in Larut and Matang, Perak. “The project will generate, deliver, and sell solar photovoltaic energy to TNB throughout the term of the PPA,” it said, adding that it expects positive future earnings contribution from the facility from the commercial operation date over the 21 years.

-- BERNAMA