Ranhill Utilities gets 4-year PPA extension for solar project

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KUALA LUMPUR: Ranhill Utilities Bhd’s wholly owned subsidiary Ranhill Solar I Sdn Bhd (RSI) has obtained a four-year extension of a power purchase agreement (PPA) for the 50MWac large-scale solar photovoltaic plant at Batang Padang, Perak under the LSS4@MEnTARI.

In a filing with Bursa Malaysia, Ranhill said it received a notification letter from the Energy Commission (EC) on the extension of the financial closing date (FCD), scheduled commercial operation date (SCOD), and effective period of PPA for the solar plant.

Ranhill said the project's FCD has been extended to Sept 30, 2022 from June 30, 2022 while the SCOD was extended to Dec 31, 2023.

“The revised terms for the PPA will govern the obligations of RSI and Tenaga Nasional Bhd (TNB) to sell and purchase the energy generated by the facility to TNB for a period of 25 years from the commercial operation date. With the new effective period announced, the facility will be operated and maintained up until 2048,” Ranhill said.

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“The new effective period of the PPA will be stipulated under the supplementary agreement of PPA which will be signed between RSI and TNB,” it added.

Ranhill expects the supplementary agreement of PPA to contribute positively to the future earnings of Ranhill Group.