TNB Signs Supplementary PPAs & Extension of PPAs With Track 2 Successful Bidders

27/02/2013

TNB signed Supplementary Power Purchase Agreements (Supplementary Agreements) and new Power Purchase Agreements (new PPAs) with Genting Sanyen Power Sdn Bhd, Segari Energy Ventures Sdn Bhd and TNB Pasir Gudang Energy, a wholly - owned subsidiary of TNB which was formerly known as Sultan Iskandar Power Station. The signing follows Suruhanjaya Tenaga’s (ST) announcement in October 2012 on the three selected bidders under Track 2 tender for first generation Independent Power Producers (IPPs). Track 2 is a restricted tender organised by ST for the renewal of the operating licenses of the first generation IPPs and TNB plants. ST has awarded the extensions to these IPPs to secure generation capacity to meet growing demand from 2016 onwards at the lowest energy cost and with minimum completion risks. TNB’s Chairman, Tan Sri Leo Moggie in his speech described the agreements signed on 25 February 2013 as a great milestone for the IPPs involved and also for TNB. “The selected IPPs will execute supplementary agreements reflecting their reduced capacity rate financial (CRF) offer compared to the figure that is in the current PPAs.” Such reduced rates will be effective from March 1, 2013 until the end of their initial PPA term, which is in 2016 for Genting Sanyen Power (GSP) and 2017 for both Segari Energy Ventures (SEV) and TNB Pasir Gudang Energy (TPGE). The new PPAs, which will take effect immediately after the expiry of the supplementary agreements, would provide for the extension period of 10 years for GSP and SEV, and five years for TPGE. “I hope the execution of these agreements will further enhance and strengthen the relationship and bilateral cooperation between the parties involved and TNB for the benefit of the Rakyat,“added Tan Sri Leo Moggie.