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YTL’s 21-Year PPA Expires

05/10/2015

A Power Purchase Agreement (PPA) between Tenaga Nasional Berhad (TNB) and YTL Power Generation Sdn. Bhd. (YTL), which was inked on 31st March 1993 has expired on 30th September 2015.
With the expiry, YTL no longer export power to the Grid effective from 1st October 2015. Concurrently, a Leasing Agreement which YTL entered into with TNB to lease the latter's land in Paka, Terengganu and Pasir Gudang, Johor to build its power stations was also affected.
For the record, the PPA was the first PPA signed between TNB and an Independent Power Producer (IPP), and the only PPA that was based on Take-or-Pay mechanism for a period of 21 years.
The total capacity of the power station in Paka is 780 Megawatt (MW), consisting two blocks of 390 MW combined cycle gas fired generating facility. The capacity of the power station in Pasir Gudang is 390 MW (one block of combined cycle gas fired generating facility).



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