Malaysia's TNB achieves timely fin close for 50-MW solar project

Malaysian utility Tenaga Nasional Bhd (KLSE:TENAGA), or TNB, said today it has reached financial close for a 50-MW/75-MW-DC solar project in Kedah after obtaining debt from CIMB Islamic Bank Bhd.

The milestone was achieved on September 30, according to the set deadline. The utility was initially due to reach the financial close date (FCD) by June 30, 2022, but the deadline was later pushed back until September 30, 2022, upon the company’s request.

Project vehicle TNB Bukit Selambau Solar Dua Sdn Bhd (TBSS2) has secured up to MYR 185 million (USD 39.3m/EUR 40.3m) for the project at Bukit Selambau. It will execute the project under the Round Four of Malaysia’s Large Scale Solar (LSS) programme and will operate the photovoltaic (PV) park under a power purchase agreement (PPA) with TNB.

The TBSS2 park is expected to start feeding electricity into the grid in December 2023. Its future output will be bought by TNB for 25 years, following an extension to the original PPA term.

TNB aims to have 7 GW of renewable energy plants in operation by 2030, in line with its goal to become net zero and coal-free by 2050.

(MYR 1.0 = USD 0.213/EUR 0.218)

Choose your newsletter by Renewables Now. Join for free!