Malaysian utility Tenaga Nasional Bhd (KLSE:TENAGA), or TNB, will get MYR 144 million (USD 35.2m/EUR 30.5m) in financial support for a 30-MW solar project in Kedah.
The company has thus reached financing close on the project.
Planned to be put into operation in the last quarter of 2020, this will be Tenaga’s second large-scale solar park at home. MUFG Bank Malaysia Bhd, part of Japan’s MUFG Bank, will extend financing and provide working capital requirements for the scheme of up to MYR 144 million, the Malaysian utility said in a bourse statement on Thursday.
The project, with a direct current (DC) capacity of 45 MWp, will be developed by special purpose vehicle TNB Bukit Selambau Solar Sdn Bhd (TBSS), a unit of Tenaga. The plant, to be located in Bukit Selambau, Kuala Muda district, has in place a 21-year power purchase agreement (PPA) secured in a tender held by Suruhanjaya Tenaga, Malaysia’s Energy Commission, in 2017.
Tenaga’s first utility-scale solar park, of 50 MW in Kuala Langat, Selangor, started power supplies to the national grid in October 2018.