TNB inks deals with three track 2 IPPs
Tenaga Nasional Bhd (TNB) has signed supplementary power purchase agreements and new power purchase agreements with the three Track 2 successful bidders.
The Track 2 is a restricted tender organised by the Energy Commission for the renewal of the operating licenses of the first generation Independent Power Producers (IPP) and TNB plants.
The successful bidders announced by the EC were Genting Sanyen Power Sdn Bhd, Segari Energy Ventures Sdn Bhd and TNB Pasir Gudang Energy Sdn Bhd (formerly known as Sultan Iskandar Power Station).
The extensions were awarded to the IPPs to secure generation capacities to meet growing demand starting 2016 at the lowest energy cost and with minimum completion risks.
TNB said the supplementary agreements would provide for the reduced rates offered by the successful bidders.
"The reduced rates in the supplementary agreements will be effective beginning March 1, 2013 until the expiry of the bidders' respective current power purchase agreement or service level agreement in the case of TNB Pasir Gudang," the national utility giant said in a filing to Bursa Malaysia, today.
The new power purchase agreements will provide for the extension periods of 10 years for Genting Sanyen and Segari Energy and five years for TNB Pasir Gudang.-- Bernama