Gopeng secures four-year PPA extension for solar project

KUALA LUMPUR (Aug 23): Gopeng Bhd has obtained a four-year extension from the Energy Commission (EC) to the 21-year power purchase agreement (PPA) with Tenaga Nasional Bhd that it was awarded for the development of a large-scale solar photovoltaic plant of 50-megawatt alternating current (MWac) in Kampar, Perak.

The tenure of the PPA will be 25 years after the extension.

According to Gopeng, its renewable energy unit GBS Suria Sdn Bhd had been informed of the extension by the EC via a letter, the oil palm plantation group said in a bourse filing.

The EC also granted an extension to the financial close date of the project from June 30, 2022 to Sept 30, 2022. The scheduled commercial operation date was also extended to Dec 31, 2023.

This announcement made Gopeng among Large Scale Solar 4 (LSS4) @ MEnTARI programme project owners that have been granted PPA extension. The others who have obtained similar extensions are Advancecon Holdings Bhd, KPower Bhd, Ranhill Utilities Bhd and MK Land Holdings Bhd.

The Edge, citing sources, reported on Aug 2 that the LSS4 project owners would have their PPAs extended by four years to 25 years, from 21 years previously.

It is understood that the extension was granted by the EC after taking into consideration how the viability of certain projects had been affected, given that solar panel prices had increased by 30% to 50% since the bids were submitted in 2020.

Shares in Gopeng closed 0.5 sen or 1.22% lower at 40.5 sen on Tuesday (Aug 23), giving the group a market capitalisation of RM163 million.

Source : The Edge Markets

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