Gadang Unit Signs Large Scale Solar Photovoltaic PPA With Sabah Electricity
KUALA LUMPUR, Dec 18 (Bernama) -- Gadang Holdings Bhd announced that its 60 per cent-owned subsidiary Tenaga Aspirasi Sdn Bhd (SPP) today signed a large scale solar photovoltaic power purchase agreement (PPA) with Sabah Electricity Sdn Bhd.
Gadang said in a filing with Bursa Malaysia that SPP will design, construct, test, commission, own, operate and maintain the solar photovoltaic energy generating facility with a capacity of 15 Megawatt alternating current (MWac) located at Tawau, Sabah.
It is for connection to Sabah Electricity’s medium voltage distribution network at the Kubota main distribution substation to generate and deliver solar photovoltaic energy to Sabah Electricity.
“The PPA governs the obligations of SPP and Sabah Electricity to sell and purchase the energy generated by the facility for a period of 25 years from the commercial operation date, which is expected on Nov 30, 2026, in accordance with the agreed terms and conditions as stipulated in the PPA,” it said.
According to Gadang, the signing of the PPA will not have any material impact on the earnings and net assets of Gadang and its subsidiaries for the financial year ending May 31, 2026.
“However, the PPA is expected to contribute positively to the future earnings of Gadang group,” it said, adding that the board of directors of Gadang is of the opinion that the execution of the PPA is in the best interest of Gadang group.
Previously, Gadang accepted a letter of acceptance from SPP to undertake the engineering, procurement, construction and commissioning of a 15 MWac large-scale solar photovoltaic power plant project in Tawau, Sabah worth RM52 million.
The contract was secured via a consortium comprising its wholly owned subsidiary Gadang Engineering (M) Sdn Bhd and JS Solar Sdn Bhd.
-- BERNAMA