TNB achieves financial close for its 30 MW solar project in Kuala Muda

Tenaga Nasional Berhad (TNB) has secured MYR144 million (US$34.89 million) financing for its second Large Scale Solar (LSS) project in Malaysia in Bukit Selambau, Kuala Muda, Kedah.

TNB’s wholly-owned subsidiary, TNB Bukit Selambau Solar Sdn. Bhd. (TBSS), together with MUFG Bank (Malaysia) Berhad (formerly known as Bank of Tokyo-Mitsubishi UFJ (Malaysia) Berhad) has recently achieved Financial Close for financing the project. The bank will be providing funding and working capital requirements for the project.

TBSS, set up as a Special Purpose Vehicle to undertake the LSS in Kuala Muda, Kedah, was awarded the project by the Energy Commission through a competitive bidding exercise. TNB and TBSS inked a 21 -year Power Purchase Agreement (PPA) for the project in early March 2018. The project is scheduled to be completed in the fourth quarter of 2020.

This LSS project has a generation capacity of 30 megawatt (MW) with DC install capacity of 45MWp. The national utility corporation’s first LSS in Kuala Langat, Selangor —currently in operation has a generation capacity of 50MW with DC install capacity of 78MWp. Both LSS project reinforces TNB’s aspiration and commitment towards the growth of renewable energy (RE) in the country.