Ranhill Utilities Berhad together with its wholly-owned subsidiary, Ranhill Solar I have signed a Large-Scale Solar 4 @ Mentari Photovoltaic Power Purchase Agreement with Tenaga Nasional Berhad for the construction and operation of a 50MWa.c. Solar Photovoltaic Energy Generating Facility.
The energy produced by the Facility will be sold under a long-term PPA, directly to TNB for 21 years from the commercial operation date. Under the contract, Ranhill Solar will design, construct, own, operate, and maintain solar photovoltaic energy generating facility in Batang Padang, Perak.
This will be Ranhill’s first venture into asset ownership of large scale solar project although its other subsidiaries have previously provided professional services in the development of photovoltaic solar projects. The company will now be the Engineering, Procurement, Construction and Commissioning (“EPCC”) contractor as well as operate and maintain the Facility.
Ranhill is currently an independent power producer having been in the business since 1998, it owns and operates two combined cycle gas turbine in Kota Kinabalu Sabah.
Tan Sri Hamdan Mohamad, Ranhill’s President & Chief Executive said, “Earlier this year, we were identified and Shortlisted Bidder for the LSS4@Mentari program to develop large scale solar plants, and this showed that we are fully committed to our venture into the Solar Energy sector. Ranhill focuses on sustainability in all our business operations, and that has led us to actively pursue the cause to continuously reduce our carbon footprint as a company by growing our renewable energy portfolio”.
The contract is will will provide the group with a recurring income until 2042, which will contribute positively to its projected earnings and strengthen its bottom line.
