Tan Chong gets 4-year extension for its solar project PPA

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KUALA LUMPUR: Tan Chong Motor Holdings Bhd has obtained a 4-year extension for the development of large-scale solar photovoltaic plant (LSSPV) of 20MW at Hulu Selangor, Selangor.

In a filing with Bursa Malaysia, Tan Chong said its indirect 51% owned subsidiary, TC Sunergy Sdn Bhd had received a notification letter from Energy Commission (EC) on the extension of the scheduled commercial operation date (SCOD) and effective period of the power purchase agreement (PPA) for the project.

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It said the SCOD for the LSSPV on Dec 31, 2023 remained unchanged while the effective period of the PPA has been extended from 21 years to 25 years.

“A supplementary PPA will be executed between TC Sunergy and Tenaga Nasional Bhd to set forth the aforesaid changes,” it said, adding that the supplementary PPA is expected to contribute positively to the future earnings of the group.