Kuala lumpur: Malakoff Corporation Bhd announced that its 80 percent-owned subsidiary, Malakoff Silver Solar Sdn Bhd (MSSSB), has secured a 21-year power purchase agreement (PPA) with Tenaga Nasional Bhd (TNB) for a significant solar photovoltaic project in Perak. This 470-megawatt alternating current (MWac) project marks a substantial step in renewable energy development within the region.

According to BERNAMA News Agency, the PPA stipulates that MSSSB will develop, own, and operate a solar photovoltaic facility located at Windsor Estate in Larut and Matang. The electricity generated will be sold to TNB throughout the contract period, commencing from the scheduled commercial operation date anticipated in the first quarter of 2028. This agreement outlines the sale and purchase terms of the electricity produced over a 21-year span.

Malakoff Corporation has stated that the PPA's signing is not expected to significantly impact the net assets and earnings of the Malakoff group for the fiscal year ending December 31, 2025. However, the company anticipates a positive contribution to future earnings from the facility once commercial operations begin, extending over the length of the agreement. The company has also addressed potential risks, noting that there are no extraordinary risks anticipated beyond normal operational challenges, and plans are in place to mitigate any that arise.

MSSSB, a special purpose vehicle, was established to undertake this project and is co-owned by Malakoff and Solarvest Holdings Bhd, holding 80 percent and 20 percent of shares, respectively. Solarvest, in a separate filing, confirmed that Malakoff Silver will be responsible for the design, construction, ownership, operation, and maintenance of the solar facility. The project aims to generate, deliver, and sell solar energy to TNB over the agreement's duration, with expectations of positive earnings contributions from the operational date through the 21 years.