Gadang signs power purchase agreement to develop solar PV plant in Sabah
22 Dec 2021
Gadang Holdings Bhd announced on Wednesday (Dec 22) that its indirect 70%-owned subsidiary Nusantara Suriamas Sdn Bhd (NSSB) has signed a power purchase agreement (PPA) for a large-scale solar energy project with Sabah Electricity Sdn Bhd (SESB).
NSSB will design, construct and operate a solar photovoltaic energy generating facility with a capacity of 5.9 Megawatt alternating current (MWac) in Tawau, for connection to SESB’s medium voltage distribution network at PPU Sri Indah.
“The PPA governs the obligations of NSSB and SESB to sell and purchase the energy generated by the facility for a period of 21 years from the commercial operation date which is expected on June 30, 2023,” said Gadang in a bourse filing, adding that the PPA is expected to contribute positively to its future earnings.
In January 2017, Gadang said its joint venture consortium with BT Solar Sdn Bhd called RUSB-BTS had accepted the letter of acceptance of an offer from the Energy Commission for the development of a large-scale solar PV plant in Sabah.
Gadang’s shares closed unchanged at 35 sen, giving it a market capitalisation of RM254.82 million.
Source: The Edge Markets
