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PETALING JAYA: Ranhill Utilities Bhd’s wholly owned subsidiary, Ranhill Solar I Sdn Bhd (RSI), has obtained a four-year extension of a power purchase agreement (PPA) to develop a 50 megawatt solar power plant under large scale solar phase 4@MEnTARI (LSS4) in Perak.

In a filing with Bursa Malaysia yesterday, the utility company said it had received a letter from the Energy Commission (EC) on the four-year extension agreement.

The PPA will now be for 25 years instead of 21 years previously.

Ranhill Utilities also stated that the EC has given RSI an additional three months, till Sept 30, to do its financial closing for the project.

The scheduled commercial operation date was extended to Dec 31, 2023.

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Under the agrement signed between Ranhill and Tenaga Nasional Bhd (TNB) in 2021, the former will construct and operate a 50MW solar photovoltaic energy generating facility in Batang Padang, Perak.

With the revised terms in the new agreement, the company said it will undrtake to operate and maintain the power facility up to 2048.

“The new effective period of the PPA will be stipulated under the Supplementary Agreement of PPA which will be signed between RSI and TNB,” it said.

Ranhill Utilities added that the signing of the supplementary of PPA is expected to contribute positively to the future earnings of the group.