Solarpack has announced the award of a long-term PPA for one of its projects under development in Malaysia. The 116 MW Suria Sungai Petani plant.
Solarpack Corporación Tecnológica has announced the award of a long-term power purchase agreement (PPA) for one of its projects under development in Malaysia. The award, which is the result of the competitive process launched by the Malaysian Energy Commission in February 2019, will imply the signing in the coming weeks of a 21 year long PPA for its “Suria Sungai Petani” project, which is located in the district of Kedah in northern Malaysia, and will produce about 180 GWh of solar energy per year. The project must achieve commissioning before December 31, 2021, as per the terms of the PPA.
Solarpack began its activity in Malaysia in 2016, when it started the development of a portfolio of projects aimed at participating in the bidding rounds planned by the Malaysian Government.
In August 2019, the Company presented an offer for the sale of the energy of its 116 MW Suria Sungai Petani project, winning approximately 20% of the total bid at a sale price of 231.8 Ringgits/MWh (equivalent to approx. USD 56/MWh). A total of 112 energy sale bids were submitted to this bidding round, out of which 5 have been finally awarded. The PPA assures energy sales for Solarpack exceeding 800 million Ringgits (equivalent to approximately USD 195 million) during the life of the contract.
With this award, the company has accumulated a total of 215 MW of new Backlog entries in 2019 (including 100 MW of EPC for third parties awarded in Spain), which are incremental to the 510 MW of Backlog, or a contracted portfolio, with which the Company went public in December 2018. In this way, Solarpack takes another step towards its goal of executing on average between 150 and 300 MW per year beyond 2019.
In July 2018, we had reported that the firm had closed the financing of 3 solar photovoltaic plants in Spain for a total of 59 million euros, divided into a VAT financing tranche and a senior Project Finance tranche. The plants have 100 MW of power allocated from the energy auction that took place in Spain in 2017 and will have a total installed module capacity (DC power) of 112 MW.