KUALA LUMPUR (Aug 19): Civil engineering solutions provider and builder Advancecon Holdings Bhd has obtained a four-year extension from the Energy Commission (EC) to the 21-year power purchase agreement (PPA) with Tenaga Nasional Bhd that it was awarded for the development of a large scale solar photovoltaic plant of 26 MW in Kuala Langat.
The EC also granted the extension to the financial close date from June 30, 2022 to Sept 30, 2022, while the scheduled commercial operation date was extended to Dec 31, 2023, Advancecon said in a bourse filing.
This announcement made Advancecon among Large Scale Solar 4 (LSS4) @ MEnTARI programme project owners that have been granted PPA extension. The others who have obtained similar extension are KPower Bhd, Ranhill Utilities Bhd and MK Land Holdings Bhd.
The PPA extension for LSS4 project owners was first reported by The Edge early this month, citing sources. It is understood that the extension was granted by EC after taking into consideration how the viability of certain projects had been affected given that solar panel prices had increased by 30% to 50% since the bids were submitted in 2020.
Following the extension, Advancecon said the PPA's tenure will be 25 years. All related agreements and warranties will also be extended to align with the latest effective PPA period.
Advancecon's share price closed one sen or 3.7% higher at 28 sen on Friday (Aug 19), giving the group a market capitalisation of RM137.97 million.