TNB secures fund for large-scale solar project in Bukit Selambau

CIMB Islamic Bank will provide debt funding for around $39.2m.

TNB, through its special purpose vehicle company, TNB Bukit Selambau Solar Dua Sdn Bhd, has reached financial close for its large-scale solar (LSS) project in Bukit Selambau, Kuala Muda in Kedah Malaysia for around $39.2m (RM185m).

In a statement, TNB said the financing for a solar project with a 50-megawatt alternating capacity will be provided by the CIMB Islamic Bank Berhad through debt funding.

The project, which is part of the government’s Large Scale Solar@Mentari or Large Scale Solar 4 Programme, is expected to start commercial operation in December 2023.

TNB’s third LSS project in Bukit Selambau is being developed on an area spanning 175 acres, next to its second LSS in the area.

The vehicle company signed a 21-year power purchase agreement for the development of the LSS facility in August 2021.

“The LSS project will contribute to the energy transition that will also open up new opportunities for TNB’s business growth and long-term sustainability, as well as spur new economic catalysts for Malaysia,” said TNB President and CEO Dato’ Indera Ir. Baharin Din.

$1 = RM4.71