One of the IPPs is a 700MW gas power plant held by Malakoff and TNB.
Malaysia has terminated four independent power producers (IPP) as it aims to save consumers up to RM1.26b in electricity tariffs, local media report.
According to energy minister Yeo Bee Yin, Malaysia's electricity reserve margin is still at 32% and the four projects will raise it far higher than what is needed, increasing consumers' capacity payment.
The terminated IPP are: Malakoff Corporation Bhd and Tenaga Nasional Bhd (TNB) 700MW Gas Power Plant in Kapar, Selangor; Aman Majestic Sdn Bhd and TNB Gas Power Plant 1,400MW Gas Power Plant in Paka, Terengganu; Sabah Development Energy Sdn Bhd and SM Hydro Energy Sdn Bhd 300MW Gas Power Plant in POIC Sandakan Sabah; and Edra Power Holdings Sdn Bhd 400MW Solar Power Plant.
The minister added that the projects were awarded through direct negotiations and they could not guarantee competitive terms for the government in the PPA.
According to The Edge Markets, this has dampened Malakoff Corp Bhd's growth prospects. Its share price has been on a two-year downtrend and has fallen to less than half of its initial public offering price of RM1.8 in 2015.
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