After Ranhill and KPower, now MK Land gets four-year PPA extension for solar project

• MK Land is among the Large Scale Solar 4 (LSS4) @ MEnTARI programme project owners that have been granted PPA extension. Others are KPower Bhd, with its LSS4 project located in Pahang, and Ranhill Utilities Bhd, with its LSS4 project located in Perak.

KUALA LUMPUR (Aug 16): The Energy Commission (EC) has granted MK Land Holdings Bhd a four-year extension to its power purchase agreement (PPA) for its 10.95 MW Large Scale Solar Photovoltaic Plant (LSSPV) in Kerian, Perak.

Consequently, the tenure of the PPA will be 25 years after the extension.

In addition, the EC also allowed the scheduled commercial operation date of the LSSPV project to be delayed by one year to Dec 31, 2023, according to MK Land's filing with the stock exchange.

MK Land said related agreements and warranties will be extended and aligned with the latest effective PPA period of 25 years.

It added that the supplementary agreement of PPA is expected to contribute positively to the group's future earnings.

MK Land is among the Large Scale Solar 4 (LSS4) @ MEnTARI programme project owners that have been granted PPA extension. Others are KPower Bhd, with its LSS4 project located in Pahang, and Ranhill Utilities Bhd, with its LSS4 project located in Perak.

It is understood that the extension was granted by EC after taking in consideration of how the viability of certain projects has been affected given that solar panel prices have increased by 30% to 50% since the bids were submitted in 2020.

MK Land's share price slipped half a sen or 3.33% to settle at 14.5 sen on Tuesday (Aug 16), giving it a market value of RM175.05 million. The counter has fallen 19.44% year-to-date.