End of Malaysia’s old PPA regime


I say, sustainable batteries is the new wave.

Dateline 2019-09-19, Borneo Post:

KUCHING: The possibility of a 10-year masterplan to reform the domestic power industry called MESI 2.0 will spell the end of the Power Purchase Agreement (PPA) era.

Although there is still lack of details, the Energy, Technology, Science, Climate Change and Environment Minister Yeo Bee Yin did reveal some insights during a briefing.

Affin Hwang Investment Bank Bhd (AffinHwang Capital) said there will be drastic changes to the PPA for new power plants, as the government intends to shorten the tenure of a PPA from the typical 21-years previously.

“The new PPAs will also no longer be entitled to lock-up guaranteed electricity payments, as moving forward, independent power producers (IPPs) are able to procure their own fuel source, and the single buyer would then in theory procure electricity from the cheapest generator.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: