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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.