PETALING JAYA: Analysts are overall positive on Tenaga Nasional Bhd
(TNB) in successfully securing the 1.4 gigawatts (GW) combined-cycle gas turbine (CCGT) plant in Paka, Terengganu, although the impact on the company’s earnings will be minimal.
BIMB Research said it views these developments as positive for TNB on two fronts.
“Firstly, the new 1.4GW Paka CCGT plant will increase the company’s peninsular gross capacity by 9.3% to 16.7GW, reinforcing its generation footprint.
“Secondly, both the new award and the power purchase agreements (PPA) extensions are earnings-accretive, underpinned by structurally lower generation costs, as Tenaga can secure more competitive capacity charges compared with independent power producers,” it added.
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