Gadang Holdings Bhd, together with joint venture partner Hotrend Corporation Sdn Bhd, has signed a 25-year power purchase agreement (PPA) with Sabah Electricity Sdn Bhd for a 15MW large-scale solar project in Tawau, Sabah.
The agreement was signed by Tenaga Aspirasi Sdn Bhd, the project company, which is 60% owned by Gadang’s wholly owned subsidiary, Regional Utilities Sdn Bhd, and 40% by Hotrend.
Under the PPA, Tenaga Aspirasi will be responsible for designing, building, operating and maintaining the solar photovoltaic plant, which will be connected to Sabah Electricity’s Kubota main distribution substation.
The PPA covers the sale and purchase of electricity generated by the plant for 25 years, starting from the commercial operation date, which is expected on 30 November 2026.
The Tawau solar project was awarded to the Gadang-led JV in December last year by the Energy Commission of Sabah following a competitive bidding process for large-scale solar developments in the state.
Gadang shares closed unchanged at 25.5 sen, giving the group a market capitalisation of RM204.22 million.
