SUBANG JAYA: Tenaga Nasional Bhd (TNB) has signed an agreement to purchase 1.7MW of electricity worth RM3.1mil a year from Bell Eco Power Sdn Bhd over a 21-year period.

Under the renewable energy power purchase agreement (REPPA), Bell Eco will build a palm oil mill effluent waste plant costing RM11mil with an installed capacity of 2MW in Batu Pahat, Johor.

The REPPA was the 11th in Peninsular Malaysia, bringing the total combined installed capacity to 49.7MW, chairman Tan Sri Leo Moggie said at the signing of the agreement with Bell Eco yesterday.

He said TNB was also negotiating similar deals to “ensure the success of the renewable energy programme.”

Meanwhile, Moggie said TNB was always looking at expanding its power generation capacity, reaffirming the national utility’s interest in Genting Bhd’s power assets.

“We are always interested in opportunities. We have already indicated our interest,” he said, adding that talks were still in the preliminary stage.

Moggie said other parties, including foreign parties, were also interested in Genting’s assets.

“It will be a commercial decision of who can pay the highest price. The assets owned by Genting are not only local assets, but also foreign. They own a plant in India and China, so we need to value these overseas assets,” he added.

Moggie said TNB hoped to reopen talks with independent power producers to review the existing power purchase agreements.

“The Government has given us the signal. When the time is appropriate, we will invite them. We have not met them (but) when we think the time is right, we will call them,” he said.