TENAGA Nasional Bhd (TNB) has agreed to purchase electricity from KUB-Berjaya Energy Sdn Bhd for a period of 21 years at an estimated cost of about RM1.84 million annually.

Both parties today signed a Renewable Energy Power Purchase Agreement (REPPA), whereby, TNB will purchase the electricity generated by a small renewable energy power project developed by KUB-Berjaya Energy, under the Very Small Renewable Energy Power (VSREP) progamme.

The programme was launched by the government in May 2001 to promote the utilisation of renewable energy in power generation and to reduce emission of greenhouse gases.

The signing demonstrates the continuous support given by TNB for the success of this programme, the national utility giant said in a filing with Bursa Malaysia today.

TNB said the renewable energy power plant developed by KUB-Berjaya, which utilises landfill gas (methane gas) as fuel, is located in Bukit Tagar, Selangor and has an export capacity of 1.0 megawatt.

The signing of the REPPA would not have any effect on the issued and paid up capital or earnings and net assets of TNB Group or on the shareholding of its substantial shareholders.-- BERNAMA