China General Nuclear Power (CGN) subsidiary, Edra Energy, has signed a 21-year Power Purchase Agreement (PPA) with Malaysian power utility company Tenaga, and plans to build a 2.24 terawatt gas-fired combined cycle power plant in Alor Gajah, Malacca.

Shenzhen-based CGN is the largest nuclear power operator in China, and the largest nuclear power constructor worldwide. Edra Power Holdings Bhd is headquartered in Kuala Lumpur, and is one of the leading clean energy groups in Southeast Asia, focusing on gas power generation.

Edra has 13 power projects with a total installed capacity of 6.62 gigawatts located in five countries along the Belt & Road: Malaysia, Egypt, Bangladesh, the United Arab Emirates, and Pakistan. All the projects have long-term power purchase agreements. The company is the second largest independent power producer in Malaysia, and the largest in Egypt and Bangladesh.

A Bursa Malaysia announcement from Tenaga Nasional Berhad (TNB) dated April 11 said that the PPA had been signed with Edra Energy Bhd, a wholly owned subsidiary of Edra Power Holdings.

The statement said that Edra will construct, own, operate and maintain a gas-fired combined cycle electricity generating facility with a total nominal capacity of 2.24 terawatts, proposed to be located at Alor Gajah.

The Facility will consist of three generating blocks, with each generating block having a capacity of 747 gigawatts and an expected commercial operation date of January 1 2021 for the first generating block, March 1 2021 for the second generating block, and May 1 2021 for the third generating block. The PPA will be for a period of 21 years from the commercial operation date of the first generating block. TNB is the biggest listed company in Malaysia, and is the sole power offtaker in Malaysia.

CGN acquired Edra in 2015 from state investment company 1Malaysia Development Berhad. 1MBD put its energy assets up for sale in via an international tender process, and CGN came up with a 9.83 billion-ringgit cash offer (US$2.3 billion). Edra Global Energy was a wholly owned subsidiary of 1MBD.

Scandal plagued-1MBD has generated considerable controversy in Malaysia. Addressing previous allegations related to 1MBD Solar, in November 2015 1MBD put out a statement about "unsubstantiated allegations being made by certain opposition politicians, who have selectively extracted and misrepresented information relating to 1MDB."

Photo courtesy of China General Nuclear Power.