YTL Power

YTLP, which has a 21-year PPA with TNB until 2015, has a positive potential extension for its first generation PPA as a power plant in operation is better than an idle one. However concerns are over its lower internal rate of return from the power purchase agreement (PPA) extension. The power purchase agreements (PPAs) for the first generation power plants, including YTL Power’s plants, will start to expire beginning 2016. If talks to renew the first generation PPAs’ fail, the government would have to plant up 10, 000 MW of power in the next two to three years. In partnership with Enefit, YTL Power estimates that it can produce power via oil shale 30% cheaper than electricity generated via imported oil and gas feedstock.