Tenaga Nasional Bhd.'s (TNB) wholly-owned subsidiary TNB Renewables Sdn., Bhd. will acquire a 39 per cent stake in a 21.6MW project comprising of five rooftop solar plants in Vietnam from Singapore’s Sunseap Group.
The deal will serve as a beachhead for Tenaga in the Vietnamese solar market
In a filing to Bursa Malaysia today, TNB said this acquisition extends TNB’s collaboration with Sunseap, beyond the Malaysia and Singapore cross-border partnership, to capture the rapid growth in the Vietnamese renewable energy market, as reported by The Malaysian Reserve.
The acquired project has secured the Feed-in Tariff (FiT) 2 rates in Vietnam. Having achieved commercial operation date in December 2020, all five plants are under 20-year Power Purchase Agreements (PPAs) with EVN to supply clean energy to the national grid.
Sunseap currently holds a 90 per cent stake in the projects, which will be reduced to 51 per cent upon completion of the 39 per cent stake acquisition by TNB Renewables slated for the first quarter of this year. Sun Times Energy JSC, an existing shareholder of the project, will continue to own 10 per cent equity interest in the project, according to TNB.
“This acquisition will serve as a beachhead for TNB to establish a local presence in Vietnam and expand into the rapidly growing renewable energy and utility market in Vietnam. This acquisition builds on our earlier Malaysia-Singapore cross-border collaboration with Sunseap and demonstrates our commitment in transforming TNB into a regional renewable energy and utility player,” said TNB’s president and CEO Datuk Ir. Baharin Din.