KUALA LUMPUR (April 4): Tenaga Nasional Bhd (TNB) said its wholly-owned unit Vantage RE Ltd has completed its acquisition of a 100% stake in a 97.3 megawatts (MW) onshore wind portfolio in the UK from a number of funds advised by independent global private asset management firm Capital Dynamics for £145.9 million (RM807.74 million).
This acquisition, following TNB’s maiden venture into the UK offshore wind market last October, marks another significant milestone in the utility giant’s strategy to grow its global renewable energy (RE) portfolio while strengthening its presence in a focus market.
According to TNB’s statement, the wind portfolio comprises operational onshore wind farms across 11 sites in the UK that were developed under either the Feed-in Tariff or Renewable Obligation Certificate subsidy regimes, which are expected to provide stable long-term revenues.
Upon the completion of this acquisition, Vantage RE’s total operational RE capacity will grow by 23% from 433MW to 530MW, said TNB.
It said this additional onshore wind capacity will diversify Vantage RE’s existing RE technology mix and improve the balance of its portfolio’s electricity generation profile throughout the year.
TNB’s president and chief executive officer Datuk Baharin Din said this acquisition represents the continued success of the group’s strategy execution to expand TNB’s RE portfolio in focus markets such as the UK and Europe while accelerating TNB’s journey in delivering its global environmental, social and governance (ESG) vision.
“We firmly believe in an innate responsibility towards a better world and brighter lives anchored on TNB’s aspiration towards net zero emissions by 2050. TNB’s Sustainability Pathway is underpinned by our commitment to reduce 35% of our emissions intensity as well as 50% of our coal generation capacity by 2035,” he said.
Baharin stated that this strategic acquisition of additional operational assets that are underpinned by subsidy regimes would also allow TNB to fully benefit from stable revenues and build financial resilience to weather the economic challenges aggravated by Covid-19.
In addition, he said this will move TNB a step closer to transitioning towards a new energy future of low carbon generation consistent with the company’s Sustainability Pathway and overall ESG vision.
“The continuous development of our internal capabilities in onshore wind is key as we pursue onshore wind opportunities globally and create value through operational excellence. By acquiring this portfolio, we are building a platform to broaden our technology know-how in onshore wind and provide further capability development within the group,” Baharin added.
Shares of TNB fell 5 sen or 0.55% to close at RM9.07 on Monday (April 4), giving it a market capitalisation of RM51.94 billion.