KUALA LUMPUR, 21 Dec 2022 — Tenaga Nasional Berhad (TNB)’s wholly-owned subsidiary, Vantage RE Ltd. (Vantage RE) has signed an engineering, procurement & construction contract with BELECTRIC GmbH for the construction and commissioning of 102MW solar farms in the United Kingdom (UK).
TNB said in a statement today that the project also includes an option to develop 65MW co-located Battery Energy Storage Systems (BESS), which upon development may enhance TNB’s revenue streams through participation in ancillary services and the capacity market.
This investment represents a significant milestone for TNB as it broadens into renewable energy (RE) greenfield development in the UK, TNB said.
The solar farms are expected to achieve Commercial Operation Date (COD) by the first quarter of 2024. To be built on two sites, the farm will provide stable long-term revenues under a 15-year contract-for-difference (CfD) subsidy scheme that was awarded in July 2022.
The project delivery will be overseen by the Vantage RE team and once operational, it will generate enough clean energy to meet the equivalent annual needs of over 37,000 homes and save over 46,750 tonnes of CO2 compared to fossil fuel generation. Both sites also offer opportunities for environmental initiatives to promote biodiversity net gains, supporting TNB’s wider biodiversity agenda.
TNB president and chief executive officer Dato’ Indera Ir. Baharin Din said TNB’s experience and expertise in developing solar farms in Malaysia via large-scale solar (LSS) projects will be crucial in ensuring the project will be a success, further solidifying its presence in the UK’s RE space.
“We are pleased to be partnering with BELECTRIC as we grow our solar generation portfolio in the UK, progressing towards our global environmental, social and governance (ESG) efforts to achieve Net Zero Emissions by 2050, as outlined in TNB’s Sustainability Pathway.
This is an important step towards future-proofing TNB’s business as it transitions to a green economy and ensuring that shareholder value continues to be well protected,” he said.
According to him, the move upstream into greenfield development is in line with TNB’s aspiration in becoming a global sustainable energy provider.
The investment has grown TNB’s RE capacity in the UK to 632MW, a significant 61 per cent growth in MW capacity since the launch of Vantage RE back in July 2021, he said.
“For year-to-date third quarter of 2022, the EBITDA (earnings before interest, taxes, depreciation and amortisation) contribution from our UK RE portfolio has increased by 31.7 per cent year-on-year to GBP55.6 mil, signifying continued healthy financial performance through TNB’s active asset management approach,” he added.
— Akses Malaysia
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