TNB buys 80% interest in UK RE firms


Tenaga Nasional Bhd (TNB) has bought an 80% interest in two UK-registered renewable-energy (RE) companies for £171 million (RM924.03 million).

TNB president and CEO Datuk Seri Ir Azman Mohd (picture) said the acquisition of GVO Wind Ltd and Bluemerang Capital Ltd’s onshore wind assets is a new commercial venture for the company.

“This acquisit ion will strengthen TNB’s RE portfolio to its asset base and enhance TNB’s technical and commercial insights in the RE market space,” Azman said in a statement yesterday.

The electric utility company said the acquisition of an operating wind portfolio is a low-risk investment to the company due to the absence of planning and construction risk, with an average age of 2.5 years and an estimated life span of 25 years.

The assets are located in the UK and supported by its government-backed Feed-in Tariff (FiT) renewable support mechanism and will provide financial returns with earnings accretive from the first year.

The combined portfolio of the assets is the largest FiT wind portfolio in the UK comprising 53 operational onshore medium wind turbines, with a total combined capacity of 26.1MW.

The listed power firm noted the acquisition is part of its five-year international expansion roadmap that is in line with its RE expansion strategy to become a top global utility player by 2025.

Assisting TNB in the wind portfolio management is Longspur Capital Ltd, a power infrastructure asset manager and investor.

Longspur co-managers Catalin Breaban and Harry Bond said TNB has mandated them to assist in the management and sourcing new renewable investment opportunities for the company in the UK.

The wind portfolio acquisition was funded through internally generated funds and borrowings.

It is TNB’s second acquisition in the UK after Vortex Solar Investments Sarl’s photovoltaic (PV) assets last year, which comprises 24 solar PV farms.

The completion of this transaction has padded TNB’s international RE portfolio to have a combined net installed capacity of c.280MW and other RE assets in Turkey and India.

TNB plans to further develop its RE portfolio through greenfield development, or acquire other RE portfolio of similar or complementary technology.