TNB makes foray into Singapore’s RE market

The collaboration marks an important milestone for the expansion of TNB’s international RE footprint into South-East Asia


TENAGA Nasional Bhd’s (TNB) wholly-owned subsidiary, TNB Renewables Sdn Bhd, has entered into a binding term sheet of collaboration with Singapore-based Sunseap Group to tap into the island nation’s renewable energy (RE) and corporate power purchase agreement (PPA) market.

The collaboration marks the power utility’s first foray into Singapore’s RE market, TNB noted in a Bursa Malaysia filing yesterday.

TNB president and CEO Datuk Baharin Din said the collaboration will, among others, target strategic clients such as RE100 companies and multinational corporations.

“The group will be well-positioned to tap into the attractive and rapidly growing corporate PPA segment,” Baharin said in a statement.

He said the collaboration is also timely as it is in anticipation of the tender launch by Singapore’s Energy Market Authority (EMA) for a trial of the Malaysia-Singa- pore cross-border energy supply which is expected to be launched this month.

In October last year, EMA announced Singapore will be embarking on a two-year trial for electricity imports of RE from the Peninsular Malaysia to the republic.

EMA said it planned to issue a request for proposal (RFP) by this month for 100 megawatts (MW) of electricity imports, which will make up about 1.5% of Singapore’s peak electricity demand.

Under the RFP, EMA said electricity imports could begin as early as end-2021.

Baharin said the collaboration is an important milestone for the expansion of TNB’s international RE footprint into South-East Asia.

At present, he said TNB’s total RE portfolio consists of 2,732.3MW in Malaysia, including 2,536.1MW of large hydro, and 666MW across the UK, Turkey and India comprising mainly solar, wind and hydro energy generation assets.

TNB aims to grow its overall RE portfolio to 8,300MW by 2025, including large hydro, under its Future Generation Sources strategic pillar.

“Following our successful investments in the UK’s RE businesses through Vortex Solar and Tenaga Wind Ventures, the collaboration with Sunseap is an important step to continue our ongoing international RE expansion strategy,” Baharin said.

Baharin said the collaboration with Sunseap, one of the top solar rooftop companies in South-East Asia and the largest solar company in Singapore, will be the milestone for TNB to expand better in the overseas market.

Sunseap has a net capacity of 1.2GW across 11 markets and more than 200 assets in various stages of development and has a track record of securing long-term corporate PPAs with the likes of big-name clients such as Microsoft Corp and Facebook Inc.

“This collaboration provides a solid regional platform with the capabilities, capacity and network to grow our RE and utility businesses in South-East Asia,” he added.

For the fourth quarter ended Dec 31, 2020 (4Q20), TNB’s net profit jumped 85.5% year-on-year to RM1.21 billion against RM653.3 million in 4Q19 attributed to higher tax credit resulting from the claim of the reinvestment allowance incentive.

TNB’s share price settled four sen or 0.39% higher at RM10.36 yesterday, with 6.14 million shares changing hands, valuing the company at RM59.1 billion.