KUALA LUMPUR, Malaysia (July 2): Tenaga Nasional Bhd (TNB) announced that its newly formed renewable energy (RE) investment and asset management firm Vantage RE Ltd will acquire, operate, and manage a portfolio of RE assets in the UK and Europe as part of the Malaysian government-controlled utility’s global ESG initiatives. TNB said in a statement yesterday that Vantage, which is based in London, will be directed by Vian Davys, who has more than 20 years of expertise in the RE industry in the UK and around the world.
“Vantage is set to position itself quickly for expansion in the market, keeping with TNB’s status as an experienced and trustworthy participant in the UK’s energy industry, with an experienced team comprising local hires in the UK working alongside TNB’s Malaysian expertise.”
Vantage’s immediate growth strategy will be to acquire subsidised renewable obligation certificates (ROCs) and feed-in-tariff (FiT) assets in the United Kingdom and Ireland “Vantage completed the purchase of an additional onshore wind turbine with revenue contracted under the FiT scheme in May of this year, bringing the company’s total wind capacity to 26.6MW. Vantage has created a sizable acquisition pipeline of operating assets, including those to be purchased via competitive bidding, in addition to its existing assets “TNB said.
According to the UK’s independent energy regulator Ofgem, ROCs are certifications granted to operators of approved renewable generating stations for the qualified renewable electricity they create.
TNB’s RE footprint in the UK began in 2017, when it invested in Vortex Solar UK Ltd for a 50% equity position in one of the largest solar platforms in the UK using the ROC subsidy system, according to the company’s statement.
TNB’s RE business portfolio in the UK was increased in 2018 with the acquisitions of GVO Wind Ltd and Bluemerang Capital Ltd, according to the company.
“These assets are now managed by Tenaga Wind Ventures UK Ltd (TWV), a wholly-owned subsidiary of TNB, and they have the UK’s largest FiT wind portfolio.”
TNB bought the remaining 20% investment in TWV’s wind assets, as well as an additional 5% of Vortex’s controlling stakes, in 2020, becoming the only and largest stakeholder of the respective companies. This was a move that went beyond holding equity, allowing TNB to have more management and operational control over these RE enterprises, as well as enhancing TNB’s ESG journey “TNB said.
According to TNB, despite the global impact of the Covid-19 epidemic, UK RE assets have remained resilient throughout the year, generating excellent operating margins through active asset management measures.
With favorable government legislation, expanding worldwide ESG demand, and rapid preference for RE as the “mainstream” energy source, TNB believes Vantage will grow and realize its full potential as a global RE player.
In a statement, TNB president and chief executive officer (CEO) Datuk Baharin Din noted that the foreign RE business is a priority for the company’s long-term success.
TNB will continue to spend heavily in this sector, he noted.
“We anticipate that these operations will make a significant contribution to global low-carbon generation while also accelerating TNB’s commitment to its ESG goals. We recognize the benefits of ESG to investors as it relates to their values and priorities when making investment decisions.
“We will not be environmentally conscious for the sake of being environmentally conscious, as we recognize that a fundamental transformation is required to broaden and deepen the global sustainability route. We are on track to meet TNB’s total target of 8,300MW of RE capacity with the establishment of Vantage. As a result, we will continue to build the RE portfolio in our focus markets, leveraging existing assets, knowledge, and capabilities, in line with TNB’s global ESG mission “Added he.
TNB’s share price had declined two sen, or 0.21 percent, to RM9.73 at 3.01pm on Bursa Malaysia, with a market value of roughly RM55.75 billion.
TNB has 5.73 billion shares in circulation.
The company said in a separate statement yesterday that its foreign shareholding had dropped to 12.21% as of May 31, 2021, down from 12.31% a month earlier (April 30, 2021).
TNB’s foreign shareholding was 15.56 percent as of June 30, 2020, according to the most recent foreign shareholding chart./n
