Tenaga unit completes acquisition of UK wind farms

KUALA LUMPUR: Tenaga Nasional Bhd's wholly owned subsidiary Vantage RE Lrd has completed its acquisition of a 100% stake in a 97.3MW onshore wind portfolio in the UK from several funds advised by Capital Dynamics, a global private asset management firm, for GBP145.9mil.

In a statement, Tenaga said 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 the acquisition, Vantage RE’s total operational RE capacity will grow by 23% from 433MW to 530MW.

According to Tenaga, 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

“This acquisition represents the continued success of our strategy execution to expand TNB’s RE portfolio in our 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," said Tenaga president CEO Datuk Baharin Din.

Baharin added that the strategic acquisition of additional operational assets that are underpinned by subsidy regimes would also allow Tenaga to fully benefit from stable revenues and build financial resilience to weather the economic challenges aggravated by Covid-19.

In addition, it will move TNB a step closer to transitioning towards a new energy future of low-carbon generation consistent with TNB’s Sustainability Pathway and overall ESG vision.