KUALA LUMPUR: Tenaga Nasional Bhd
's wholly owned subsidiary vantage RE Ltd has signed an engineering, procurement and construction (EPC) contract with Belectric GmbH for the construction and commissioning of 102MW solar farms in the UK.
In a statement, it said 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.
The solar arms, which are expected to achieve commercial operations date by Q1 2024, are to be built on two sites and proide stable long-term revenue under a 15-year contract-for-difference subsidy scheme.
According to to TNB, 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, it said.
“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.
"The move upstream into greenfield development is in line with TNB’s aspiration in becoming a global sustainable energy provider," said TNB president and CEO Datuk Indera Baharin Din.
He added that the investment has grown TNB's RE capacity in the UK to 632MW, a significant 61% growth in MW capacity since the launch of Vantage RE in July 2021.
As at Q3 2022, the Ebitda contribution from TNB's UK RE portfolio had increased 31.7% y-o-y to GBP55.6mil, signifying continued healthy financial performance through TNB's active asset management approach.
