TNB Renewables, a subsidiary wholly owned by Malaysia’s national electricity producer Tenaga Nasional Berhad (TNB), will buy a 39% stake in five solar roof projects of Singapore’s leading solar energy supplier, Sunseap Group, in Vietnam.
The projects in southern Vietnam, with a total peak capacity of 21.6 megawatts (MWp), were completed in December.
Sunseap is currently 90% involved in all five projects. Following the completion of the build before the first quarter of this year, Sunseap will have 51%, and Sun Times Energy JSC, an existing shareholder, will hold a 10% equity interest.
“This transaction marks the beginning of a partnership with TNB that will pave the way for a long-term business relationship between Sunseap and Malaysia’s leading utility company, and TNB’s expansion into the regional solar industry,” said Frank Phuan, CEO of Sunseap .
President and CEO of TNB Datuk Ir. Bahrain bin Din said the purchase will be a milestone for TNB to establish a local presence in Vietnam and expand into Vietnam’s fast-growing renewable and convenience energy market.
Earlier on Tuesday, Sunseap and Tenaga announced plans to form a joint venture to take part in a bid for a two-year trial with the Singapore government to import 100 MW of electricity from Malaysia.
Sunseap has a pipeline of projects in Singapore, Australia, Vietnam, China, Taiwan and Cambodia.
Last year, state-owned investment firm Temasek Holdings in Singapore and ABC World Asia, an Asian-focused investment private equity fund, invested $ 50 million Singapore ($ 36.8 million) in Sunseap. In 2019, they completed Vietnam’s $ 150 million solar farm project, one of the largest solar farms in the country.
Meanwhile, TNB has a presence in the UK, Kuwait, Turkey, Saudi Arabia, Pakistan, India and Indonesia. TNB hopes to increase its renewable energy generation capacity to 8.3 GW by 2025.
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