Tenaga Nasional to invest in five Vietnam solar projects by Sunseap


"• Purchase of 39% stake will pave way for long-term relationship with Tenaga
• To be completed by March, Sunseap’s stake to be reduced to 51%; Sun Times Energy retains 10%"

Mar 4, 2021

Sunseap Group, Singapore’s leading solar energy provider, said today that TNB Renewables Sdn. Bhd., a wholly owned subsidiary of Malaysian national electricity company Tenaga Nasional Berhad (TNB), will be buying a 39% stake in its five solar rooftop projects in Vietnam.

The projects in southern Vietnam with a total capacity of 21.6 megawatts peak (MWp) were completed in December 2020 under Vietnam Electricity’s (EVN) Feed-In-Tariff 2 programme to promote investments in renewable energy sources by guaranteeing producers an above-market rate.

All five plants have a 20-year Power Purchase Agreement (PPA) with state-owned EVN to supply clean energy to Vietnam’s national grid at a feed-in-tariff of US$0.0838/kWh.

Sunseap currently holds a 90% stake in the five projects. After the acquisition is completed by the first quarter of this year, Sunseap will have its shareholding reduced to 51% while Sun Times Energy Joint Stock Company, an existing shareholder, will continue to own 10% of the equity interest.

Mr Frank Phuan, Chief Executive Officer of Sunseap, said: “This transaction marks the beginning of a partnership with TNB which will pave the way for a long-term business relationship between Sunseap and Malaysia’s leading utility company and TNB’s expansion into regional solar industry.

“Sunseap has invested heavily in Vietnam and possesses a significant presence and experience in the local market. We are confident of being able to tap more opportunities for regional collaboration around renewables.”

TNB’s President and CEO, Datuk Ir. Baharin bin Din said: “This acquisition will serve as a beachhead for TNB to establish a local presence in Vietnam and expand into the rapidly growing RE and utility market in Vietnam. This acquisition builds on our earlier Malaysia-Singapore cross-border collaboration with Sunseap and demonstrates our commitment in transforming TNB into a regional RE and utility player.”

On Tuesday, Sunseap and Tenaga announced their intention to form a joint venture to participate in a tender for a Singapore government’s two-year trial to import 100MW of electricity from Malaysia.

Sunseap is one of the largest and most established players in the solar energy industry in the region, with a pipeline of projects in Singapore, Australia, Vietnam, China, Taiwan and Cambodia.

About Sunseap Group
Sunseap Group is a leading solar energy system developer, owner and operator in Singapore, with over 400 MegaWatt-peak (MWp) of solar energy projects contracted, of which more than 168 MWp have been completed on more than 1,500 buildings in Singapore including public housing estates, as well as commercial and industrial buildings. It operates through five key units: Sunseap Leasing, Sunseap International, Sunseap Energy, Sunseap Engineering and Sunseap Solutions.

Sunseap Leasing is the first and largest solar leasing company in Singapore. Sunseap International targets markets in the Southeast Asian and Pacific regions. These include solar farm in Vietnam with more than 170 MWp, and solar projects in Cambodia, China, Taiwan, Japan, Thailand and Malaysia. Sunseap Energy provides renewable energy solutions utilising off-site arrangements by drawing on solar systems within the Group’s portfolio of distributed generation assets. Sunseap Engineering provides engineering, procurement and construction as well as operation and maintenance services for PV projects. Sunseap Solutions focuses on energy efficiency solutions by providing services such as energy audits, lighting retrofitting and green roof systems.

About TNB Renewables Sdn Bhd
TNB Renewables Sdn Bhd (TRe) – a wholly-owned subsidiary of Tenaga Nasional Berhad – was established in 2018 to grow the renewable energy business for TNB in ASEAN countries.

About Tenaga Nasional Berhad
Tenaga Nasional Berhad is a leading Malaysian utility company in Asia with an international presence in United Kingdom, Kuwait, Turkey, Saudi Arabia, Pakistan, India and Indonesia. It aspires to be a leading provider of sustainable energy solutions in Malaysia and internationally. Under the Group’s sustainability commitment, TNB targets its RE generation capacity at 8.3 GW by 2025. The group has pledged to stop investing in greenfield coal plants and aims to cap revenue from coal generation plants at 25%.

Within the renewable energy space, TNB has a total portfolio 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’s core activities are in the generation, transmission, and distribution of electricity. In addition to being the nation’s primary electricity generation enterprise, TNB also transmits and distributes all the electricity in Peninsular Malaysia, Sabah and Federal Territory of Labuan. As at 30 September 2020, TNB supplies electricity to approximately 10 million customers.

TNB, through its subsidiaries, is also involved in the manufacturing of transformers, high voltage switchgears and cables; the provider of professional consultancy services, construction and operating and maintenance of district cooling facilities, generation equipment, repair and maintenance, fuel supply services; services related to renewable energy, energy efficiency and power quality; higher education and skill training and undertakes research and development.

Media Contacts

Sunseap Group Pte Ltd
Rob Khoo
Email: corpcomms@sunseap.com

Catherine Ong Associates
Catherine Ong
Tel: +65 9697 0007
Email: cath@catherineong.com