Tenaga Nasional Berhad: TNB ACQUIRES A 97.3MW ONSHORE WIND PORTFOLIO IN THE UK AND REITERATES ITS COMMITMENT TO RENEWABLE ENERGY GROWTH.
SA 2022/04/04_27 (headquarters)
TNB ACQUIRES A 97.3 MW ONSHORE WIND PORTFOLIO IN THE UK AND REITERATES ITS COMMITMENT
TO THE GROWTH AND SUSTAINABILITY OF RENEWABLE ENERGY
Tenaga Nasional Berhad (TNB) is fully(Vantage RE) has completed the acquisition of a 100% interest in a 97.3 MW onshore wind portfolio in the United States
United Kingdom (UK) from a number of funds advised by Capital Dynamics, an independent global private asset management firm and one of the world’s leading clean energy investorsfor a
total consideration of GBP 145.9 million.
The acquisition, which follows TNB’s first foray into the UK offshore wind market last year
October marks another significant milestone in TNB’s strategy to increase its global RE portfolio while strengthening its presence in a target market.
The wind portfolio comprises operational onshore wind farms at 11 sites in the UK which have been developed under the feed-in tariff or revolving bond certificate subsidy schemes, which are expected to provide long-term stable revenues. At the end of this acquisition, Vantage RE RE’s total operational capacity will increase by 23%, from 433 MW to 530 MW. This additional onshore wind capacity will diversify Vantage RE existing renewable technology mix and improve sound balance portfolio electricity generation profile throughout the year.
“This acquisition represents continued successful execution of our expansion strategy TNB
Renewables portfolio in our target markets such as UK and Europe while accelerating TNBit’s travel in achieving its global vision of the environment, social and governance (ESG)”, declared the
President and Chief Executive Officer (CEO), Datuk Ir. Baharin Din. “We firmly believe in a innate responsibility for a better world and brighter lives rooted in the aspiration of TNB
to net zero emissions by 2050. TNB’s The path to sustainability is underpinned by our commitment to reduce our emissions intensity by 35% and our coal production by 50% capacity by 2035.”
Baharin said this strategic acquisition of additional operational assets supported by grant schemes would also enable TNB to fully benefit from stable revenues and strengthen its financial resilience to face the economic challenges aggravated by Covid-19. Moreover, he bring TNB closer to transitioning to a new energy future of low-carbon generation compatible with TNB Sustainable development journey and global ESG vision.
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Emphasizing the importance of internal capacity development for the success of securing renewable energy growthh and value creation, he said: “The continued development of our internal onshore wind capabilities is critical as we pursue onshore wind opportunities globally and create value through operational excellence. By acquiring this portfolio, we are building a platform to expand our technological know-how in onshore wind and deliver new capabilities development within the group.
Vian Davys, CEO of Vantage RE, said: “We are delighted to announce our further acquisition of this onshore wind portfolio, which significantly enables us to move into managing and operating larger wind turbines in the UK. We reviewed asset depth and availability as well as potential value creation to ensure that each strategic investment provides income certainty and a positive financial contribution. This is a crucial step for Vantage RE and TNB in building internal onshore wind capacity.“
Dario Bertagna, Managing Director and Co-Head of Capital Dynamics Clean Energy, said: “This was a privilege to work with TNB on this transaction; we fully support their growth ambitions in renewable energies. As one of the world’s leading investors in renewable energy, we look forward to the opportunity to collaborate with TNB on other projects in the future.“
Released in Kuala Lumpur on April 4, 2022
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About Tenaga National Berhad
Tenaga National Berhad (TNB) (www.tnb.com.my) is a leading Malaysian utility company in Asia with an international presence in the UK, Kuwait, Turkey, Saudi Arabia, Pakistan and India. In renewable energy, as of December 2021, TNB had a total portfolio of 2,771.4 MW in Malaysia (including 2,536.1 MW of large hydro) and 714.4 MW in the UK, in Turkey and India, primarily comprising solar, wind and hydro power generation assets.
About Capital Dynamics Limited
Capital Dynamics is an independent global asset management firm focused on private assets, including private equity (primary, secondary co-investments), private credit and clean energy. Founded in 1988, the firm has extensive knowledge and experience in developing solutions tailored to the specific needs of a diverse and global clientele of institutional and private investors. As of Q4 2021, Capital Dynamics oversees over $13 billion in assets under management and advisory 1 , and employs approximately 160 professionals worldwide in 14 offices in Europe, the Middle East, North America and Asia. Capital Dynamics is a recognized leader in the responsible investment industry, receiving top marks from the UNPRI for its corporate strategy and governance and investment strategies. For more information, please visit:www.capdyn.com
1 As of December 31, 2021. Assets under management are calculated based on total commitments at the final closing date for all funds currently managed by Capital Dynamics, including amounts that have been distributed. Assets under advisory include assets for which Capital Dynamics provides services such as reporting, monitoring and risk management.