State owned electricity utility of Malaysia Tenaga Nasional Berhad (TNB) is set to enter the Singaporean renewable energy market through its wholly-owned subsidiary TNB Renewables Sdn. Bhd. For this it has entered into a collaboration agreement with Singapore based solar power company Sunseap Group.
Both the partners will focus on capturing the renewable energy and 'rapidly growing' corporate power purchase agreement (PPA) market in the country.
TNB President and CEO Datuk Baharin Din said the partnership will aim to tap strategic clients as RE100 signatories, multinational corporations, among others as more businesses look to expand and fulfil their commitments to lower carbon emissions.
TNB said this partnership with Sunseap to expand in Singapore will be aligned with its aim to grow the group's overall renewable energy portfolio to 8.3 GW by 2025, including large hydro, growing from 2.732 GW in Malaysia including 2.536 MW large hydro and 666 MW across the UK, Turkey and India, at present. Apart from large hydro, this renewables portfolio comprises mainly solar and wind assets.
For TNB, this move follows its September 2020 investment in Vortex Solar in the UK to acquire a controlling stake in 365 MW PV capacity through TNB International Sdn Bhd (see Malaysian Utility Invests In UK Solar PV Platform).
"Following our successful investments in the UK RE businesses through Vortex Solar and Tenaga Wind Ventures, the collaboration with Sunseap is an important step to continue our ongoing international S.A. 2021/02/44 (HQ) Page 2 of 3 RE expansion strategy," said Baharin Din. "This collaboration provides a solid regional platform with the capabilities, capacity and network to grow our RE and utility businesses in South East Asia."
Timing of the TNB and Sunseap partnership is of significance here as it comes 'in anticipation of the tender launch by Singapore's Energy Market Authority for a trial of the Malaysia-Singapore cross-border energy supply, expected to launch by March 2021'. It refers to Singapore's plans to import 100 MW renewable energy from Malaysia under an electricity import trial project, reported by local media in 2020.
Adding details of the venture, Reuters reported the joint venture will import 100 MW of electricity to be generated from renewable energy sources. If successful, it added, the partnership will invest in multiple solar farms across Malaysia and tap other forms of clean energy as well, including hydropower from TNB's existing plants to ensure reliable and stable power supply into Singapore.
Recently, the Sultan of Johor state of Malaysia announced the largest solar PV project of the country with 450 MW capacity to come up at Pengerang (see Malaysia's Largest Solar Project Planned For Johor State).
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