KUALA LUMPUR: Tenaga Nasional Bhd (TNB) has partnered with BELECTRIC GmbH (BELECTRIC) to venture into solar greenfield development in the United Kingdom (UK).
TNB subsidiary Vantage RE Ltd (Vantage RE) has signed an engineering, procurement and construction (EPC) contract with BELECTRIC for the construction and commissioning of 102 megawatts (MW) of solar farms in the UK.
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.
This investment represents a significant milestone for TNB as it broadens into renewable energy (RE) greenfield development in the UK.
TNB president and chief executive officer Datuk Indera Ir Baharin Din said the company's experience and expertise in developing solar farms in Malaysia via large-scale solar (LSS) projects would be crucial in ensuring this project's success.
Baharin said this is an important step towards future-proofing TNB's business as it transitions to a green economy and ensures that shareholder value remains well-protected.
"The move upstream into greenfield development is in line with TNB's aspiration in becoming a global sustainable energy provider," he said.
According to TNB, the solar farms are expected to achieve a commercial operation date (COD) by the first quarter (Q1) of 2024.
To be built on two sites, the farm will provide stable long-term revenues under a 15-year contract-for-difference (CfD) subsidy scheme awarded in July 2022.
"The Vantage RE team will oversee the project delivery. Once operational, it will generate enough clean energy to meet the equivalent annual needs of over 37,000 homes and save around 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 added.