TNB’s purchase of Vortex gives it access to some solar photovoltaic (PV) project companies in the United Kingdom. Source: Shutterstock

Malaysia: Tenaga Nasional acquires 50pc stake in British solar power asset

TENAGA Nasional Berhad (TNB), Malaysia’s state-owned electric utility company and the largest power company in Southeast Asia, has poured US$607.6 million into a 50 percent stake in Britain’s 364 MW solar power asset from Terraform Power Inc.

The deal was brokered through Vortex Solar UK Limited, a subsidiary of Terraform in which TNB also purchased a 50 percent stake earlier this year for more than US$111 million. TNB said in January its purchase of Vortex would give it access to some solar photovoltaic (PV) project companies in the United Kingdom.

SEE ALSO: WATCH: Tesla’s solar roof tiles affordable, under warranty forever

This latest acquisition will also help TNB achieve its ambition of a five-year international expansion plan to own up to 250 MW capacity of renewable energy projects, reports Deal Street Asia (DSA).

DSA said the deal was made possible through US$750 million worth of Islamic bonds (known as sukuk) issued by TNB in October 2016.

TNB said in a filing: “Vortex Solar UK signed a Sale and Purchase Agreement in January with a subsidiary of Terraform Power Inc. to acquire the solar portfolio, which includes 24 solar photovoltaic farms, Britain’s third largest solar power business.

SEE ALSO: Singapore’s Equis Energy makes first Australian investment in solar plants

“The assets are an excellent investment which are immediately earnings enhancing with 80 percent of revenue under long-term, 15-year power purchase agreements and subsidized by Renewable Obligation Certificates for the next 20 years.”

TNB also has acquisitions in power companies in India and Turkey, expanding its renewable energy portfolio to a combined net installed capacity of 252 MW. The power company had bought a 30 percent stake in GMR Energy in India for US$300 million as well as owning another 30 percent stake in Turkey’s Gama Enerji, which it purchased for US$243 million.