Tenaga Nasional to Invest in Five Vietnam Solar Projects by Sunseap

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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.

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