EBR Staff Writer Published 01 March 2018
Malaysian power utility Tenaga Nasional (TNB), through its wholly owned subsidiary Tenaga Wind Ventures UK, has acquired 80% stake in two UK-based renewable energy companies GVO Wind and Bluemerang Capital for approximately £171m.
The acquisition marks the Malaysian firm’s first investment in the UK onshore wind sector and its second purchase in the UK. TNB had purchased 24 solar PV farms from Vortex Solar in 2017.
The two companies have a combined portfolio of 53 operational medium wind turbines, with a total capacity of 26.1MW.
Located across the UK, the wind portfolio comprises assets which have an average age of 2.5 years and an estimated operational life of more than 25 years.
Additionally, the wind generation assets are supported by a 20-year UK government-backed feed-in tariffs (FiT) renewable support mechanism.
TNB said that the acquisition is part of its Five-Year International Expansion Roadmap, which aims to secure new overseas generation capacity.
TNB president and CEO Datuk Seri Ir. Azman Mohd said the acquisition of UK onshore wind assets is a relatively new commercial venture by TNB.
“This acquisition will strengthen TNB’s RE portfolio to its asset base and enhancing TNB’s technical and commercial insights in RE market space. TNB looks forward for future investments that will bring synergy to the Company.”
TNB said that the acquired operating wind portfolio is a low risk investment to the firm as there is no exposure to planning and construction risk.
Longspur Capital co-managers Catalin Breaban and Harry Bond said in a statement: “TNB has mandated us to assist in the management of the newly acquired wind portfolio.
“We are delighted in this strategic partnership with TNB to support their human capital development and to assist further in their efforts to grow and consolidate the generation and power infrastructure in the UK and Europe.”