solar power
Image credit: Sunseap

Singapore-based solar energy provider, Sunseap Group, has announced that Malaysia’s Tenaga Nasional Berhad (TNB) Renewables will be buying a 39% stake in its five solar rooftop projects in Vietnam.

The projects in southern Vietnam with a total capacity of 21.6MW peak were completed in December 2020 under Vietnam Electricity’s (EVN) Feed-In-Tariff 2 programme, designed to promote investments in renewable energy sources by guaranteeing producers an above-market rate.

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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, CEO 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.”

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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 to transforming TNB into a regional RE and utility player.”

Sunseap and Tenaga have also 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.