Sunseap to form JV with Tenaga Nasional Bhd (TNB) for importing clean energy
Published 3 March 2021
Singapore-based solar firm Sunseap Group will form a joint venture with Malaysia’s largest electricity utility, Tenaga Nasional Bhd (TNB). This joint venture trial is to import clean electricity into Singapore, from Malaysia.
According to the terms of the agreement, the partnership will import 100 MW of electricity to be generated from renewable energy sources, TNB and Sunseap said in a joint statement. Sunseap is backed by institutional investors, such as Goldman Sachs, Temasek and DBS Group Holdings.
Sunseap Group is the leading solar energy system developer, owner and operator in Singapore, with almost 300 MegaWatt-peak (MWp) of solar energy projects contracted, of which 168 MWp have been completed on more than 1,500 buildings in Singapore including public housing estates, as well as commercial and industrial buildings.
Financial details of the transaction were not disclosed.
However, the companies said that this venture will contribute to Singapore’s long-term efforts to power its future “through clean and green energy sources”, said Frank Phuan, co-founder and chief executive of Sunseap.
Las year Singapore had made public its plans to trial clean energy imports from Malaysia over two years to assess and refine the technical and regulatory frameworks for power imports into the city-state and boost the security of its energy supply as part of a series of moves aimed at reducing its carbon footprint.
The electricity to be imported by the partners could account for about 1.5 per cent of Singapore’s peak electricity demand, and could begin as early as end-2021 via the existing electricity interconnector between Singapore and Malaysia, the joint statement said.
The venture will invest in multiple solar farms across Malaysia and tap other forms of clean energy, such as hydroelectricity, from TNB’s existing plants to ensure a reliable and stable supply of power into Singapore, the statement said.
Frank Phuan, co-founder and CEO of Sunseap, said: “We are pleased to partner Tenaga Nasional, a well-established power grid operator and Malaysia’s leading utility company, to contribute to Singapore’s long-term efforts to power our future through clean and green energy sources.”
This development comes close on the heels of Sunseap signing 20-year power purchase agreements with state-owned utility Vietnam Electricity to supply clean energy to the country’s national grid.
The plants will generate the solar energy from seven newly commissioned solar plants in Vietnam with a total capacity of 23.2MWp.