Tenaga Nasional Berhad’s foray into the renewable energy business in Europe through its wholly-owned subsidiary in the UK, Vantage RE Ltd will provide Malaysia with invaluable insights to accelerate the country’s responsible Energy Transition (ET), said the Minister of Natural Resources, Environment and Climate Change (NRECC), Nik Nazmi Nik Ahmad.
Nik Nazmi who was in London recently for a working visit to Vantage RE, commended TNB for its remarkable achievement in leading Malaysia’s ET, reducing its carbon footprint, and embracing renewable energy both in Malaysia and overseas. For TNB’s UK RE business, he said the knowledge and expertise to be tapped are invaluable for TNB and Malaysia.
TNB London Vantage RE office was established in 2021 to own, operate, develop, and manage a portfolio of RE assets in the UK and Europe as part of TNB’s global environmental, social, and governance (ESG) efforts. It presently has more than 630 Megawatt (MW) of renewable energy assets consisting of solar, onshore, and offshore wind projects across the UK.
The Vantage RE’s offshore wind farm operated in partnership with EDF Renewables UK & Ireland, feature an impressive example of a high-performing clean energy generation asset.
Under the UK’s energy transition journey, in 2022 about 31% of the UK’s electricity was generated from wind (26.8%) and solar (4.4%). There are plans to significantly increase both wind and solar capacity over the next few years. These would be positive developments for Vantage as they align with its core business growth ambitions.
The UK government also launched the Review of Electricity Market Arrangements (REMA) in 2022 to enhance energy security and reduce electricity costs for consumers. This will give a major impact on electricity prices which would peg it to more stable and cheaper electricity generated from renewables, given the volatility of energy prices such as gas. UK remains the key focus market for TNB while pursuing its expansion in the European RE market.
Nik Nazmi added that the government is now exploring energy import and export markets and aspires for Malaysia to play a pivotal role in the ASEAN Power Grid. “I am confident that the UK’s insights will provide crucial guidance for Malaysia as we pursue this vision.”
Concurring, Dato’ Indera Ir. Baharin said Vantage RE is a vital component of TNB’s Responsible Energy Transition journey, and the considerable experience gained in the UK, has placed TNB in a unique position to tap into more opportunities.
“The international RE business is one of the priority areas for TNB to thrive in the long term. In keeping with our aspiration as the leading provider of sustainable energy in Malaysia and internationally, we will continue to invest substantially in this area. Our overseas venture will expedite RE growth and build TNB capabilities in foreign markets, enabling us to better understand how Malaysia can establish the right frameworks that incentivise the adoption of key technologies such as Battery Energy Storage System (BESS), hydrogen as well as Carbon Capture, Usage and Storage (CCUS) that will support the Energy Transition.
“We are committed towards TNB’s Energy Transition agenda to reduce 35% of our emissions intensity as well as 50% of our coal generation capacity by 2035,” he added.
Meanwhile, Vantage RE CEO, Vian Davys said, “At Vantage, we’re committed to increasing our renewable capacity to satisfy the growing demand for clean energy and more broadly, developing TNB’s capability to meet the challenges of the future. In addition to our current 530 MW portfolio, and 102 MW in construction, we plan to explore new markets and technologies that offer attractive growth opportunities, and to strategically expand our footprint in these areas.”
