MBSB Investment Bank noted that Tenaga Nasional Bhd ‘s Vantage RE provides strategic exposure to a mature market while Malaysia’s regulated grid investment and renewable energy opportunities support longer-term growth.
MBSB said Vantage RE, the group’s wholly owned UK renewable energy arm, has 908.5MW of operating capacity across the UK and Ireland, comprising 743MW of solar, 124MW of onshore wind and 41.5MW of offshore wind. The portfolio forms part of a wider 1.3GW platform.
The research house said around 60% of Vantage RE’s revenue is backed by long-term arrangements including renewable obligation certificates, feed-in tariffs, contracts for difference and corporate power purchase agreements. More than half of its revenue is also expected to be inflation-linked in 2026, supporting cash flow stability.
Vantage RE has a 360MW development pipeline comprising 245MW of co-located battery energy storage systems and 114.6MW of onshore wind projects. MBSB Research views these projects as longer-term growth optionality, with the BESS programme expected around 2031 and wind projects from 2029, subject to approvals.
The research house also highlighted the 102MW Kampana solar portfolio as TNB’s first large-scale UK renewable project developed and constructed internally. It includes a proposed 65MW/130MWh battery storage system and benefits from a contract for difference-backed revenue model.
In Malaysia, MBSB Research expects electricity demand to grow 5.4% in CY26, with the RP4 tariff framework providing greater stability through the Automatic Fuel Adjustment mechanism.
The stock price is flat at RM14.48 as of the time writing.
