Tenaga Nasional : TNB ENTERS VIETNAM SOLAR MARKET WITH FIRST ROOFTOP SOLAR INVESTMENT, EXTENDS PARTNERSHIP WITH SUNSEA

PRESS RELEASE

S.A. 2021/03/45 (HQ)

TNB ENTERS VIETNAM SOLAR MARKET WITH FIRST ROOFTOP SOLAR

INVESTMENT, EXTENDS PARTNERSHIP WITH SUNSEAP GROUP

Tenaga Nasional Berhad's (TNB) wholly-owned subsidiary, TNB Renewables Sdn. Bhd., will acquire a 39% stake from Sunseap Group in a 21.6MW project comprising 5 rooftop solar plants in Vietnam (the Project) from Singapore's Sunseap Group. This acquisition extends

TNB's collaboration with Sunseap, beyond the Malaysia and Singapore cross border partnership, to capture the rapid growth in the Vietnam renewable energy (RE) market.

The Project has secured the Feed-in Tariff (FiT) under the FiT2 scheme in Vietnam which is intended to promote investments in renewable energy sources through lucrative and above-market rate tariffs. Having achieved commercial operation date in December 2020, all five (5) plants are under 20-year Power Purchase Agreements (PPAs) with the state-owned utility company, Vietnam Electricity, to supply clean energy to the country's national grid. Sunseap currently holds 90% stake in the projects, which will be reduced to 51% upon completion of the 39% stake acquisition by TNB Renewables slated for the first quarter of this year. Sun Times Energy Joint Stock Company, an existing shareholder of the projects, will continue to own 10% of the equity interest.

The acquisition marks an important milestone for TNB as it expands its international RE footprint into South East Asia. Prior to this acquisition, TNB's global presence in RE consists of a total portfolio of 2,732.3MW in Malaysia (including 2,536.1MW of large hydro) and 666MW across the UK, Turkey and India comprising mainly solar, wind and hydro energy generation assets. TNB aims to grow its overall RE portfolio to 8,300MW by 2025 (including large hydro).

TNB's President and Chief Executive Officer, Datuk Ir. Baharin Din described the acquisition as another step forward towards achieving TNB's ambition to grow its RE and utility businesses in South East Asia.

"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 in transforming TNB into a regional RE and utility player."

Sunseap is one of the top solar rooftop companies in South East Asia and the largest solar company in Singapore with fully integrated solar business including presence in the energy retail segment. It has a net capacity of 1.2GW across 11 markets and more than 200 assets in various stages of development. The latest 21.6MW rooftop solar project adds to Sunseap's 168MW utility-scale solar farm it had built in Vietnam in 2019, and it is currently developing over 650MW of additional projects in Vietnam.

About Tenaga Nasional Berhad

Tenaga Nasional Berhad is a leading Malaysian utility company in Asia with an international presence in United Kingdom, Kuwait, Turkey, Saudi Arabia, Pakistan, India and Indonesia. It aspires to be a leading provider of sustainable energy solutions in Malaysia and internationally. Under the Group's sustainability commitment, TNB targets its RE generation capacity at 8.3 GW by 2025. The group has pledged to stop investing in greenfield coal plants and aims to cap revenue from coal generation plants at 25%.

Within the renewable energy space, TNB has a total portfolio of 2,732.3MW in Malaysia (including 2,536.1MW of large hydro) and 666MW across the UK, Turkey and India comprising mainly solar, wind and hydro energy generation assets.

TNB's core activities are in the generation, transmission, and distribution of electricity. In addition to being the nation's primary electricity generation enterprise, TNB also transmits and distributes all the electricity in

Peninsular Malaysia, Sabah and Federal Territory of Labuan. As at 30 September 2020, TNB supplies electricity to approximately 10 million customers.

TNB, through its subsidiaries, is also involved in the manufacturing of transformers, high voltage switchgears and cables; the provider of professional consultancy services, construction and operating and maintenance of district cooling facilities, generation equipment, repair and maintenance, fuel supply services; services related to renewable energy, energy efficiency and power quality; higher education and skill training and undertakes research and development.

About Sunseap Group

Sunseap is one of the largest and most established players in the solar energy industry in the region, with a pipeline of projects in Singapore, Australia, Vietnam, China, Taiwan and Cambodia. In Malaysia, it has previously signed a joint venture with Cenergi SEA Sdn Bhd to provide residential customers with solar energy through rooftop solar leasing agreements.

Sunseap Group is the leading solar energy system developer, owner and operator in Singapore, with more than 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. It operates through five key units: Sunseap Leasing, Sunseap International, Sunseap Energy, Sunseap Engineering and Sunseap Solutions.

Sunseap Leasing is the first and largest solar leasing company in Singapore. Sunseap International targets markets in the Southeast Asian and Pacific regions. These include a 168 MWp solar farm in Vietnam, a 140 MWp solar farm in India, and a 10 MWp solar farm in Cambodia. Sunseap Energy provides renewable energy solutions utilising off-site arrangements by drawing on solar systems within the Group's portfolio of distributed generation assets. A notable client of Sunseap Energy is Apple, which signed an agreement with Sunseap to procure 100% of its local energy requirements from renewable sources. Sunseap Energy is also contributing towards Microsoft efforts in decarbonizing via renewable energy. Sunseap Engineering provides engineering, procurement and construction as well as operation and maintenance services for PV projects. Sunseap Solutions focuses on energy efficiency solutions by providing services such as energy audits, lighting retrofitting and green roof systems.

Released in Kuala Lumpur on 4 March 2021 at 1:00 pm

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TNB President and Chief Executive Officer Datuk Ir. Baharin Din