KUALA  LUMPUR: Affin Hwang Capital has walked away from a recent virtual meeting with Tenaga Nasional Bhd (TNB) feeling reassured about its business prospects under the New Energy Transition Roadmap (NETR).

Affin Hwang said the TNB management had expressed eagerness to invest more aggressively in the domestic grid and renewable energy (RE) assets.

The NETR provides TNB an opportunity to invest heavily in domestic RE/green projects vis-a-vis overseas projects, the firm said today.

TNB has been named as the champions for three flagship catalyst projects under NETR Part 1, namely the solar park, hybrid hydro-floating solar PV and co-firing hydrogen and ammonia projects.

In addition to the upgrading of power infrastructure and the three flagship

catalyst projects where it is named as the champions, Affin Hwang said TNB is also keen to expand residential solar and electric vehicle charging stations.

The group is also interested in participating in Khazanah Nasional Bhd-led integrated RE zone project.

TNB is in various stages of discussions and getting commitments from potential partners to develop five 100 megawatts of solar parks. 

The solar parks will be located close to existing industrial parks.

"Land availability and location are important considerations and TNB is 

actively engaging with landowners and state governments to be the partners for these projects."

Affin Hwang said the solar parks will be focusing on solar generation but TNB intends to incorporate a modular design to enable the solar parks to be battery ready (incorporating battery storage at current prices may double the project costs). 

Affin Hwang maintained its "Buy" call on TNB with an RM11.00 target price.

The firm likes the stock for its positive earnings trajectory, net zero/RE aspiration, expected ESG rating improvement and the government's push on the NETR.

https://www.nst.com.my/business/2023/08/944358/tnb-invest-more-aggressively-national-grid-re