Energy Central News

Curated power industry news from thousands of top sources.

News

Banpu acquires new operating wind farm in Vietnam as part of plans for greener future

Source: 
Vietnam Investment Review (VIR)

Thailand-based Banpu Pcl. is acquiring an operating Mui Dinh Wind Farm, marking another key milestone in its long-term investment in Vietnam.

 

Thailand-based Banpu Pcl. is acquiring Mui Dinh Wind Farm

The purchase consideration payable is approximately $66 million, subject to certain adjustments outlined in the sale and purchase agreement (SPA).

The transaction remains subject to customary approvals and conditions precedents in accordance with the SPA with completion expected to take place in the fourth quarter of 2020. The investment is made through BRE Singapore Pte., Ltd. (BRES), an associate company, in which the company holds 50 per cent share through Banpu NEXT Co., Ltd. (BanpuNEXT).

The cash flow from operation of the Mui Dinh Wind Farm since January 1, 2020 belongs to BRES. For this project, Banpu secured a Feed-in-Tariff (FiT) of 8.5 US cents per kWh for a period of 20 years of the Power Purchase Agreement (PPA) with Vietnam Electricity (EVN).

The Mui Dinh Wind Farm achieved its Commercial Operation Date (COD) on 23 April 2019 with a capacity of 37.6MW. Its 16 wind turbines, each with a capacity of 2.35MW, are designed and maintained by Enercon Partner Konzept (EPK), a leading wind power company and turbine manufacturer. Banpu has a 20-year full-comprehensive agreement with EPK. This ensures the operational reliability of the project in the long run.

 

The investment in the wind asset in Vietnam is a testament to Banpu’s continuous commitment to its Greener & Smarter strategy

The Mui Dinh Wind Farm is strategically located in Ninh Thuan province, in the South Central Coast region of Vietnam. Its geographical location ensures high wind speed together with the Vietnamese government’s supportive policy for developers and investors to explore opportunities in the area. This results in the province becoming Vietnam’s hotspot for renewable projects with over 80 per cent of the country’s renewable power capacity being generated from Ninh Thuan.

Somruedee Chaimongkol, chief executive officer of Banpu Pcl. said, “The investment in the wind asset in Vietnam is a testament to Banpu’s continuous commitment to our Greener & Smarter strategy. The Mui Dinh Wind Farm is the latest addition that helps expand the company’s portfolio of renewable energy and generate more revenue and cashflows from the business for Banpu."

Vietnam is one of the fastest-growing economies in the world and one of the very few that reported GDP growth given the current global situation. Its increasing need for energy translates to even more potential opportunities for Banpu in the future. Recently, the Vietnamese goverment approved 7GW of new wind projects to be built. By 2025, the country is looking at a total wind power generation capacity of nearly 12GW.

“As one of the international developers to have entered the Vietnamese market, especially Ninh Thuan, the strategic province for renewable projects, Banpu is paving the way for long-term investment with an operating asset to help strengthen our existing portfolio of projects under development. We are committed to building sustainable business growth that keeps pace with the global and local energy trend – decarbonisation," CEO Somruedee added.

"With our total committed capacity of renewable energy, we are looking at emissions reduction of nearly 700,000 tonnes per year or the equivalent of over 40 million trees planted. For Banpu’s upcoming investments, we are focusing on a business that provides a stable and continuous cashflow, upside potential, and long-term value growth for our stakeholders," he shared.

The Banpu group aims to achieve the power generation capacity of 6,100MW within 2025 by focusing on markets with a growing demand for power consumption, with BanpuNEXT spearheading the development of renewable energy and energy technology. Inclusive of the Mui Dinh Wind Farm, the company’s total committed capacity of renewable business will be reaching 814MW.

Discussions

No discussions yet. Start a discussion below.

Get Published - Build a Following

The Energy Central Power Industry Network is based on one core idea - power industry professionals helping each other and advancing the industry by sharing and learning from each other.

If you have an experience or insight to share or have learned something from a conference or seminar, your peers and colleagues on Energy Central want to hear about it. It's also easy to share a link to an article you've liked or an industry resource that you think would be helpful.

                 Learn more about posting on Energy Central »