Gunkul Engineering acquires 50MW solar energy plant in Thua Thien-Hue for US$39.9 million
Pushed by its rising energy demand, Vietnam has turn into one of many largest and fastest-growing renewable power markets in Southeast Asia, and Thai firms are performing swiftly to benefit from the huge alternatives within the nation.
Thai power agency Gunkul Engineering, for instance, has acquired the 50-megawatt Phong Dien II solar energy plant within the central Vietnamese province of Thua Thien-Hue for US$39.9 million.
The ability began business operation on December 15 with a feed-in tariff (FIT) of seven.09 US cents per kilowatt-hour for 20 years.
The deal, accomplished in late November, contains the acquisition of a 49% stake from Bangjak Inexperienced Vitality, a subsidiary of Bangkok-based BS Business Service, and 51% from two Vietnamese shareholders.
Tran Thi Huong Hoa, who held a 46% stake, and Phan Thi Bich Nga, with 5%, reportedly obtained greater than US$20 million for his or her shares, though precise good points weren’t disclosed.
The acquisition is a part of Gunkul Engineering’s plans to increase in Southeast Asia within the renewable power sector, which it sees has low danger and excessive development potential.
Gunkul can be shopping for the Tan Chau photo voltaic plant in southern Vietnam’s Tay Ninh province bordering Cambodia for a reported US$47 million, its fourth such acquisition in a row this 12 months. The plant started operations in October with the identical FIT of seven.09 US cents per kWh for 20 years.
Extra photo voltaic initiatives
Earlier, in February, the Thai agency additionally acquired two solar energy vegetation with a mixed technology capability of 60MW for US$60.6 million within the province, which additionally borders Ho Chi Minh Metropolis, Vietnam’s financial powerhouse.
Tri Viet 1 and Bach Khoa A Chau 1, every with a capability of 30MW, began business operations in Could 2019. The nation’s state utility EVN (Electrical energy Vietnam) buys their energy at an FIT of 9.35 US cents per kWh for 20 years.
In the meantime, Gulf Vitality Improvement has elevated its possession in two photo voltaic farms, TTC 1 and a couple of, in the identical province to 90%, from 49% in 2019. The offers had been made with its Vietnamese companion Thanh Thanh Cong Group (TTC).
In July, Gulf Vitality reported to the Inventory Alternate of Thailand, the place it’s listed, that it had totally bought two wind energy farms for about US$200 million to benefit from low rates of interest because it seeks initiatives providing fast return on funding. The initiatives, with a capability of 50MW every, are situated in Gia Lai province within the Central Highlands.
The 2 initiatives, anticipated to be switched on in 2021, will promote energy to EVN for 20 years, with no FITs disclosed.
In Binh Phuoc province, near Tay Ninh, Bangkok-based Tremendous Vitality Company is investing as much as US$477 million in 4 solar energy vegetation, Loc Ninh 1-4, with a mixed capability of 750MW. The services had been scheduled to start out operations this December.
Different Thai firms investing in Vietnam’s photo voltaic sector embody B.Grimm Energy, BC Container Glass, and Begistics.
Vietnam, already dedicated to sustainable power development amid quickly rising demand for electrical energy, is stepping up its solar energy improvement, with a deal with sunny central and southern areas.
The central province of Ninh Thuan, the nation’s warmest space, is dwelling to a lot of solar energy initiatives. The most important photo voltaic farm of its variety in Southeast Asia was inaugurated within the province in October. Vietnam’s Trung Nam Group invested US$518 million within the 450MW plant, which was launched with a 500-kilovolt transformer station and a 17-kilometre-long 220/500kV transmission line.
Additionally within the province, Sharp Vitality Options Company (SESJ), a part of Japan’s Sharp Corp, switched on a solar energy plant in July. It’s designed to generate 76,373 megawatt hours per 12 months. It is only one of SESJ’s 5 solar energy vegetation within the nation with a mixed capability of about 340MW.
Vietnam’s power demand is anticipated to rise 8% yearly within the subsequent decade, with the solar energy sector attracting a lot funding.
The federal government finalized the nation’s new photo voltaic FITs in April, ten months after the earlier FIT programme expired. The brand new tariffs are 10-24% decrease than earlier than and are nonetheless uniform throughout areas however differentiated by kind (ground-mounted, floating, and rooftop). Beneath the brand new pointers, photo voltaic initiatives are required to realize business operation by December 31, 2020 to profit from the brand new FIT charges.