Norwegian renewable energy solutions provider sells wind plant in Vietnam
The Norwegian renewable energy provider, Scatec ASA, is exiting the Vietnam renewable energy market seeking more growth options elsewhere.
It has signed an agreement to sell the 39-megawatt (MW) Dam Nai Wind farm and the associated operating company in Vietnam to Sustainable Asia Renewable Assets (SARA), a utility-scale renewable energy platform of the SUSI Asia Energy Transition Fund (SAETF), the company said in a recent statement.
Scatec will receive an upfront payment of US$27 million for its 100% equity stake at completion, with potential for additional earn-out payments of up to US$13 million, that are subject to certain conditions being fulfilled prior to May 2026.
“We have decided to exit Vietnam after operating the Dam Nai wind farm since the acquisition of SN Power in 2021. We are satisfied with the agreed price and the sale is in line with our strategy to optimise our portfolio and focus on markets where we see further attractive growth opportunities,” says Scatec CEO Terje Pilskog.
Total net interest bearing debt related to the Dam Nai Wind farm was approximately US$28 million at the end of the second quarter 2024. The wind farm has additionally generated a cash flow to equity of approximately US$14 million to Scatec since the acquisition in 2021.
The transaction is expected to close within the first half of 2025, subject to regulatory approvals.
Following the transaction Scatec will exit all operations in Vietnam with costs, including capitalised development expenses, of approximately US$4.5 million, which will be recognised in the third quarter 2024 results.
Dam Nai Wind is located in the Ninh Thuan province in the southern part of the country and consists of 15 Siemens wind turbine generators.
Dam Nai Wind Joint Stock Company became a wholly owned subsidiary of Scatec when Scatec Solar Netherlands B.V. acquired SN Power Vietnam Renewables B.V in May 2021.
