Thailand’s Banpu and its power business arm Banpu Power (BPP) have joined forces to acquire El Wind Mui Dinh, an onshore wind farm in the south-central province of Ninh Thuan, in a deal worth US$66 million.
Local media on August 5 quoted Banpu CEO Somruedee Chaimongkol as saying that the transaction will be completed in the fourth quarter.
The investment was made through BRE Singapore, a subsidiary of Banpu Next, in which Banpu and BPP each hold 50%.
El Wind Mui Dinh comprises 16 wind turbines, each of which produces 2.35MW of electricity from wind at an average speed of 6.6 metres per second.
Chaimongkol said Ninh Thuan is a hub in Vietnam for renewable energy resources, generating 80% of the country’s renewable power.
El Wind Mui Dinh has been operating since April last year and is entitled to a feed-in tariff of 8.5 US cents per kWh for up to 20 years.
She explained that wind power supply in Vietnam is regulated under power purchase agreements with the State-run Electricity of Vietnam (EVN).
This latest asset acquisition is aimed at achieving Banpu’s goal of having a total renewable energy capacity of 814MW.
She said Vietnam has significant potential in renewable energy because its government is seeking new investment to reach the targeted 7,000MW from wind power by 2025.