Japan’s Renova, Inc. has entered Vietnam’s onshore wind power market, its first foray into renewable projects overseas, as the developer and operator of clean energy plants aims to capture future growth in Asia.
Japan’s company will buy a 40 percent stake in each of three projects currently under development in the central province of Quang Tri in Vietnam, according to a press release issued last Friday. Each project is licensed to have a 48,000-kilowatt output capacity.
The remaining 60 percent for each project will be taken up by Power Construction Joint Stock Co. No. 1, a Vietnam-based electric power construction firm.
“Renova is working to develop renewable energy power generation projects in Asia by capitalizing on its advantages nurtured through the development of renewable energy power generation projects in Japan,” the company said in the statement.
Vietnam has seen a flurry of investments in wind power projects from those hoping to benefit from the country’s feed-in tariff (FIT) policy which is applicable to projects that become commercially operational before Nov. 1, 2021.
The projects has participated in are expected to commence operations by the end of October 2021. If completed on schedule, electric power is expected to be sold at $0.085 per kw hour under Vietnam’s FIT scheme.
Renova currently has more than 600,000 kw of solar photovoltaic and biomass power at plants in operation and under construction. It also is developing large-scale offshore wind power generation projects with a total capacity of about 700,000 kw, according to the press release.