Thailand’s Banpu buys Vietnam wind farm, expanding renewable business
Thailand ’s major energy producer, Banpu Public Co. will spend about $66 million to buy an operating wind farm in Vietnam.
The acquisition of the El Wind Mui Dinh Wind Farm will help strengthen Banpu’s long-term presence in Vietnam where the integrated energy solutions company has started developing the Soc Trang wind project, it said in a media statement.
The investment is made through BRE Singapore Pte. Ltd (BRES), an associate company, in which Banpu holds a 50 percent stake through its subsidiary, Banpu NEXT Co. Banpu has secured a power purchase agreement for 20 years with Vietnam Electricity (EVN) for the onshore wind farm, according to the statement.
Overall, the Thailand group aims to achieve power generation capacity of 6.1 million kilowatts by 2025. It will focus on markets such as Vietnam which have a strong growing demand for power consumption, with Banpu NEXT spearheading the development of renewable energy and energy technology.
Banpu from Thailand also noted that Vietnam is one of the world’s fastest growing hubs of wind and solar projects. Ninh Thuan province, where the wind farm is located, is a hotspot for renewable projects generating over 80 percent of the country’s renewable power capacity.
With the inclusion of the El Wind Mui Dinh Wind Farm, the company’s total committed capacity of renewable business will reach 814,000 kw.
The latest investment is set to contribute 5 percent to the total renewable portfolio under the group, a Bangpu spokesman told NNA. From April through December of 2019, the farm made about $2 million in EBITDA, Banpu said.
Somruedee Chaimongkol, CEO of Banpu, said, “The El Wind Mui Dinh Wind Farm is the latest addition that helps expand the company’s portfolio of renewable energy and generate more revenue and cashflow from the business for Banpu.”
On Banpu’s prospects in the fast-growing Southeast Asian country, she said, “its increasing need for energy translates to even more potential opportunities for Banpu in the future. Recently, the Vietnamese government approved 7 million kw of new wind projects to be built in. By 2025, the country is looking at a total wind power generation capacity of nearly 12 million kw.”
The El Wind Mui Dinh Wind Farm has been operating since April 2019 with an installed capacity of 37,600 kw.
Its 16 wind turbines, each with a capacity of 2,350 kw, are designed and maintained by Enercon GmbH, a leading wind power company and turbine manufacturer from Germany. Banpu has a 20-year maintenance services agreement with Enercon.
Meanwhile, Bangpu’s wholly owned wind project in Soc Trang province is set to generate a total of 80,000 kw when fully completed after the third phase of development. Currently, the first phase of 30,000 kw is now under construction, the company told NNA.
BanpuNEXT has acquired renewable energy businesses including wind and solar farms throughout China, Japan, Taiwan and Vietnam. The group operates in 10 countries including Indonesia, Australia, Laos, Mongolia, Singapore and the United States.