Banpu has acquired El Wind Mui Dinh operating wind farm located in Vietnam.
The purchase consideration payable is approximately $66 million, subject to certain adjustments outlined in the Sales and Purchase Agreement (SPA). The transaction remains subject to customary approvals and conditions precedents in accordance with the SPA with completion expected to take place in the fourth quarter of 2020.
The investment is made through BRE Singapore (BRES), an associate company, in which the Banpu holds 50% of shares. For this project, Banpu secured a Feed-in-Tariff (FIT) of 0.085 USD/kWh for a period of 20 years of the Power Purchase Agreement (PPA) with Vietnam Electricity (EVN).
The El Wind Mui Dinh wind farm consists of 16 wind turbines, each with a capacity of 2.35 MW. The wind farm achieved its commercial operation in April 2019 with an installed capacity of 37.6 MW.
Its 16 wind turbines, each with a capacity of 2.35 MW, are designed and maintained by Enercon GmbH. Banpu has a 20-year full-comprehensive maintenance services agreement with Enercon through Enercon Partner Konzept (EPK) contract. This ensures the operational reliability of the project in the long run.
The El Wind Mui Dinh wind farm is located in Ninh Thuan province, South Central Coast Region of Vietnam.
“The investment in the wind asset in Vietnam is a testament to Banpu’s continuous commitment to our Greener & Smarter strategy. 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. Vietnam is one of the fastest-growing economy in the world and one of the very few with growing GDP given the current global situation. Its increasing need for energy translates to even more potential opportunities for Banpu in the future. Recently, the Vietnamese government approved 7 GW of new wind projects to be built in. By 2025, the country is looking at a total wind power generation capacity of nearly 12 GW.
“As one of the international developers to have entered the Vietnamese market, especially the strategic province for renewable project such as Ninh Thuan, Banpu is paving ways for long-term investment with an operating asset to help strengthen our existing portfolio of project under development. We are committed to building a sustainable business growth that keeps pace with the global and local energy trend – decarbonization. With our total committed capacity of renewable energy, we are looking at emissions reduction of nearly 700,000 tons per year or the equivalent of over 40 million trees planted. For Banpu’s upcoming investments, we are focusing on a business that provides a stable and continuous cashflow, upside potential and long-term value growth for our stakeholders.”Somruedee Chaimongkol, CEO of Banpu.
The Banpu group aims to achieve the power generation capacity of 6,100 MW within 2025.