Banpu Energy Group acquires Mui Dinh Wind Farm
(VEN) - Banpu Public Company Limited, a leading integrated energy solutions company in the Asia-Pacific, is acquiring an operating wind farm, the Mui Dinh Wind Farm.
The acquisition marks another key milestone for the company’s long-term investment in Vietnam, which is one of the world’s fastest growing hub of wind and solar projects, in line with Banpu’s Greener & Smarter strategy to expand its renewable portfolio. The purchase consideration payable is approximately US$66 million (equivalent to approximately THB2.06 billion) 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 Pte. Ltd (BRES), an associate company, in which the company holds 50 percent of share through Banpu NEXT Co. Ltd. (BanpuNEXT). The cash flow from operation of the Mui Dinh Wind Farm since January 1, 2020 belongs to BRES. For this project, Banpu secured a Feed-in-Tariff (FIT) of US$0.085 per kWh for a period of 20 years of the Power Purchase Agreement (PPA) with Vietnam Electricity (EVN).
The Mui Dinh Wind Farm achieved its Commercial Operation Date (COD) on April 23, 2019 with a capacity of 37.6 MW. Its 16 wind turbines, each with a capacity of 2.35 MW, are designed and maintained by Enercon Partner Konzept (EPK), a leading wind power company and turbine manufacturer. Banpu has a 20-year full-comprehensive agreement with EPK. This ensures the operational reliability of the project in the long run.
The Mui Dinh Wind Farm is strategically located in the south-central coastal province of Ninh Thuan, Vietnam. Its geographical location ensures high wind speed together with the Vietnamese government’s supportive policy allows developers and investors to explore opportunities in the area. This results in the province becoming Vietnam’s hotspot for renewable projects with over 80 percent of the country’s renewable power capacity being generated from Ninh Thuan.
Mrs. Somruedee Chaimongkol, Chief Executive Officer of Banpu Public Company Limited, said, “The investment in the wind asset in Vietnam is a testament to Banpu’s continuous commitment to our Greener & Smarter strategy. The Mui Dinh Wind Farm is the latest addition that helps expand the company’s renewable energy portfolio and generate more revenue and cashflow from the business for Banpu. Vietnam is one of the fastest-growing economies 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 the construction of new wind projects with total capacity of 7 GW. The country expects total capacity of its wind power plants to reach nearly 12 GW by 2025.”
“As one of the international developers to have entered the Vietnamese market, especially the strategic location for renewable projects, such as Ninh Thuan, Banpu is paving the way for long-term investment with an operating asset to help strengthen our existing portfolio of projects under development. We are committed to building a sustainable business growth that keeps pace with the global and local energy trends – Decarbonization,” Mrs. Somruedee added.
The Banpu group aims to achieve the power generation capacity of 6,100 MW in 2025 by focusing on markets with growing demand for power consumption, with BanpuNEXT spearheading the development of renewable energy and energy technology. Inclusive of the Mui Dinh Wind Farm, the company’s total committed capacity of renewable energy will be reaching 814 MW.