Illustrative image (Photo: VNA)Hanoi (VNA) – Thai firms arestepping up investment in renewable energy projects in Vietnam, particularly solarpower, through merger and acquisition (M&A) deals.
B.Grimm Power Pcl has registered to invest216.7 million USD in the Hoa Hoi solar power project in the central province ofPhu Yen, the fourth largest foreign-invested project in Vietnam so far thisyear.
Vo Cao Phi, Director of the provincialDepartment of Planning and Investment, said this will transform the sharestructure of B.Grimm Power Pcl and Vietnam’s Phu Yen TTP JSC.
Last year, the Thai group spent 32.5 millionUSD buying up to 80 percent of stake at Phu Yen TTP JSC – the investor of the257 MW plant in Phu Yen, which is expected to be put into operation in June2019.
In April 2019, the Export-Import Bank ofThailand (EXIM Thailand) also extended 65 million USD in credit to EasternPower Group Pcl and Communication & System Solution Pcl to finance theconstruction of two solar power plants in Phu Yen, with combined generatingcapacity of 100 MW.
In 2018, Thailand’s Sermsang InternationalCo. Ltd., purchased 80 percent of the Binh Nguyen solar power project in thecentral province of Quang Ngai at 17.6 million USD.
The same year, Gulf Energy Development Groupof tycoon Sarath Ratanavadi tied up with Green Energy Company of Vietnam todevelop a 48 MW solar power project worth 66 million USD in Trang Bangdistrict, the southwestern province of Tay Ninh.
Meanwhile, Superblock Pcl, Thailand’sbiggest solar energy company, has also invested in some projects in Vietnam, inline with its goal of acquiring some renewable energy companies in SoutheastAsia, towards expanding its operation in China, Japan and Australia.
Most of the above-mentioned solar powerprojects are expected to be completed before June 30 to benefit from thepreferential price of solar power at 9.35 US cents/kWh, which will be appliedfor 20 years as from June 30, 2019.
Between April 23 and May 17, a total of 23solar power plants were inaugurated in Vietnam, raising the number of solarpower plants in the country to 27. The figure is hoped to stand at 88 by June30.
According to Audistti Stroithong, apart fromcentral and southern regions that are blessed with the high level of radiation andabundant wind energy, Thai businesses are seeking investment opportunities innorth-central localities of Vietnam.
Thai enterprises are ready to step into theVietnamese market to invest in the renewable energy sector, he said.
The Vietnamese Government has issued variousincentives in terms of credit, corporate income tax and land lease price,helping to lure waves of both domestic and foreign investors in renewableenergy development, including those from Thailand, he said.
Currently, Vietnam has added 121 solar powerprojects to national and provincial electricity planning schemes. Besides,another 221 projects with total designed capacity exceeding 14,330 MW arewaiting for approval.
Experts forecast that the domestic solarpower sector will lure about 12 billion USD by 2025 and 42 billion USD by2035.-VNA
VNA
