Thailand-headquartered firm Gunkul Engineering Pcl. (Gunkul) officially confirmed its subsidiary Bright Green Power Co., Ltd.'s buy into the owner of solar power plants in Vietnam.
Particularly, Tri Viet 1 Solar Power Plant and Bach Khoa A Chau 1 Solar Power Plant, each with a capacity of 30MW, are operational since May 2019.
The two power plants, which are located in Tay Ninh, Vietnam, are expected to be in stable operation, producing electricity under 20-year power purchase agreements (PPAs) with state-run Electricity of Vietnam (EVN).
According to newswire Kaohoon, through its arm Bright Green Power Co., Ltd., Gunkul Engineering has pumped altogether $60.6 million into the Vietnamese solar parks.
|Gunkul Engineering officially confirmed that its subsidiary Bright Green Power Co., Ltd. bought into two solar power plants in Vietnam |
Specifically, Bright Green Power has purchased all ordinary shares of Singapore-backed An Yang Pte., Ltd. and Yun Yang Pte., Ltd. – the owner of the two solar plants – from Sungrow Power Pte., Ltd.
The push into solar has been driven partly by a desire for cleaner energy sources.
The latest movement is part of Gunkul Engineering's future plan to jump on the solar bandwagon. It is rumoured that the Thai firm would spend approximately $95.9 million, in line with its plans of increasing investment in Vietnam.
The combination of government incentives and large pools of available capital is also spurring the growth of renewables in Vietnam.
Vietnam enacted its strategic orientations for energy development through to 2030 with a vision for the next quarter of a century. The country has also recently created several favourable policies, including the Politburo’s Resolution No.55-NQ/TW on the orientation of Vietnam’s national energy development strategy to 2030 with a vision towards 2045, to boost renewable energy development.
Preparation for a new programme of corporate power purchase agreements is underway to lure greater funding into the sector.
Gunkul Engineering, founded in 1982, is a Thailand-based corporation specialising in integrated renewable energy and electrical systems business. However, its stock is still flying low, at around TBH2.44 (7.8 US cents) per share as of March 11, according to data compiled by Marketwatch.