Mainstream Renewable Power and GE Energy Financial Services, a GE Capital business unit (NYSE:GE), have signed a term sheet to develop, build and operate large scale wind power plants in Vietnam.
The projects are expected to comprise both greenfield and partially developed sites, are intended to include co-operation with local and international developers, and will receive financing through a Mainstream and GE Energy Financial Services joint development agreement. The aim of the agreement is to compliment the 1GW initiative that GE and Vietnam’s Ministry of Industry and Trade signed in May 2016 to accelerate large-scale Vietnamese wind project buildout.
Commenting on the signing of the agreement, Mainstream Renewable Power’s chief operating officer Andy Kinsella said: “Delivering low-cost renewable energy in high-growth markets such as Vietnam is Mainstream’s key strategic focus. We have a strong track record as a leading developer in Africa and South America, we look forward to expanding our operations in Asia and working with GE to bring much needed power to Vietnam.”
By combining Vietnam’s abundant wind resource with GE technology, know-how and in-country manufacturing capability and Mainstream’s expertise in development, construction and operations, the partners aim to better enable the country to reach its 2020 renewable energy target.
“GE Energy Financial Services engages in strategic co-development opportunities with select GE customers and in countries where GE’s capital, technology and industrial presence can be leveraged to add real tangible value – we call this the GE Store approach,” John Bottomley, GE Energy Financial Services’ managing director and global development leader, added.
To meet the increasing power demand, Vietnam’s power master plan foresees increasing output from 194–210 billion kilowatt hours (kWh) in 2015 to 330–362 billion kWh in 2020. As renewable sources are part of Vietnam’s energy mix, this growth in power supply will also boost the demand for renewable energy. The country’s Sustainable Development Strategy 2011–2020 identifies clean and renewable energy development and its growing share in Vietnam’s energy consumption mix as priorities for a sustainable economy.
Mainstream Renewable Power is the world’s leading independent developer of wind and solar power, with almost 10,000MW in development and nearly 700MW delivered into construction and commercial operation. Founded in 2008, the company employs over 160 people and has offices across five continents.
A strategic GE Capital business, GE Energy Financial Services is a global energy investor that provides financial solutions that help meet the world’s energy needs. Drawing on its technical know-how, financial strength and strong risk management, GE Energy Financial Services invests in long-lived and capital intensive projects and companies. The firm has 35+ years of experience managing energy assets through multiple economic cycles, and a global portfolio that spans conventional and renewable power, and oil and gas infrastructure projects.