Nexif Energy has acquired 94 per cent of the equity of Song Giang Hydropower JSC, a company that owns two run-of-the-river hydropower projects in cascade on the same river totalling 49MW in the central province of Khanh Hoa.
|Nexif Energy adds the Song Giang hydropower project to its budding renewable portfolio in Vietnam |
The two projects are the 37MW Song Giang 2, which has been operating since December 2014, and the 12MW Song Giang 1, which is currently under construction and is expected to be completed in the second quarter of 2021.
Electricity demand in Vietnam is growing by 10-12 per cent annually, creating opportunities for investment in electricity generation, transmission, and distribution infrastructure. To attract investment to meet the growing need for power, Vietnam has created a favourable regulatory environment for investment in renewable energy projects and is currently in the process of establishing a competitive electricity market.
Song Giang hydropower project will produce enough energy to power 74,000 Vietnamese households and will offset approximately 110,000 tonnes of carbon emissions annually. It will also directly create 250 jobs during the construction of Song Giang 1 and will sustain 50 long-term jobs during operation. It will also directly and indirectly contribute to the economic development of the region in other meaningful ways.
“This acquisition will significantly add to Nexif Energy’s portfolio of renewable energy projects in Vietnam and represents a step towards our vision of delivering clean, reliable power to the country and the region," Nexif founder and co-chief executive officer Surender Singh said.
Today’s announcement builds on Nexif's presence in Vietnam with Coc San Hydropower project in Lao Cai province and the wind energy projects in Ben Tre and Soc Trang provinces currently in the development stage. It will also add to the company's projects in Thailand and the Philippines in Asia and a rapidly expanding portfolio in Australia.
“Nexif Energy welcomes the opportunity to develop this project and contribute to Vietnam’s rapidly growing renewable energy sector. This is an important step forward in achieving Nexif Energy’s objective of establishing itself as a leading power generation developer and investor in Asia and Australia. We look forward to acquiring and developing more projects in Vietnam and the rest of our target markets,” added Matthew Bartley, founder and co-chief executive officer of Nexif Energy.
Denham Capital managing director Saurabh Anand added: “Denham Capital is committed to delivering low-cost, clean power at the place and time of need. This agreement represents a significant milestone in our plans to invest in a portfolio of more than 1,000MW of renewable and dispatchable generation projects in Asia and Australia by 2021.”
Nexif Energy was formed in August 2015 by Nexif, a Singapore-based independent power management company, and Denham Capital, a leading global energy-focused private equity firm with more than $9 billion of invested and committed capital across eight fund vehicles. Nexif Energy’s goal is to develop, finance, construct, and opportunistically acquire conventional and renewable power generation assets across Asia and Australia.
Denham Capital is a leading energy and resources-focused global private equity firm with more than $9.3 billion of invested and committed capital across nine fund vehicles and offices in London, Boston, Houston, São Paulo, and Perth. The firm makes direct investments in the energy and resources sectors, including businesses involving international power, oil and gas, and mining, across the globe.
Denham’s investment professionals apply deep operational and industry experience and work in partnership with management teams to achieve long-term investment objectives. For more information about Denham Capital, visit www.denhamcapital.com.