Norwegian Scatec Solar ASA's SN Power to acquire its first wind farm in Vietnam

November 12, 2020 | 19:31
The Norwegian SN Power AS has signed a binding agreement to acquire 100 per cent of the shares in the 39.4MW Dam Nai Wind Power JSC in Vietnam from Mekong Wind Pte., Ltd. which is fully owned by Singapore-based Armstrong Southeast Asia Clean Energy Fund.
norwegian scatec solar asas sn power to acquire its first wind farm in vietnam
Norwegian Scatec Solar ASA – SN Power to acquire its first wind farm in Vietnam

Dam Nai Wind is located in the “renewable energy capital” of Vietnam, in Ninh Thuan province approximately 350km north of Ho Chi Minh City in the southern part of the country. The wind farm was constructed in two phases – Phase I (7.9MW) and reached commercial operations in October 2017 and Phase II (31.5 MW) reached commercial operations in December 2018. The site encompasses an area of approximately 133,000 square metres, 10 metres above the sea level with flat topology surrounded by and interspersed with rice fields.

The asset consists of 15 Siemens wind turbine generators, each with a rated capacity of 2,625MW. The average annual generation will be 123GWh with expected annual revenues of $10.5 million under the 20-year feed-in tariff scheme for wind in Vietnam. The wind farm is financed by non-recourse debt from the Bank for Investment and Development of Vietnam (BIDV).

Scatec Solar supports this investment and the project economics meets the return thresholds of Scatec Solar.

The closing of the Dam Nai Wind transaction is expected to take place in the first quarter of 2021.

On October 16, 2020, Scatec Solar signed a binding agreement to acquire 100 per cent of the shares in SN Power, a leading hydropower developer and IPP. The Dam Nai Wind acquisition was not included in the SN Power transaction scope and purchase price announced on 16 October, and the Dam Nai Wind acquisition will now be included in the SN Power transaction scope and purchase price.

The SN Power transaction is conditional upon customary regulatory approvals and local competition approvals and is likely to be completed in the first half of 2021. Until then the two companies will continue to operate as separate entities.

By Thanh Van

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