Thai firm spends $39.9 million acquiring solar farm in Vietnam

Gunkul Engineering Plc. has acquired a solar farm in the central province of Thua Thien-Hue

The firm became the sole owner of Vietnam-based Doan Son Thuy Investment JSC (DST) and is ready to operate 50MW Phong Dien II solar power plant in Hue, said Gunkul chief executive Sopacha Dhumrongpiyawut.

She said the deal, which was concluded last week, includes the purchase of 49 per cent of shares from Bangjak Green Energy Co., a subsidiary of Bangkok-based BS Industry Service Co., and 51 per cent of the shares from two individual Vietnamese shareholders.

The construction of Phong Dien II plant was recently completed. The facility will be connected to the state grid, operated by Vietnam Electricity, under a power purchase agreement, with a feed-in tariff of 7.09 US cents per kWh granted to the operator for 20 years.

The project is expected to start commercial operation on December 15.

"The acquisition of DST's ordinary shares is part of the company's plan to invest in solar power business in Vietnam," said Sopacha. "This will help expand the company's business in Southeast Asia and promote our growth in terms of assets and operations."

Over the past year, there have been a few notable power projects in Vietnam involving Thai sponsors, including, among others, the acquisition and financing of 100MW photovoltaic solar power plant in the southern province of Tay Ninh, the acquisition of 550MWp Loc Ninh 1, Loc Ninh 2 and Loc Ninh 3 photovoltaic solar power projects, and the 220kV Loc Ninh-Binh Long Transmission Line Project in Binh Phuoc; the acquisition of a 310MW wind turbine power plant in the Mekong Delta province of Ben Tre; the project take-out financings of 50MWp solar power plant and substations and the 257MWp utility-scale photovoltaic solar power plant in the central province of Phu Yen.

Experts predict that there is a trend in acquisition activities by Thai investors in the offshore, nearshore and onshore wind space, followed by greenfield project financing or project take-out financing activities.