Thai Super Energy to invest $457 million in four solar power plants in Vietnam

Accordingly, Super Energy Corporation would pay approximately $73 million to purchase controlling stakes of 70-100 per cent of the four Loc Ninh 1-4 solar plants through a subsidiary in Vietnam.

The total transaction value would be no more than $457 million, cited from its regulatory filing to the Securities and Exchange Commission of Thailand. After the investment in the solar plants, the $384 million is set to be poured into the construction which is already underway and will be finished by the end of this year.

Super Energy Corporation from Thailand is looking to step into the solar energy game in Vietnam

Super Energy calculated that returns on investment from the four solar power projects would be around 17 per cent for each project.

“This will enhance the company's strengths and competitiveness in the future and continue to generate revenue for the company. It also expands the company's investment abroad. They will receive investment incentives in renewable energy from the Vietnamese government, such as tax benefits and access to finance,” Super Energy said in its statement.

This new investment comes only a month after the Thai firm announced the $51.2 million acquisition of Thinh Long Phu Yen Solar Power. “Vietnam is a country with high potential for renewable energy development, especially solar and wind energy,” it said. The country is seeing increased interest from overseas investors in the renewable energy sector, according to DealStreetAsia.

VIR also published an in-depth analysis of Decision No.13/2020/QD-TTg – which was issued last week – on encouraging mechanisms for solar power development in Vietnam. The newly-ratified decision sets the deadline of December 31 for solar systems of any scale as commercial operation date and enjoy the feed-in tariff 2 (FiT2) rate, which is considered to be financially attractive.

"Along with the increased FiT for wind and biomass recently announced, Vietnam is undergoing a strong energy transition towards renewable energy following the directives and goals indicated in the Politburo’s Resolution No.55-NQ/TW on the orientation of the National Energy Development Strategy of Vietnam to 2030, with vision to 2045," rooftop solar expert Mai Van Trung told VIR.

There is also huge potential for international developers and investors to join mergers and acquisitions activities.

Previously, another Thai energy firm Gunkul Engineering Pcl. (Gunkul), through its arm Bright Green Power, expressed interest in investing in solar power plants in Tay Ninh province, Vietnam.

SkyX Solar, a subsidiary of VinaCapital Group, has inked a joint venture agreement with SAIGONTEL to build and operate rooftop solar projects for industrial facilities within the industrial parks affiliated with the latter.

On the flip side, Aboitiz Power Corporation from the Philippines confirmed its decision of terminating its planned acquisition of Vietnam’s Mekong Wind due to a condition precedent being unmet by the agreed longstop date.