Foreign firms to acquire 50MWp solar power plant in central Vietnam for $23.9 mln

The 50-MWp Cam Hoa solar power plant, located in Ha Tinh province with investment of VND1,458 billion ($61.58 million) from local firm Hoanh Son Group JSC, is set to be sold to foreign investors for $23.9 million.

Ha Tinh Solar Power JSC, part of Hoanh Son Group JSC, has submitted applications for the transaction to Ha Tinh province authorities.

BRE Singapore Pte will hold a 99.99% stake at the project, which is among the biggest solar power plants in the north-central coastal region of Vietnam. Two other foreign investors will be Banpu Renewable Singapore and Thailand’s Banpu Next Co.

BRE Singapore Pte is a subsidiary of Banpu Next Co., under Thailand’s energy giant Banpu Plc. After the transaction is completed, Ha Tinh Solar Power JSC will become a wholly foreign-invested company.

Cam Hoa solar power plant entered commercial operation in June 2019. Last year, the factory’s electricity output reached 54.34 million kWh, reaping a revenue of VND128.6 billion ($5.43 million) and paying VND12.8 billion ($540,500) to the state budget. The plant is eligible for a preferential feed-in-tariff (FiT) of 9.35 U.S. cents per kWh.

Last year, BRE Singapore Pte spent $26.69 million on the acquisition of Licogi 16 Gia Lai Investment Renewable Energy JJSC (LCE Gia Lai), a shareholder of Chu Ngoc solar power plant; and Licogi 16 Ninh Thuan Investment Renewable Energy JSC (LCE Ninh Thuan), a shareholder of Nhon Hai solar power plant in Vietnam.

BRE Singapore Pte also spent $14.5 million on purchasing a 49.04% stake at Solar Esco JSC (Solar Esco), the operator of a 20.4 MW of rooftop solar power in Vietnam, with an additional 106 MW under development.

Banpu Next Co. has invested in and developed five renewable energy projects in Vietnam, according to the firm's annual report for 2022. Four, namely the 37.6-MW El Wind Mui Dinh plant, 50-MW Ha Tinh solar power plant, 15-MW Chu Ngoc solar power plant, and 35-MW Nhon Hai solar power plant, have entered commercial operation; while the Vinh Chau wind power project is under study.

SP Group, a Singapore-based provider of electricity and gas transmission and distribution services, has acquired solar power farm assets of 100 megawatts-peak (MWp) in central Vietnam’s Phu Yen province. The two 50 MWp facilities are Europlast Phu Yen and Thanh Long Phu Yen. SP Group announced the two deals on Monday but did not disclose the acquisition prices.

Singapore sovereign wealth fund GIC disclosed last week it would invest 1 billion euro (more than $1.06 billion) to purchase a stake in EDPR, around 5% in the world’s fourth-largest renewable energy producer, to help EDPR accelerate growth in renewables and energy transition in many markets, including Vietnam.

In September 2022, Singapore-based EDPR Sunseap of EDPR acquired two solar projects in Vietnam’s south-central province of Ninh Thuan for $284 million, doubling its operational capacity in the country. The seller was Vietnam’s Xuan Thien Group.