EDP Renovaveis, S.A., a top renewable energy firm in Spain, has reached an agreement worth $284 million with Xuan Thien Group, a main power developer in Vietnam, to acquire two solar power projects in Ninh Thuan province.
The two projects, totaling 200 megawatts, alternating current (MWAC), or 255 megawatts, direct current (MWDC), were put into commercial operation in April 2020.
Their power purchase agreements (PPA) with state utility Electricity Vietnam (EVN), the sole power distributor in the country, have the duration of 20 years and the price of $93.5 per MWh.
The deal is expected to contribute to long-term cooperation between the two firms and push the growth of EDP Renovaveis, S.A. (EDPR) in the Asia-Pacific region. It can double the capacity of EDPR in Vietnam, after its entrance in 2021 by acquiring a solar project of Trina Solar with $36 million and the integration of Sunseap in February 2022.
EDPR already operates throughout Asia-Pacific, including Cambodia, mainland China, Taiwan, Japan, Thailand, Malaysia, Indonesia, and South Korea. Previously, its major activities were in Europe and North America, and the firm has been expanding to emerging markets like Brazil, China, India, South Africa, and Australia.
Xuan Thien Group, headquartered in the northern province of Ninh Binh, currently runs seven solar power projects, including two in Ninh Thuan province and five in Dak Lak province. The two in Ninh Thuan province are Xuan Thien Thuan Bac and Thuan Nam 12, with a capacity of 305.9 MW each, Xuan Thien Group said on its website.