B.Grimm partners with Vietnamese firm for solar
SET-listed B.Grimm Power Plc, the power generation arm of B.Grimm Group, has teamed up with one of the largest Vietnamese conglomerates, Xuan Cau Group, to develop the biggest solar power plant in Southeast Asia, with a combined capacity of 420 megawatts.
The project is located in Tay Ninh, southwestern Vietnam, and is expected to operate by June of next year.
The total development cost is US$420 million (13.7 billion baht) and has a feed-in tariff of 9.35 cents per kilowatt-hour (unit).
Both parties signed a partnership agreement last week in Bangkok, witnessed by Prime Minister Prayut Chan-o-cha and his Vietnamese counterpart, Nguyen Xuan Phuc.
Preeyanart Soontornwata, the chief executive of B.Grimm Power, said the joint venture recently signed with a contractor for the engineering, procurement and construction of the solar power plant.
There are many discussions taking place with local and international financial firms for the project's financing.
Mrs Preeyanart said the solar power venture in Vietnam will contribute significantly to the group's revenue and earnings growth in the long run.
The move is a part of B.Grimm's ambitious goal to drive revenue from overseas power projects to account for 30% of overall revenue by 2022 from 6%.
Xuan Cau Group is one of the largest conglomerates in Vietnam, running many diverse businesses such as real estate, trading and services, energy and infrastructure.
Mrs Preeyanart said the expansion plan will each B.Grimm's goal to install total capacity of 5,000MW by 2022. Part of the goal is to raise the proportion of energy generated by renewable power plants to 30% from 12%.
B.Grimm aims to have 53 projects with 2,938MW in capacity by 2022, and is seeking another 2,000MW in additional projects.
The new projects are going to be in South Korea, Laos, Vietnam and Thailand.
In South Korea, the company is conducting due diligence to develop an offshore wind power farm with Korea Electric Power Corporation (KEPCO), a state-owned power utility, with total capacity of 100MW.
B.Grimm expects to own a 55% stake, with the remaining 45% going to KEPCO, once both parties have completed the agreement.
On Tuesday B.Grimm signed a licence agreement with the Laos government to develop Xe Kong Hydro Power Plant with a capacity of 340MW for $835 million.
SET-listed Ratchaburi Electricity Generating Holding Plc holds 60%, and 20% stakes are owned by B.Grimm and Lao World Engineering and Construction Co.
In Thailand, B.Grimm remains confident in expanding business opportunity to solar rooftop projects with a combined capacity of 70MW nationwide, even as energy policymakers have suspended their plan to purchase renewable-based electricity for the next five years.
The development period of the rooftop programme is expected to conclude this year and scheduled to begin operations next year.