Banpu and power business arm Banpu Power (BPP) have joined forces to acquire El Wind Mui Dinh, an onshore wind farm in southern Vietnam, in a deal worth US$66 million (2.05 billion baht).
The companies recently agreed to buy the 37.6-megawatt facility in Ninh Thuan province, according to a report presented to the Stock Exchange of Thailand.
Banpu chief executive Somruedee Chaimongkol said the transaction process will be completed in the fourth quarter.
The investment was made through BRE Singapore, a subsidiary of Banpu Next in which Banpu and BPP each hold 50% of shares.
BRE also signed a 20-year maintenance contract with Enercon GmbH, a German wind power firm, through Enercon Partner Konzept (EPK).
El Wind Mui Dinh comprises 16 wind turbines, each of which produces 2.35MW of electricity from wind at an average speed of 6.6 metres per second.
Ms Somruedee said Ninh Thuan is Vietnam's hub for renewable energy resources because 80% of the nation's renewable power is generated from the province.
The El Wind Mui Dinh has been operating since April last year and is entitled to a feed-in tariff of 8.5 cents per kilowatt-hour for up to 20 years.
She said wind power supplies electricity to Vietnam under a power purchase agreement with Vietnam's state-run Electricity Vietnam (EVN).
The latest asset acquisition is aimed at achieving the companies' goal to have total renewable energy capacity of 814MW.
Ms Somruedee said the company is highlighting renewable energy in its power portfolio under the Greener & Smarter strategy.
She said Vietnam has potential in the renewable sector because its government seeks new investment to achieve a target of 7,000MW from wind power by 2025.