Banpu expands Vietnam presence with 2 solar plants
Non-oil energy conglomerate Banpu Plc is buying two more new solar power facilities, worth US$26.7 million (around 883 million baht), in Vietnam as it expands its clean energy investment.
The share purchase is through BRE Singapore Pte, a subsidiary of Banpu, and its energy technology arm Banpu Next Co, according to a report submitted to the Stock Exchange of Thailand.
BRE Singapore Pte is expected to acquire a 100% share in two companies that own the 15-megawatt Chu Ngoc solar farm and the 35MW Nhon Hai solar farm.
The transaction is expected to be completed in the second quarter, said Somruedee Chaimongkol, chief executive of Banpu.
The Chu Ngoc solar farm is located in Gia Lai province in the Central Highlands. It started operation in June 2019.
The Nhon Hai solar farm is located in Ninh Thuan province in the south-central coast region. Commercial operation started in July 2020.
Under the 20-year power purchase made with the state-owned Vietnam Electricity, electricity from the two solar farms is sold at a feed-in tariff rate of 9.35 cents a kilowatt hour, according to Banpu.
Ms Somruedee said Banpu will continue to pursue its goal to become a greener and smarter energy company by seeking new investment opportunities in attractive markets.
The company aims to achieve a target to have total electricity generation capacity of 6,100MW by 2025.
Banpu's current capacity, including that from its power plants in Asia-Pacific, is 4,435MW, calculated as a proportion of Banpu's shareholding in various energy businesses.
The two new solar farms follow its acquisition of the 50MW Ha Tinh solar farm, Banpu's first solar farm in Vietnam, according to Kirana Limpaphayom, chief executive of Banpu Power Plc.