Through its subsidiaries, Super Energy will hold a 100 per cent interest each in two projects, and 70 per cent and 80 per cent in two others, respectively. The Vietnam-based Loc Ninh solar power cluster, originally developed by Vietnamese state-owned power generator Electricity of Vietnam (EVN), has a total installed capacity of 750 MW.
Super Energy calculated the return on investment rates from these four investment projects at around 17 per cent over a period of 20 years.
The firm said the asset acquisition will “enhance the company’s strengths and competitiveness in the future”, and help it receive investment incentives in renewable energy from the Vietnamese government.
This new investment comes only a month after the Thai firm announced the $51.2-million acquisition of Thinh Long Phu Yen Solar Power.
“Vietnam is a country with high potential for renewable energy development, especially solar and wind energy,” it said.
The country is seeing increased interest from overseas investors in the renewable energy sector. Recent deals in the sector include VinaCapital’s subsidiary SkyX Solar setting up a solar joint venture with local firm SAIGONTEL, Dutch development bank FMO’s $6.5-million consideration for TTC Energy, and Filipino power major AC Energy’s investments in BIM Group and Mui Ne Wind Project.
Meanwhile, Philippine-listed electricity giant Aboitiz Power has terminated its planned acquisition of Mekong Wind, a deal it had earlier planned for $46 million.
Vietnam’s electricity demand has increased at a rapid pace of 10 per cent annually over the past five years, according to a McKinsey research.