Introduction
In this report, Vietbiz will introduce actual M&A deals in the wind power generation sector that we are able to introduce. First, we will briefly review the wind power situation in Vietnam, and then introduce actual deals in the latter half of the page.
Current Status of Wind Power Development in Vietnam
Vietnam is one of the most promising countries in the Southeast Asian region for the development of wind energy. More than 39% of Vietnam’s total land area is above 65 meters in elevation, and it is estimated that wind power can be generated at an average annual wind speed of more than 6 m/s. This corresponds to a generating capacity of 512 MW.
Since the Vietnamese Prime Minister promulgated a number of policies supporting the development of wind power projects, many projects have been proposed and are under construction. The largest wind power project in Vietnam is the 99 MW Bac Lieu wind farm, while the smallest project is the 6 MW Phu Quy wind farm.
Wind Power M&A Deal Introduction
This chapter will provide an overview of actual projects that Vietbiz can introduce. Pseudonyms will be used for project owners.
Company A Wind Power Generation Project ①.
The project was developed by a major Vietnamese wind power company.
Basic Information
| 1 | location | Central Vietnam |
| 2 | type | Onshore wind farm |
| 3 | output (e.g. power) | 48 MW |
| 4 | capital structure | Own capital: 35%, others’ capital: 65% |
| 5 | Transferable Ratio | Up to 100%. |
| 6 | initial investment | Approximately US$80 million |
| 7 | situation | working, valid |
| 8 | Commercial Operation Date | October 29, 2021 |
| 9 | Turbine Manufacturer | Envision (15 units) |
| 10 | Grid connection (kV) | 220kV station |
| 11 | Feed-in tariff price | 8.5 US cents/kWh after 20 years from the date of commercial operation |
| 12 | sale price | US$3 million/MW (negotiable) |
| 13 | Internal rate of return | 15% in financial statements |
Company A Wind Power Generation Project②
ベトナムの大手風力発電会社が開発したプロジェクトである。
Basic Information
| 1 | location | central Vietnam |
| 2 | Type | Onshore wind farm |
| 3 | output (e.g. power) | 51.2 MW |
| 4 | capital structure | Own capital：30％、Others’ capital：70％ |
| 5 | transferable ratio | Up to 100% |
| 6 | initial investment | US$84 million |
| 7 | situation | working, valid |
| 8 | commercial operation date | October 29, 2021 |
| 9 | turbine manufacture | Envision (16 units) |
| 10 | grid connection (kV) | 220kV station |
| 11 | Feed-in tariff price | 8.5 US cents/kWh after 20 years from the date of commercial operation |
| 12 | sale price | 3 million dollars/MW (negotiable) |
| 13 | Internal rate of return | 15% in financial statements |
Company B Wind Power Generation Project
Basic Information
| 1 | location | central Vietnam |
| 2 | type | onshore wind farm |
| 3 | output (e.g. power) | 100 MW |
| 4 | initial Investment | US$178 million |
| 5 | capital Structure | own capital：20％、others’ capital：80％ |
| 6 | Transferable Ratio | 70-80% |
| 7 | Feed-in tariff price | 8.5 US cents/kWh |
| 8 | tabine manufacture | Envision and Dongfeng |
| 9 | wind speed | 7-8 m/s |
| 10 | Commercial Operation Date | October 30, 2021 |
| 11 | sale price | 3 million dollars/MW (negotiable) |
| 12 | Internal rate of return | 15% in financial statements |
Company C Wind Power Generation Project
Basic Information
| 1 | location | central Vietnam |
| 2 | type | onshore wind farm |
| 3 | output (e.g. power) | 26.4 MW |
| 4 | initial investment | 45 millions |
| 5 | transferable price | Up to 100% |
| 6 | Feed-in tariff price | 8.5 cents/kWh |
| 7 | tabine manufacture | GE (11 turbines x 2.4MW) |
| 8 | commercial operation date | October 2021 |
| 9 | grid connection(kV) | 110kV |
| 10 | Reason for sale | To invest in other projects |
| 11 | sale price | undisclosed |
| 12 | Internal rate of return | 15% in financial statements |
Current Status of Photovoltaic Development in Vietnam
According to World Bank (WB) statistics for 2022, Vietnam produced 16,500 MW in 2020, making it the country with the most installed PV capacity in Southeast Asia. Vietnam is also among the top 10 countries with the most solar PV installed capacity in the world in 2020.Vietnam has the opportunity to become one of the leaders in renewable energy to meet its green energy goals for 2050.
Photovoltaic M&A deals
In this chapter, Vietbiz will introduce the actual solar M&A deals that we can introduce.
Company D Solar Power Generation Project
Basic Information
| 1 | location | central Vietnam |
| 2 | type | solar power plant |
| 3 | maximum output | 50 MWp |
| 4 | Quantity of solar panels (pcs) | 113,624 |
| 5 | Transferable Ratio | Up to 100% |
| 6 | commercial operation date | December 2022 |
| 7 | situation | working, valid |
| 8 | Internal rate of return | 19% in financial statements |
| 9 | sale price | undisclosed |
| 10 | Feed-in tariff price | 7.09 cents /kWh – 20years |
Conclusion
In this report, we have introduced four projects in the wind power sector and one project in the solar power sector in Vietnam that Vietbiz can actually introduce.
If you are interested and would like more information, please click the button below to contact ONE-VALUE Corporation, the operator of Vietbiz.
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