Booming Vietnam Solar Draws Thai Firms To Invest

• Vietnam, among the last sizeable markets that are still using Feed In tariffs (FIT) in solar, has managed to bring in worldwide focus due to its plans.

The company has a plan in position to build 18 GW of solar energy plants by 2030. Of this recommended 18 GW, 4.5 GW has already been mounted by the nation's feed-in-tariff (FIT) 1 policy, as well as an additional 1.5 GW is likely to be included under FIT 2. The rest is likely to be a mix of tendered and also assisted projects, as the country shifts far from FIT to a tender and also auction led regime.

For Thai companies, that makes the adjoining market an appealing area for financial investment. Thai energy company Gunkul Engineering, as an example, has acquired the 50-megawatt Phong Dien II solar power plant in the main Vietnamese province of Thua Thien-Hue for US$ 39.9 million.

The facility started commercial operation on December 15 with a feed-in tariff (FIT) of 7.09 US cents(Rs 5.25 approx.) per kilowatt-hour for 20 years.

The deal, completed in late November, consists of the acquisition of a 49% stake from Bangjak Green Energy, a subsidiary of Bangkok-based BS Industry Service, and also 51% from 2 Vietnamese investors.

The acquisition belongs to Gunkul Engineering's plans to expand in Southeast Asia in the renewable resource field, which it sees as reduced danger and also high development potential.

Gunkul is additionally purchasing the Tan Chau solar plant in southern Vietnam's Tay Ninh province bordering Cambodia for a reported US$ 47 million, its fourth such purchase straight this year. The plant started operations in October with the exact same FIT of 7.09 United States cents per kWh for 20 years.

Previously, in February, the Thai firm likewise acquired 2 solar energy plants with a combined generation capacity of 60MW for US$ 60.6 million in the district, which additionally borders Ho Chi Minh City, Vietnam's economic giant.

• Tri Viet 1 and Bach Khoa A Chau 1, each with a capacity of 30MW, started industrial procedures in May 2019. The nation's state utility EVN (Electricity Vietnam) acquires its power at a FIT of 9.35 US cents per kWh for 20 years.
• Meanwhile, Gulf Energy Development has actually boosted its possession in 2 solar farms, TTC 1 and also 2, in the very same district to 90%, from 49% in 2019. The offers were made with its Vietnamese companion Thanh Cong Group (TTC).

Both projects, anticipated to be activated in 2021, will market power to EVN for 20 years, although FITs have actually not been revealed.

In Binh Phuoc district, close to Tay Ninh, Bangkok-based Super Energy Corporation is spending as much as US$ 477 million in four solar energy plants, Loc Ninh 1-4, with a combined ability of 750MW. The facilities were arranged to start operations this December.

Other Thai companies buying Vietnam's solar industry consist of B.Grimm Power, BC Container Glass, and Begistics on the manufacturing side.

Vietnam has actually become a top quality manufacturing choice too, for firms looking to run away revengeful sanctions from the US along with various other markets. A placement that was taken pleasure in by Malaysia, for example, up until lately.