Friday, September 13, 2019

Aboitiz Power Corp. eyes renewable-energy expansion in Vietnam


By Lenie Lectura - September 13, 2019

ABOITIZ Power Corp. continues to look for opportunities abroad, including the expansion of its recent wind power investment in Vietnam.
“We are always exploring and there are actually interested sellers,” AboitizPower Chief Operating Officer Emmanuel V. Rubio. “We are looking for projects that are eligible for FIT [feed-in-tariff] and they are wind and solar projects, some operating, some for development. But, I think, what’s important is this opens up doors for us, this initial acquisition, I think the next one will be easier.”
Aboitiz Power International, a wholly- owned subsidiary of Aboitiz Power, signed a share purchase agreement for the acquisition of 100-percent ownership of Vietnam’s Mekong Wind from Armstrong Southeast Asia Clean Energy Fund Pte. Ltd. for $46 million.
Mekong Wind holds a 99 percent direct interest in Dam Nai Wind Power, which owns and operates the 39.4-megawatt (MW) onshore wind power facility in Ninh Thuan Province, Southern Vietnam.
The acquisition is subject to customary closing conditions and is expected to be completed in the fourth quarter of 2019.
Rubio said the wind power project could undertake an expansion by as much as 50 MW more. “I think anywhere from 30 MW to 50 MW. “Wind or solar, those are the ones attractive because of FiT,” said Rubio when pressed for details.
Aside from Vietnam, the power firm is looking at renewable-energy opportunities in Myanmar and Indonesia. “Together with our partners, we are exploring some projects in Indonesia. If ever there would be partners, then we have to look for synergies. We’ve been exploring projects that we can be 100 percent or majority, those are the preferences. We are not setting any timelines for the next one, I think, if it happens, it happens. If it’s acceptable to us, it’s acceptable to the seller,” said Rubio.
The Vietnam acquisition sets the tone for AboitizPower’s expansion in the international market.
Ninh Thuan Province boasts some of the most attractive sites for wind energy in the country. “We are excited for this opportunity not only to expand beyond the Philippines but to also bring our experience in the power generation sector, especially in the renewable-energy space, to Vietnam.
“We are proud of what we have done with our cleanergy brand in the Philippines and we will bring the same level of expertise and dedication to the Vietnam market,” said Rubio.
Dam Nai Wind is one of the first wind power projects in Vietnam to have been successfully brought online with commercial operations having commenced in late 2017.

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