04.07.2020, 10:57

Wind farms in Vietnam taken over by Gulf

Gulf Energy Development Plc - the Thai power producer announced in July that it would purchase wind farms in Vietnam worth roughly US$200 million to take advantage of low-interest rates as the firm seeks projects with a quick return on investment.

Wind farm in Vietnam. Photo stock

From this deal, the firm is going to secure another two wind farms with a total capacity of 100 megawatts. The electricity generated will be sold back to Vietnam Electricity for 20 years, starting from 2021.

The deal was inspired by the low-interest rates in Vietnam, Gulf chief executive Sarath Ratanavadi said, and the power conglomerate is looking to expand more in Asia and Europe for the time being.

The wind farms of Gulf Group will contribute to catching up with the trend of environmental protection, developing green and clean energy sources globally, while simultaneously dealing with the concerns of the domestic energy segment as coal, petroleum, and hydropower resources have been fully exploited for a long time.

Gulf buys wind farm in Vietnam. Photo stock

Since mid-2018, this company has acquired shares and invested in dozens of renewable power projects in Vietnam (including solar and wind power) such as Van Giao 1, Van Giao 2, Phan Lam 1, Binh An, Thinh Long, Sinenergy NinhThuan and many other wind power projects. In addition, the Thai energy group Gulf Energy Development has spent trillions VND to buy nearly 100% of shares of two solar power projects in Tay Ninh: TTC1 and TTC 2 and the energy project of Thanh Thanh Cong Group in Ben Tre.

These Foreign Investments go hand in hand with one of Vietnam's top priority: to increase its installed wind power capacity 30-fold to reach 6 gigawatts by 2030, according to Global Wind Energy Association in a recent report. This is a part of the overall plan to have 10% of domestic energy produced from renewable resources, stated from the report.