Norwegian renewables outfit Scatec Solar is entering the wind energy market through the acquisition by SN Power of an operational wind farm in Vietnam.
SN Power, which Scatec agreed to buy last month, has signed a binding agreement to acquire 100% of the shares in the 39.4MW Dam Nai wind farm from Mekong Wind.
Mekong Wind is owned by the Singapore-based Armstrong South East Asia Clean Energy Fund.
Dam Nai is located in Ninh Thuan province approximately 350km north of Ho Chi Minh City in the southern part of the country.
It was constructed in two phases – a 7.9MW stage that reached commercial operations in October 2017 and a second 31.5MW phase that came online in December 2018.
The wind farm, which encompasses an area of approximately 133,000 square metres, features 15 Siemens Gamesa 2.625MW turbines.
It has average annual generation is 123 gigawatt-hours with expected annual revenues of $10.5m under the 20-year feed-in tariff scheme for wind in Vietnam.
Dam Nai is financed by non recourse debt from the Bank for Investment and Development of Vietnam.
Scatec Solar said it supports this investment and the project economics meets its return thresholds.
Closing of the Dam Nai transacton is expected to take place in first quarter 2021.
On 16 October, Scatec Solar signed a binding agreement to acquire 100% of the shares in SN Power.
The Dam Nai Wind acqusition was not included in the SN Power transaction scope and purchase price but will now be included, Scatec Solar said.
The SN Power transaction is conditional upon customary regulatory approvals and local competition approvals and is likely to be completed in the first half of 2021.
Until then the two companies will continue to operate as separate entities.