The board of directors of B.Grimm Power, the power generation arm of Thailand-headquartered B.Grimm Group, on August 10 approved the investment in 257-MW solar power plant project in Vietnam, announced the company in a press release.
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Under the agreement, the Thai company will buy an 80% stake in the 257-MW solar power plant project, located in Phu Yen province, from Truong Thanh Vietnam Group (TTVN) ) for about US$35.2 million. The investment is said to be under the power purchase agreement for 214.16 MW with the term of 20 years for Electricity of Vietnam (EVN), the sole power distributor in the country.
In this respect, subsequent to the sale of such shares, TTVN will still remain as a shareholder in the project for proportion of 20% of the total shares.
B.Grimm Power will be conducting a final legal, accounting and financial due diligence, and it is yet to sign the material agreement related to the deal.
This investment announcement comes roughly a month after the company said it has agreed to pay US$34 million for a stake in a 420-MW solar project of Vietnamese construction company Xuan Cau in Vietnam. The project, located in Tay Ninh, south-west of Vietnam, is expected to commence operations in June 2019.
According to a master plan, solar power is expected to become the main new renewable energy source in the future, with installed capacity to be increased from around six to seven MW at the end of 2017 to 850MW by 2020, accounting for 1.6% of the country's power generation and 12,000MW by 2030 or 3.3% of Vietnam's power generation.
