B Grimm set for largest solar plant in Asean
B GRIMM Power Plc has taken another step towards internationalisation, expanding its power generation and distribution business in CLMV.
By the end of April, B Grimm will achieve its next milestone in concluding its joint venture agreement with Xuan Cau Co Ltd to construct what is expected to be Asean’s largest solar power plant, with 420 megawatts of installed capacity at Tay Ninh, Vietnam.
Xuan Cau Co Ltd, one of the largest corporations in Vietnam, operates a diverse range of business including real estate, trading and service, energy and infrastructure. Currently, it is working through the contractor selection process and discussing project financing with domestic and international financial institutions.
The project would operate commercially, and is expected to generate revenues by June 2019. The company is confident it will increase the contribution of renewable energy and international investment to 30 per cent of its total portfolio within five years.
Thailand’s Minister of Energy recently announced a limit on purchases of electricity from renewable energy over the next five years. B Grimm Power will be unaffected by the freeze, said CEO Preeyanart Soontornwata, as its main revenue stream is from SPP power plants dominated by natural gas which comprise 2,200 megawatts of installed capacity from the company’s total capacity of 2,518 megawatts.
As the signal does not affect international renewable energy investment, the company will continue to seize opportunities abroad, where the demand is plentiful for electricity and B Grimm’s expertise is needed, Preeyanart said.
B Grimm enjoys opportunities to invest in hydroelectric power plants in Laos, transmission projects in Cambodia and Vietnam, and renewable energy projects in the Philippines and Vietnam.
The company will ensure that all investments on renewable energy projects will have a reasonable return, said Preeyanart. Moreover, to ensure efficiency and stability of electricity generation, B Grim is joining hands with world-class partners to conduct feasibility studies on energy storage and smart grid systems.