SET-listed Ratch Group has acquired a 50% share in Singapore-based energy firm Nexif Energy BT Pte in a 272.58-million-baht deal to expand its wind power business in Vietnam.
Nexif Energy BT Pte owns Nexif Energy Ben Tre One Member Co, which holds a development licence for the 80-megawatt Nexif Ben Tre wind power project, said chief executive Kijja Sripatthangkura.
Construction is scheduled to take roughly 18 months.
The facility, which is expected to start commercial operations around December 2022, will supply electricity to state-run Electricity Vietnam under a 20-year power purchase agreement.
Ratch plans to use some of the 8 billion baht in proceeds raised from its green debenture issuance in November last year for the share purchase.
Nexif Ben Tre is Ratch’s second wind power project in Vietnam, following its acquisition of a 51% share in Thanh Phong wind farm.
“The Vietnamese government has formulated a national power development master plan to accommodate its economic growth and social development in which alternative energy development, particularly wind and solar power, has been targeted,” said Mr Kijja.
He said the asset purchase will help Ratch rapidly expand its renewable energy resources to a target of 2,500MW by 2025.
The company has two projects in Australia operating commercially: the 227MW Collector wind farm (wholly-owned equity) and the 214MW Yandin wind farm (70% equity holding).
Ratch studied potential wind power projects in many countries where it has specified a target, said Mr Kijja.
Last year Ratch acquired 49% ownership from Nexif Energy’s Rayong power plant project in Thailand in a deal worth US$21 million (around 662 million baht).
The 92MW gas-fired co-generation project, which is scheduled to begin operation in April 2022, is located in SSP Industrial Park in Ban Khai district, Rayong.
Ratch has many renewable energy projects in Thailand, Laos, Australia, Indonesia and Vietnam.
The company’s facilities have 1,100MW in total equity capacity, comprising 719MW of wind power, 72MW of solar power, 304MW of hydropower and 3.96MW of biomass energy.