Scatec Solar ASA – SN Power to acquire its first wind farm in Vietnam

SN Power AS, has signed a binding agreement to acquire 100% of the shares in the 39.4 MW Dam Nai Wind Power Joint Stock Company in Vietnam from Mekong Wind Pte Ltd which is fully owned by the Singapore based Armstrong South East Asia Clean Energy Fund.

Dam Nai Wind, is located in the “renewable energy capital” of Vietnam in the Ninh Thuan province approximately 350 km north of Ho Chi Minh City in the southern part of the country. The wind farm was constructed in two phases – Phase I (7.9 MW) reached commercial operations in October 2017 and Phase II (31.5 MW) reached commercial operations in December 2018. The site encompasses an area of approximately 133,000m2, at 10 metres above sea level, with flat topology and is surrounded by and interspersed with rice fields.

The asset consists of 15 Siemens wind turbine generators, each with a rated capacity of 2.625 MW. The average annual generation is 123 GWh with expected annual revenues of USD 10.5 million under the 20 year Feed In Tariff scheme for wind in Vietnam. The wind farm is financed by non recourse debt from the Bank for Investment and Development of Vietnam (BIDV).

Scatec Solar supports this investment and the project economics meets the return thresholds of Scatec Solar.

Closing of the Dam Nai Wind transacton is expected to take place in first quarter 2021.

On 16 October 2020, Scatec Solar signed a binding agreement to acquire 100% of the shares in SN Power, a leading hydropower developer and IPP. The Dam Nai Wind aqcusition was not included in the SN Power transaction scope and purchase price announced on 16 October, and the Dam Nai Wind aqcusition will now be included in the SN Power transaction scope and purchase price.

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.