Thai energy firm Gunkul Engineering Plc has acquired the 50-megawatt Phong Dien II solar power plant in the central Thua Thien Hue Province for $39.9 million.
The plant is set to begin commercial power generation on December 15 with a feed-in tariff of 7.09 U.S. cents per kilowatt-hour for 20 years.
The acquisition is part of the company’s plan to expand in Southeast Asia in the renewable energy sector, which it says has low risk and high growth potential
Other Thai investors have also made moves to buy solar power plants in Vietnam, taking advantage of the country’s incentive feed-in tariffs to promote solar energy amid growing demand for electricity.
Other Thai energy firms have also been busy in Vietnam.
Gulf Group increased its ownership of two solar farms in the southern province of Tay Ninh from 49 percent to 90 percent during the second quarter of this year.
Super Energy Corporation has invested $457 million in four solar power plants in southern Vietnam.
Power production by Vietnam’s 100 odd solar plants surged 2.3 times year-on-year in the first 10 months to 7.95 billion kilowatt-hours, according to Vietnam Electricity.