Thailand’s Gunkul spends $39.9 mln for 50MW Vietnam solar power plant

Thai power firm Gunkul Engineering has taken over a solar farm in Vietnam at a cost of $39.9 million to rack up revenue in renewable energy sector.

After the deal, Gunkul became the sole owner of Vietnam-based Doan Son Thuy Investment JSC and is ready to operate 50-megawatt Phong Dien II solar power plant in Hue, Gunkul said in a statement posted on its website.

The deal includes the purchase of 49 percent of shares from Bangjak Green Energy, a subsidiary unit of Bangkok-based BS Industry Service Co, and 51% of shares from two individual Vietnamese shareholders.

Construction of Phong Dien II plant was recently completed. The facility will connect to the state grid, operated by Vietnam Electricity, under a power purchase agreement, with a feed-in tariff of $0.0709 per kilowatt-hour granted to the operator for 20 years, Bangkok Post reported.

The project is expected to start commercial operation on Dec 15. The investment in this solar power plant is part of Gunkul’s strategy to become a key player in the renewable business sector.

It plans to grow more in the power plant field, both domestically and internationally. The company sees opportunities in this field and believes the business will incur a low risk.

Gunkul also wants to create a stable source of revenue in the long term. In the power generation segment, the company plans to expand capacity to 1,000MW from 640MW by 2022.

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