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Dragon Capital & Pacifico Energy open Mui Ne solar power plant

Released at: 09:06, 13/06/2019

Dragon Capital & Pacifico Energy open Mui Ne solar power plant

Photo: Dragon Capital

Plant in south-central region begins commercial operations on June 12.

by Hong Nhung

Dragon Capital and Pacifico Energy inaugurated and announced the completion of the Mui Ne Solar Power Plant on June 12, which has an installed capacity of 40MW in Mui Ne, Phan Thiet city, south-central Binh Thuan province.

Construction of the plant began in October 2018 on an area of 38 ha and it will generate approximately 68 million kWh of electricity annually, reducing CO2 emissions by 55,447 tons each year. The Electricity of Vietnam Southern Power Company (EVN SPC) will purchase all electricity generated by the plant for 20 years at $9.35 cents per kWh.

The Orient Commercial Bank (OCB) provided financing for the project with a long-term loan agreement with non-recourse project finance terms; the only such finance agreement in the solar market. OCB relied upon the extensive experience of the plant’s owners in the solar market to push the envelope and provide an innovative and replicable financial solution.

The EPC contractor was TTCL Vietnam (formerly the Toyo Vietnam Corporation), a member of the TTCL Group, a joint venture between Thailand and Japan. With more than 20 years of experience as an EPC contractor in Vietnam, TTCL Vietnam completed the project and it successfully supplied electricity to the grid on June 4 - just eight months after construction began.

“The successful implementation of the solar power project was possible due to the partnership between leading solar power investors from the US’s Pacifico Energy and the UK’s Dragon Capital Group,” said Mr. Gavin Smith, Director of Clean Development at Dragon Capital. “The owners effectively combined with the innovative finance from OCB and the Japanese engineering rigor of TTCL.”

“This project marks the beginning of a new era of power investors working in cooperation with EVN SPC, the Binh Thuan Provincial People’s Committee, and the Ministry of Industry and Trade, and our thanks go to them all. The Mui Ne plant was delivered on time and on budget, delivering clean electricity to support Vietnam’s sustainable economic growth.”

“US companies lead the solar market, and Pacifico Energy is a great example of US experience, skill, and capital being applied in new markets that are fast growing and dynamic,” said Ms. Mary Tarnowka, US Consul General in Ho Chi Minh City.

“I’m delighted to see that the project is now up and running on schedule. My congratulations on the great effort of both the local government and the investors. The Mui Ne plant sets a good example of how businesses can engage with and support Vietnam in its transition from coal-fired to renewable energy. I look forward to seeing more low-carbon energy investments in the future.”

The plant is the first cooperative effort between Dragon Capital and Pacifico Energy in Vietnam’s renewable energy sector. Among other investments in energy-related companies on the stock exchange, the plant is the third private-equity investment by Dragon Capital in the power generation sector, emphasizing the growth potential of Vietnam’s power market.

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