Mainstream Renewable Power and General Electric have agreed to a partnership to develop 1GW of wind projects in Vietnam.
Mainstream, an Ireland-based emerging markets developer, has agreed to finance an undisclosed amount of projects worth around $1.5 billion with GE, which will provide funding and technology. The deal follows an agreement GE reached with Vietnam's Ministry of Industry and Trade in May to increase the country's wind generation.
The falling cost of renewable energy sources is allowing emerging markets like Vietnam to build more projects to meet increasing energy demand. The Southeast Asian country has a target to develop 4,000MW of wind capacity by 2025, in accordance with the agreement signed at the Paris Climate Conference. It has also committed to increasing renewable electricity production from a 3.5 percent share in 2010 to five percent by 2020.
The Blue Circle , a Singapore-based renewable energy developer, received an investment certificate in July from Vietnamese authorities to build a 40MW wind project, the first phase of a 100MW facility.
Andy Kinsella, Mainstream's chief operating officer, said in a statement, “Delivering low-cost renewable energy in high-growth markets such as Vietnam is Mainstream's key strategic focus.” Kinsella said Mainstream, which has a strong presence in Africa and South America, plans to expand operations in Asia.
Last month, Mainstream was awarded seven contracts to build 985MW of wind projects over the next five years, representing 30 percent of the total capacity up for auction.