Mainstream Renewable Power has agreed to develop three Vietnamese wind projects with a combined capacity of 940MW through tie-ups with local and international developers.
The Dublin-based company will team up with GE Energy Financial Services to build the 800MW, $2 billion Phu Cuong Wind Farm, which is set to be the largest wind farm in the Asian country. This project is part of the 1GW co-development pipeline of Vietnamese wind projects both companies agreed on in September.
Local partner Phu Cuong Group will remain involved in the project through its five development phases, Mainstream said. The first phase, which accounts for 150-200MW, is expected to reach financial close in 2018.
The other two wind projects, the 83MW Thai Hoa Wind Farm and 55MW Thai Phong Wind Farm, will be developed by Mainstream and local developer Pacific Corporation, with their respective first phases also expected to reach financial close in 2018.
“In terms of energy needs and requirements, Vietnam is one of the fastest-growing markets in South East Asia,” said Andy Kinsella, chief executive of Mainstream. The Vietnamese government aims to generate 800MW from renewables by 2020 and 6GW by 2030.
“Investing in Vietnam is very much aligned with our aim of developing large-scale renewable energy projects in high-growth economies with significant demand for new-build power generation,” Kinsella said.
The agreements mark the developer’s first large-scale commitments in Asia, following its work on gigawatt-scale portfolios in South America and Africa.
Earlier this month, the developer launched an investment arm through which it will seek to raise third-party money for its projects in emerging markets. It plans to garner $840 million of equity and debt over the next 18 months to fund projects in Chile, South Africa and Vietnam.
Mainstream says it is working on a pipeline of contracted renewables projects of more than 800MW. It aims to build a 9GW portfolio over the next decade.