The Blue Circle, a Singapore-based renewable energy developer backed by Vietnamese investment company TSV Invest, has received the go-ahead for a $200 million wind project in the Ninh Thuan province, South Vietnam.
The deal, which follows the installation of the first 100-metre meteorological mast by The Blue Circle in October 2014, is the company’s second in the country. It is also the third, out of 48 registered projects, to come to fruition since Vietnam implemented its the wind power scheme in 2013, with delays largely attributed to the challenging regulatory environment and low cost of conventional energy.
“This second approval of a wind project in Ninh Thuan province confirms our commitment to develop wind power in Vietnam as well as the success of our partnering strategy. We selected this site two years ago as an ideal location for its excellent wind potential and we are honoured to have been chosen by the Ninh Thuan provincial authorities to develop the site into a wind power project,” said Olivier Duguet, chief executive officer of The Blue Circle.
The awarded site, which comprises 933 hectares along the Highway 1, is mainly used for rice cultivation today. The 100-megawatt project will require a total investment of up to $200 million. The electric substation that will connect the turbines to the national grid is already on site.
The next step for the Dam Nai site development will be the installation of a 100-metre meteorological mast, expected to happen in the coming weeks, as well as the start of engineering studies. Construction is expected to start after permitting is completed by mid-2016.
The Blue Circle looks to bridge what it describes as a “development gap” in Southeast Asia. Its growth strategy is twofold: through the development of its own projects and through acquisitions or partnerships with local developers. Vertically integrated, the company identifies green field sites, carries projects through development and construction, and operates the generating assets.
Based in Ho Chi Minh City, TSV Invest has VND300 billion (€12 million; $14 million) under management. It targets projects in sectors including renewable energy, petroleum, real estate, agriculture and manufacturing.