GE Renewable Energy, global wind and solar company Mainstream Renewable Power, and local Vietnamese partner the Phu Cuong Group have agreed to a $2 billion Joint Development Agreement to develop, build, and operate the 800-MW Phu Cuong Wind Farm in the Soc Trang province of Vietnam.
The 800-MW Phu Cuong project is expected to be the largest wind farm in Vietnam, and will be completed in two phases with the first phase of 200 MW expected to reach financial close in 2018.
The deal was one of five agreements valued at more than $5 billion that GE has agreed to support and develop. The new contract is in support of the 1-GW initiative that GE and the Ministry of Industry and Trade signed in May 2016. GE Renewable Energy has been earmarked as the equipment provider for both phases of the wind farm.
“This is a significant step forward in terms of taking the first phase of this project into construction next year, and in doing so supporting Vietnam in its aim of delivering one gigawatt of renewable energy by 2020,” said Mainstream’s Chief Operating Officer Andy Kinsella.
He added that the agreement is central to Mainstream’s strategic focus of bringing large-scale, low-cost renewable energy to high-growth markets across Asia, Africa as well as South and Central America.
“We look forward to working closely with our partners in bringing this project to fruition,” said Kinsella.
This agreement in Vietnam marks Mainstream’s first large-scale investments in Asia, following the establishment of gigawatt-scale portfolios in South America and Africa.
“Producing electricity from wind energy is a new market in Vietnam,” said Deputy GM for the Phu Cuong Group, Phạm Quốc Anh. “As one of the pioneers, Phu Cuong Group wants to work with strong partners with capacity to ensure the quality of the project. GE and Mainstream are the best partners in this area. We are confident that this collaboration will bring success to the project, contributing to the development of green power to the people of Vietnam.”
GE Renewable Energy has deep roots in Vietnam. The company’s manufacturing plant in the seaport city of Haiphong, which employs 500 workers, can produce multiple products including the 1.X Wind Turbine Generator and 2.X Wind Turbine Generator to electrical control systems components, as well as fabrication components.
Vietnam has established a goal of producing more than 10% of its power from Renewable Energy by 2030.
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