BANPU Accelerates Its Greener Portfolio by Acquiring Ha Tinh Solar Farm in Vietnam

Banpu Public Company Limited (BANPU), a leading international versatile energy provider, is accelerating its business transformation under the Greener & Smarter strategy with focus on expanding its greener energy portfolio. To reiterate its strategic direction, Banpu recently acquired Ha Tinh solar farm with a capacity of 50 MW in Ha Tinh Province, Vietnam, through BRE Singapore Pte., Ltd (BRES), a subsidiary company of Banpu NEXT Co. Ltd., in which Banpu holds 50% shareholding.  

BRES entered into a Sales and Purchase Agreement (SPA) for the acquisition of 100% of Ha Tinh Solar Power Joint Stock Company. The acquisition, expected to be completed by the first quarter of 2022, is a part of Banpu’s strategic investments in greener energy and expanding the Company’s ecosystem with an aim to increase EBITDA contribution from greener energy and energy technology business to over 50% by 2025. It is also a step forward in following the Banpu strategic roadmap which is aligned with global initiatives and key objectives to meet climate ambitions.

Mrs. Somruedee Chaimongkol, Chief Executive Officer of Banpu Public Company Limited, said that “Over the course of 2021, Banpu has made remarkable achievements in driving fast-paced expansion of its greener portfolio with continuous acquisitions of operating power plants across Asia-pacific. These include the Nakoso IGCC Power Plant in Japan, the Beryl and Manildra Solar Farms in Australia, the gas-fired CCGT “Temple I” Power Plant in the U.S., and most recently, the Ha Tinh solar farm in Vietnam. Greening up our portfolio is, therefore, a reflection of our endeavor to accelerate development of renewables, energy storage systems and HELE power assets, a key direction as set forth in the Banpu strategic roadmap aligning with global initiatives in combating climate change.

Vietnam is one of our strategic markets as it is one of the countries with the highest growth in green energy. Its power development plan has a high concentration of renewable energy growth especially on wind farms and solar farms. The investment in the Ha Tinh solar farm is in line with our strategic direction, marking another step forward in building global portfolios of renewable energy assets and strengthening the business ecosystem in our strategic markets across the world.”

The Ha Tinh solar power plant has been fully operational since June 2019 and is entitled to the Feed-in-Tariff (FIT) of US cents 9.35/kWh. The facility supplies electricity through the national grid system under a Power Purchase Agreement with Vietnam Electricity (EVN) for a period of 20 years.

Banpu will continue to pursue its portfolio transformation under the Greener & Smarter strategy by seeking investment opportunities to achieve the growth target under energy generation business of 6,100 MW including 1,600 MW of renewables, with the EBITDA from greener energy and energy technology business accounting for over 50 percent of its portfolio in 2025. With the addition of this new solar farm, Banpu’s total committed capacity of renewable business is now at 1,128 MW.

“Banpu is committed to operating its business in alignment with the Environmental, Social and Governance (ESG) principles. We are keen to support the commitment of the Thai government and the governments in countries where Banpu operates, as well as to join force with the global community in resolving climate change issues by developing a strategic roadmap in accordance with the main objectives of the COP26.” concluded Mrs. Somruedee.