AboitizPower bullish on Vietnam prospects

MANILA, Philippines — Aboitiz Power Corp. sees more opportunities in the Vietnam market with the expansion of its recently acquired wind power plant and other possible project acquisitions like solar and wind developments.

The company is still actively on the lookout for renewable energy projects in the country, AboitizPower chief operating officer Emmanuel Rubio said in an interview Wednesday night.

“We’re looking for projects eligible for FIT (feed in tariff) like solar and wind. Some are operating, some are for development,” he said.

This after it acquired the 39.4-megawatt (MW) Dam Nai Wind power facility in Ninh Thuan Province last month, which opens the door to further understand the Vietnamese power industry, Rubio said.

“What’s important is it opens doors for us this initial acquisition,” Rubio said.

The wind power plant was acquired from Armstrong Southeast Asia Clean Energy Fund Pte. Ltd. for $46 million, subject to closing within the fourth quarter.

AboitizPower bought Singapore-incorporated Mekong Wind Pte. Ltd., which holds a 99.99 percent direct interest in Dam Nai Wind, one of the first successful wind power projects in Vietnam which started operating in late 2017.

The company is scouring the market for projects where it can own up to 100 percent, Rubio said.

“We’re not setting a timeline. If it happens, it happens. [We’re exploring] what’s acceptable for us and for the seller,” he said.

Apart from new acquisitions, the company is also looking at expanding the newly acquired wind project.

Rubio said the project has potential for another 30 to 50 MW in capacity, which would be pursued depending on circumstances.

“We have to be comfortable with the acquisition. It has to be delivered first,” he said.

Another factor is if the Vietnamese government would expand the FIT to another round, AboitizPower executive vice president Luis Miguel Aboitiz said.

Vietnam creates an attractive environment for the company to increase its commitment and contribution to energy supply security in Southeast Asia through its wide experience and expertise in the power sector. 

The country, one of Asia’s most attractive markets, has a robust economic growth backed by strong government support.

AboitizPower president and chief executive officer Erramon Aboitiz said the acquired wind farm project sets the tone for the company’s expansion in the international market.