B.Grimm buys solar PV projects
Vietnamese facilities represent 257MW of capacity for sale to state utility
SET-listed
B.Grimm Power
Plc (BGRIM) has completed a US$35.2-million (1.17-billion-baht) acquisition of large solar photovoltaic (PV) power projects in Vietnam.
The power generation arm of B.Grimm Group used subsidiary B.Grimm Renewable Power 2 Co to acquire an 80% stake in Phu Yen TTP Joint Stock Co, which has a licence to develop solar projects with a capacity of 257 megawatts in Phu Yen province on the south-central coast of Vietnam.
The project is a ground-based solar PV facility that will sell electricity to Electricity of Vietnam under a 20-year purchasing contract.
The large-scale solar power projects, approved by Vietnam’s Ministry of Industry and Trade, are also in line with the policy to promote environmentally friendly power generation over the next two decades.
The deal saw the purchase of 80 million shares in Phu Yen TTP Joint Stock.
B.Grimm said the deal is part of a rapid expansion in the power generation business across Indochina.
The solar PV power in Phu Yen will contribute to B.Grimm’s renewable power portfolio and strengthen its business presence in Vietnam, said B.Grimm Power president Preeyanart Soontornwata.
Earlier, B.Grimm completed the acquisition deal for a 55% stake in the 420MW solar powerhouse in Tay Ninh, southwest of Vietnam.
The Tay Ninh project will be the largest solar PV power farm in Southeast Asia on its commercial operation date (COD) next June.
B.Grimm operates 32 power plants that total 2,000MW in capacity. Fourteen of the plants are co-generation plants and 15 are solar PV plants. The remaining two facilities are hydro and diesel.
The company has more than 1,000MW of capacity under development.
Ms Preeyanart said B.Grimm will have more than 3,000MW in combined power generation by 2022.
“B.Grimm will have another nine projects to develop and operate in the second half of 2018, including a 90MW gas-fired power plant in Rayong to start the COD in October,” she said.
Moreover, seven solar PV power farms are expected to start CODs in December with a combined capacity of 31MW. All farms are local cooperatives under the War Veterans Organization.
B.Grimm’s Nam Che 1 Hydro Power Project in Laos with 15MW capacity is scheduled for COD at the end of this year.
In a related development, B.Grimm Power reported that total revenue in the first half rose by 8.6% to 16.96 billion baht, with net profit for the period surging 28.5% to 1.9 billion baht.
Revenue growth was driven by the CODs of two gas-fired power plants in February and June.
The two units are under small power producer licences (SPPs) and located at Amata City Industrial Estate. Both SPPs are part of the largest factory communities in Thailand.
BGRIM shares closed yesterday on the Stock Exchange of Thailand at 25.50 baht, up 50 satang, in trade worth 240.6 million baht.