Singapore-based firm invests in Vietnam wind power projects
VIETNAM INSIDER Tue, January 19, 2021
Wind turbines in the central province of Ninh Thuan. Photo by VnExpress/Thuc Trinh.
Clime Capital, the Singapore-based investment management company focused on accelerating the low carbon transition in Southeast Asia, today announced that the Southeast Asia Clean Energy Facility (SEACEF) has finalised an investment facility with Levanta Renewables Pte Ltd, a renewable energy company with a portfolio of development projects in Vietnam.
The investment is committed for a portfolio of three early-stage onshore wind power projects, with a combined capacity of up to approximately 330 MW. With Levanta Renewables’ projects mostly located in Vietnam’s Central Highland region, wind power developments in this region promise to open new wind corridors with more modest wind speeds and better transmission access.
The SEACEF investment will help advance the portfolio at a time when the future price of wind power beyond 2021 has not yet been confirmed by the government of Vietnam which risks causing a slowing down of private sector investment into the sector. The initial funding will support installation of met masts to analyse and confirm the wind resource, advance critical regulatory permits, and confirm environmental and social viability.
Electricity consumption in Vietnam is forecast to rise by 8% a year from 2021 through the end of the decade. Energy infrastructure that will meet this demand while also driving the country’s progress toward net zero by the year 2050 will require a substantial transition to renewable sources. The country possesses highly attractive potential for both onshore and offshore wind power, with positive policy support including amongst the lowest feed-in tariffs in the world. Successful early-stage developments would unlock significant progress to accelerate the advancement of the renewable energy sector in Vietnam.
Mason Wallick, Managing Director, Clime Capital, said, “We are excited at this opportunity to provide critical capital at a key stage in the development of these promising projects in Vietnam. This is what SEACEF is designed to do – our investments catalyse the private sector.”
Sudhir Nunes, Co-Founder and Managing Director at Levanta Renewables, said, “Vietnam’s potential for wind power is a key element of its plans to double the use of renewable energy to meet rapidly growing electricity demand in the next decade and to reduce greenhouse gas emissions toward halting global warming by 2050. Levanta’s pioneering developments in the Central Highlands and Coastal regions aim to demonstrate the region’s viability as a wind power corridor – and thanks to this timely investment, we are well positioned to secure the required development capital funding from a top-tier global strategic investor.”
With an initial focus on Indonesia, Vietnam, and the Philippines and managed by Singapore-based Clime Capital, the South East Asia Clean Energy Facility (SEACEF) is backed by leading international climate foundations and investors.
SOURCE: VIETNAM INSIDER, VIETNAM Tue, January 19, 2021