The power generating arm of Thailand's oldest industrial conglomerate, B.Grimm, has partnered with Vietnamese construction company Xuan Cau to develop the largest solar power plant in Southeast Asia at a cost of $420 million.
B.Grimm Power Public Company CEO Preeyanart Soontornwata said the deal was inked last week in Bangkok, witnessed by Prime Minister Prayut Chan-o-cha and Vietnamese Premier Nguyen Xuan Phuc.
Bangkok Post reports Xuan Cau Group is one of the largest conglomerates in Vietnam, running many diverse businesses such as real estate, trading and services, energy and infrastructure.
According to Asia Nikkei Review, the 420-megawatt solar power plant will be located in Tay Ninh, southwestern Vietnam. Commercial operations are due to start by June next year.
"The project got off to a good start and we are on track to meet the COD (commercial operation date) in June 2019," Preeyanart said.
For B.Grimm Power, a reliable local partner should help the investment run smoothly.
It hopes the Vietnamese solar power venture will contribute significantly to the group's revenue and earnings growth, as Vietnam's power demand rises rapidly as the economy grows.
VIETNAM plans to more than triple the amount of electricity it produces from renewable sources and push for a 26 per cent increase in household solar energy usage by 2030, Prime Minister Nguyen Xuan Phuc told Reuters in an interview.
Vietnam will "increase the electricity output produced from renewable sources from approximately 58 billion kWh (kilowatt hours) in 2015 to 101 billion kWh by 2020, and 186 billion kWh by 2030," the Prime Minister said.