The Quang Binh provincial government of Vietnam has signed a memorandum of understanding with the Ayala Group for a 352-megawatts (MW) wind energy project in the region estimated to cost up to $493 million.
This is Ayala Group’s first wind power project in Vietnam.
Earlier this year, unit AC Energy partnered with BIM Group of Vietnam to jointly develop over 300 MW of solar power projects in Ninh Thuan province.
A statement published by the Quang Binh provincial government said Nguyen Xuan Quang, the standing vice chairman of Quang Binh Provincial People’s Committee signed the agreement earlier this month.
First phase of the wind power project will have 252 MW and will cost $353 million.
Hoang Dang Quang, the secretary of the provincial party committee, in the same statement said Quang Binh has a lot of potential for socio-economic development especially tourism as it has a diverse natural resources paired with potential for solar and wind energy projects.
The official also said Ayala Group’s investment will help open up the area’s potential for future developments while assuring the Philippine conglomerate with the “best conditions” to survey and deploy investment projects.
Last month, Ayala Group’s energy development unit AC Energy expanded its footprint outside Asean as it participated in the Australian renewables market through a joint venture with international renewable energy developer, UPC Renewables.
AC Energy and UPC Renewables are also the proponents behind the $150-million 75 MW wind energy project in Indonesia which is its final phase of preparations.
Last year, they also signed a funding arrangement for the development of small island power projects in Indonesia.
Locally, the partners jointly own and operate the 81 MW Caparispisan wind farm project in Pagudpud, Ilocos Norte.
AC Energy is also currently selling half of its thermal energy platform in order to balance its portfolio with renewable sources as well as to raise capital to support growth for more expansion.
The Ayala Group’s energy arm is aiming to reach net capacity of as much as 5 gigawatts by 2025 from the current 1,600 MW portfolio.