A Denham Capital venture acquired 94% of the equity in Song Giang Hydropower JSC, which owns two hydropower projects in Vietnam with a combined 49 megawatts of capacity.
Nexif Energy, which Denham formed in 2015 with Singapore’s Nexif Pte, will get the 37-megawatt Song Giang 2 plant, which has been operating in Khanh Hoa province since December 2014, as well as the 12-megawatt Song Giang 1 plant under construction on the same river and expected to be completed in the second quarter of 2021, the company said in a statement.
The value of the deal or details of any related power purchase agreements weren’t disclosed.
“Vietnam has created a favorable regulatory environment” for renewable investments to meet its growing power demand and is in the process of establishing “a competitive electricity market,” Nexif Energy said in its statement.
The projects will be able to power 74,000 homes, Nexif Energy said. Nexif Energy has other hydro and wind power projects in Vietnam and is part of Denham’s plans to invest in more than 1 gigawatt of renewable and dispatchable power projects in Asia and Australia by 2021.