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Japan’s Hitachi purchases 35% stake in Trung Nam Group's wind farm

Van Dat Tuesday | 05/18/2021 09:56

The 152 MW wind farm that Trung Nam Group finished yesterday in Ninh Thuận’ Province is the largest in Việt Nam. — Photo courtesy of Trung Nam

Hitachi SE, an arm of Hitachi Group, has expanded renewable energy business in Vietnam by signing a strategic cooperation agreement with Trung Nam Wind Power JSC, a unit of Trung Nam Group.

After the deal, the Japanese renewable energy form Hitachi SE will own a 35.1% stake in the wind farm. The event also marked a new step for Trung Nam Group in attracting foreign investors to the firm's renewable energy projects.

The group, which owns 70% of the company, will continue to play a key role in the project's management and development.

Currently, the group’s wind power arm is operating a 151.95 MW wind farm in Ninh Thuan province worth VND4 trillion ($172.4 million), with an estimated output of 432,000,000 kWh per year.

The cooperation will give Trung Nam Group additional funds from partners and increase its capital to continue implementing renewable energy projects.

Trung Nam Group has put 2 solar power projects in Thuan Bac district, Ninh Thuan province, and in Duyen Hai district, Tra Vinh province into operation with a total capacity of over 360MW, along with wind power projects in Thuan Bac with a total capacity of over 151.95MW.

In addition, in 2020, Trungnam Group becomes the first private investor in Vietnam to build and put the 500kV substation and 220/500kV transmission line combined with the 450 MW Trung Nam Thuan Nam Solar Power Plant into operation.

Trung Nam Group is currently implementing several energy projects to reach the goal of connecting 10GW to the national grid by 2027. Trung Nam Group is planning to build 900 onshore, offshore, and nearshore wind towers in localities such as Dak Lak, Gia Lai, Tra Vinh, Ninh Thuan.

Along with an economic and social growth rate of more than 6%, domestic energy demand grows at a rate of 9-10% per year.

Vietnam is implementing many policies to encourage the development of renewable energy projects, not only to meet rising energy demand, but also to reduce greenhouse gas emissions, develop clean energy, and contribute to long-term development. Vietnam has set a target of producing 11,8GW of electricity from wind power by 2030.

Last year, the group became the first private investor in Vietnam to build and put a 500kV substation and 220/500kV transmission line combined with the 450 MW Trung Nam Thuan Nam Solar Power Plant into operation.

The group is working on other projects in Dak Lak, Gia Lai, Tra Vinh and Ninh Thuan, aiming to connect 10GW to the national grid by 2027.

National energy demand grows at a rate of 9-10% annually, so Vietnam is implementing many policies to encourage the development of renewable energy projects, not only to meet rising energy demand but also to reduce greenhouse gas emissions. Vietnam has set a target of producing 11.8GW of electricity from wind power by 2030.

Trung Nam Wind Power Joint Stock Company and Hitachi SE sign a strategic cooperation agreement in HCM City. (Photo: courtesy of Trung Nam Group)
Trung Nam Wind Power Joint Stock Company and Hitachi SE sign a strategic cooperation agreement in HCM City. (Photo: courtesy of Trung Nam Group)

Hitachi SE, along with its member companies, operates 30 wind power companies in Japan (total installed capacity is 248MW). Through these activities, Hitachi SE collaborates with the local community by providing a portion of the energy to promote agriculture under the cooperative agreement.

With this first investment in Vietnam, Hitachi SE hopes to strengthen its strategic partnership with Trungnam Group in the development of new wind power projects, as well as the development of the renewable energy industry to contribute to Vietnam's long-term social and economic development. 

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