The 144 MW intertidal Tra Vinh project is being developed by South Korea’s Woojin Construction, special-purpose company Tra Vinh Wind Power and Netherlands-based development funding provider Climate Fund Managers.
Under the terms of a co-operation agreement signed between the project partners and MEM, the company will oversee the $130m first development phase of 48 MW.
Vietnam has set a renewables target of 10 per cent of its power mix by 2030, but investment in the sector has been slow due to a low FiT rate, lack of transmission infrastructure and the fact that the nation’s power purchase agreement (PPA) offering for both wind and solar projects is seen as ‘unbankable’ by international investors.
MEM said it expects the Tra Vinh wind farm to be the first such project to successfully resolve these issues due to its approach which integrates the insurance, legal and project management aspects of project development and “bridges the various financial, commercial and technical siloes that can arise in the course of developing wind assets”.
The company added that it will supply a dedicated project manager to who will ensure that “the project matures as planned enabling bankability”.
Lars Lund, MEM’s director, said the Vietnamese wind market “possesses considerable investment potential for projects that focus on the fundamentals as a means of reducing costs and ensuring sufficient returns for investors”.
Vietnam currently has around 200 MW of wind power capacity installed, and around 50 projects are in the planning or construction phase.
Earlier this month, the US Trade and Development Agency (USTDA) announced a grant to Vietnamese engineering firm Power Engineering Consulting Joint Stock Company 2 (PECC2) for development of a 100 MW nearshore windfarm in Vietnam’s southern region.