EDP Renováveis or EDP Renewables (EDPR) is expanding its position in the Vietnamese solar market, with the acquisition of 2 operational solar power plants from Vietnamese developer Xuan Thien Group, representing 255 MW DC/200 MW AC capacity.
Both the projects, whose individual capacity EDPR doesn't mention, have been operational since 2020 in Thuan Bac district. Power generated is contracted under a 20-year power purchase agreement (PPA) for $93.5 per MWh.
EDPR paid $284 million along with an additional earn out conditioned to performance achievements under the transaction. It now expects to work with Xuan Thien Group to jointly explore additional opportunities in the region, which will contribute to the company's growth prospects in Asia Pacific.
The company entered the Vietnamese solar market in 2021 with the acquisition of a 28 MW facility from Trina Solar (see EDP Renewables Entering Vietnam With 28 MW PV Project).
"With this transaction, EDPR doubles its operational capacity in Vietnam, strengthening its presence in the APAC region, a market where it entered in 2021 and has been since reinforced with the integration of Sunseap in February 2022," stated EDPR.
The move comes at a time the Vietnamese solar market has collapsed. After it skyrocketed to a top 3 global solar intallation spot in 2020, installing around 12 GW due to a very generous feed-in tariff, the market dropped to 2 GW in 2021 and is expected to halve again in 2022.