Mainstream Renewable Power secures investment decision from Provincial Government for flagship offshore wind project in Vietnam
– The 1.4 GW Phu Cuong Soc Trang offshore wind project, being developed as a joint venture between Mainstream Renewable Power and the Phu Cuong Group, is located off the southern coast of Vietnam and will be the largest offshore wind farm in South-East Asia
– The first 200 MW of the project has received a Decision on Investment and an Investment Registration Certificate (IRC) from the Soc Trang Province, representing a significant step towards financial close, expected in 2022
DUBLIN, Nov. 12, 2021 /PRNewswire/ — In a vital step for the Phu Cuong Soc Trang Offshore Wind Farm, Mainstream Renewable Power (“Mainstream”) today announces its receipt of a Decision on Investment and an Investment Registration Certification (IRC) from the provincial government of Soc Trang for the first 200 MW of the offshore wind farm. The project, once fully complete, will have a capacity of up to 1.4 GW and will generate enough electricity to power over 1.6 million homes, as well as mitigating 1.8 million tonnes of carbon dioxide emissions each year.
The project is anticipated to reach financial close in 2022, enabling first power to commence as early as 2023.
The wind farm is a joint venture between Mainstream and its Vietnamese partner the Phu Cuong Group, with Mainstream owning 70% of the asset and the Phu Cuong Group owning the remaining 30%.
The project follows a multi-stage development approach, with 200 MW of capacity set to be delivered in phase 1 and the remaining 1,200MW to be developed thereafter. Today’s announcement represents a significant milestone for Mainstream’s presence in Vietnam. The project has already completed its wind measurement campaign and other site studies, and the procurement process to secure a wind turbine supplier and balance of plant contractor is well advanced.
Moving forward, Mainstream will work closely with EVN, Vietnam’s national electricity company, to finalise the grid connection agreement, as well as the project’s Power Purchase Agreement (PPA).
Mainstream has been present in Vietnam since 2016 where it is developing 2.3 GW of solar and offshore wind assets.
Cameron Smith, Mainstream’s General Manager for APAC, said:
“We are excited to be a part of Vietnam’s energy transition with the Phu Cuong Soc Trang project, which is being developed to the highest international standards, drawing on Mainstream’s extensive experience. Being leaders in renewable development in many countries, we understand the importance of community engagement, and we are pleased to have had such positive support from the Soc Trang community.
“We commend the government for the progress made in encouraging the development of renewable energy in Vietnam to date. The Phu Cuong Soc Trang project promises to be a catalyst for the development of a true offshore wind industry of a scale that will promote the achievement of net zero by 2050.”
Mr Nguyen Viet Cuong, Chairman of the Phu Cuong Group, said:
“The Phu Cuong Soc Trang offshore wind farm is an essential investment in Vietnam’s clean energy infrastructure and will make a major contribution towards the country’s carbon neutrality roadmap. This wind farm, which will be the largest in the region, will play a key role in accelerating the development of Vietnam’s economy by promoting the growth of industrialization. The government’s supportive policies to promote renewable energy are important for promoting foreign direct investment in co-operation with Vietnamese partners.”
Emmet Curley, Head of Communications & Positioning
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Caroline Cutler | Ojasvi Goel, FTI Consulting
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About Mainstream Renewable Power
Mainstream Renewable Power is a leading pure-play renewable energy company with a global footprint. The company is focused on expanding its high-quality pipeline of more than 16.2 Gigawatts (GW) of wind and solar assets across Latin America, Africa, Asia Pacific as well as the global offshore wind sector. In May 2021, it closed an agreement for Aker Horizons to take a 75% equity stake in the company, enabling Mainstream to accelerate its global expansion plan.
Mainstream has delivered more than 6.5 GW of wind and solar assets to financial close-ready, and currently has over 1.4 GW (net) in construction across Latin America and Africa. In Chile, Mainstream’s wholly-owned 1.35 GW “Andes Renovables Platform” of fully contracted wind and solar assets are on track to complete construction from later this year. In South Africa, the company has delivered 850 MW of wind and solar assets into commercial operation, and in October 2021, twelve of its wind and solar projects won preferred bidder status in Round 5 of South Africa’s Renewable Energy Procurement Programme. Through its Lekela Power joint venture the company has 410 MW of wind assets in construction in Senegal and Egypt.
Mainstream is one of the most successful pure-play developers of offshore wind at scale globally. It has successfully consented Hornsea One (1.2 GW), the largest operational offshore wind plant in the world today; and developed the Hornsea 2 project (1.4 GW) before selling these projects and the entire Zone in 2015. Overall, it has developed and consented 20% of the UK’s offshore wind capacity either in operation or under construction. Mainstream fully consented the Neart na Gaoithe offshore wind project in Scotland, 450 MW, currently under construction. The company’s Soc Trang 1.4 GW offshore wind development in Vietnam is one of South-East Asia’s largest renewable energy developments.
Mainstream has raised more than EUR3.0bn in project finance to date and employs more than 420 staff across five continents.
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