Denham, Nexif acquire Vietnam hydro player

The investors are transacting via the Nexif Energy platform, which they set up in 2015 with $200 million for developing, financing, constructing and opportunistically acquiring conventional and renewable power generation assets in Southeast Asia. The platform has since expanded its remit to include the broader Asia Pacific region.

Song Giang holds two hydro projects using run-of-river technology, which exploits seasonal currents without the use of a reservoir. These include a 37-megawatt project that has been operational since December 2014 and a 12MW project currently under construction. Completion is scheduled for mid-2021. The company is expected to produce enough energy to power 74,000 households and offset 110,000 tonnes of carbon emissions annually.

The acquisition extends a substantial Vietnam portfolio for Nexif Energy, which acquired controlling positions in the 30MW Coc Can run-of-river project and its management company Viet Hydro in 2016 for an undisclosed sum. In late 2017, the platform obtained government approval to construct and operate an 80MW wind project south of Ho Chi Minh City. The project, known as Ben Tre, is expected to require a total investment of $160 million and be capable of powering some 50,000 homes when completed fully.

“Nexif Energy welcomes the opportunity to develop this project and contribute to Vietnam’s rapidly growing renewable energy sector,” Matthew Bartley, founder and co-CEO of Nexif Energy, said in a statement. “This is an important step forward in achieving Nexif Energy’s objective of establishing itself as a leading power generation developer and investor in Asia and Australia. We look forward to acquiring and developing more projects in Vietnam and rest of our target markets.”

Nexif says electricity demand in Vietnam is growing 10-12% annually. Much of this is expected to be met by the country’s growing renewables sector, which is leveraging regulatory inducements on the back of public pressure to minimize coal imports. Vietnam has historically been an energy-efficient country with no imports required and 99% of the population grid-connected. Rising levels of affluence have disrupted the supply-demand balance, however, forcing a number of concessions for clean energy development.

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• Topics
• Southeast Asia
• Infrastructure
• Buyouts
• Vietnam
• Denham Capital
• energy