Project developer Modern Energy Management has announced it is to provide project management services for development of the intertidal Tra Vinh wind farm in Vietnam.
Project development company Modern Energy Management (MEM) has announced that it is to provide project management services for development of the intertidal Tra Vinh wind farm. Under the terms of the development co-operation agreement, MEM will supply a dedicated project manager to coordinate development at what will be one of Vietnam’s first commercial-scale wind farms. Once complete, the project is expected to have a total generating capacity of 144 MW. MEM will oversee the development of Phase 1 of the wind farm with a total capacity of 48MW.
“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” said Lars Lund, Director, Modern Energy Management. “To date, investors have struggled to overcome the relatively low FiT and high costs of capital. At Tra Vinh, Modern Energy Management supplied a dedicated project manager who will oversee the initial development, ensuring the project matures as planned enabling bankability.”
Nathan Schmidt, Head of Asia at Climate Fund Managers, added that Vietnam is one of the company's key markets, due to the government’s long-term commitment to clean energy and the strong renewable resources the country possesses. MEM’s knowledge of the Vietnamese market and understanding of the project dynamics will safeguard strong returns for Climate Fund Managers investors, as it seeks to accelerate the delivery of renewable energy projects in emerging markets to benefit local communities.
The Vietnamese government has committed to sourcing 10 percent of its electricity from renewable sources by 2030, faced by increasing demand for electricity. The country's strong economic growth has similarly contributed to making the country an attractive prospect for clean energy development. However, difficulties in achieving financial returns commensurate with the risk profile of projects located in the country, and questions regarding the bankability of Vietnam’s PPA offering, have deterred further investment in the country’s renewables sector.
By drawing on its unique Investment Grade Verification methodology, MEM expects the Tra Vinh wind farm to be the first to successfully resolve these issues.