RATCH Group increases renewable capacity in Vietnam with investment in hydroelectric plant
3 January 2024
RATCH Group Public Company Limited has taken a significant step towards its renewable energy goals by acquiring a 100% stake in the operational 30MW Minh Luong hydroelectric power plant located in Lao Cai province, Vietnam. The acquisition from Nam Tien Group was successfully completed on December 29, 2023, through NEXIF RATCH Energy Investment Pte. Ltd. (NREI), a 49% equity-owned joint venture valued at US$25 million, equivalent to THB 860 million.
The Minh Luong hydroelectric power plant, a run-of-river facility, commenced commercial operations in 2018, generating approximately 103.15GWh per year. Vietnam Electricity Authority has a 20-year power purchase agreement to buy the electricity produced by the plant.
Ms. Choosri Kietkajornkul, Chief Executive Officer of RATCH Group Public Company Limited, emphasized that this investment marked a significant stride in expanding the company's business footprint in Vietnam. NREI, a collaboration between RATCH Group and Nexif Energy, played a pivotal role, leveraging its experience and expertise in the power business within the ASEAN and Asia Pacific regions. The acquisition adds 14.7MW to the company's capacity, bringing the total renewable energy capacity to 2947.93MW, accounting for 27.24% of the total capacity.
Ms. Choosri outlined the broader strategy, stating: "RATCH Group is actively driving development and investment in Vietnam through NREI, which currently has a pipeline including a 12 MW under-construction hydroelectric power plant and five under-development solar and wind power projects with a combined capacity of around 520 MW. Upon successful completion of these pipeline projects, our renewable portfolio is poised to reach close to 30% of the total capacity, aligning with our 2030 goal."
Following the investment in the Minh Luong project, RATCH Group's committed capacity in Vietnam has risen to 266.19MW, comprising 136.71 MW from fossil fuel sources and 129.48MW from renewable sources.
