AC Energy, with its partner The Blue Circle Pte. Ltd., has purchased a total of 8 new 5-megawatt (MW) wind turbines from General Electronic Co. (GE). These wind turbines will be used to power the second stage of the wind farm in Vietnam. The said wind farm is valued at $80-million. According to the company, these turbines are 158-meter Cypress platform types, which will have a combined capacity of 40 megawatts. These purchases will help them carry the biggest rotor diameter dedicate to an Asian onshore project. This will also be the first-ever turbines to carry blades in two pieces before it is constructed on the planned location.
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Both AC Energy and The Blue Circle think that the purchase of new wind turbines is a game-changer for its onshore sites. The goal of the wind turbines is to allow bigger capacity machines, which will then lower their cost of energy and improve their competitiveness in terms of wind energy. Last year, both companies signed an agreement to build the first stage of the renewable energy project. It was expected to be completed by the first half of 2020. In this project, AC Energy owns 62% economically with a 50% direct voting share.
The AC Energy Vietnam Investments 2 Pte. Ltd. is a wholly-owned subsidiary by AC Energy. Through this, it will have a 50% voting share in the upcoming second phase of the project. The GE Vietnam will then provide a full-service agreement for a maximum of 15 years and its partner, the Blue Circle, will manage the operations through its asset management services contract. The three of them will have a significant contribution to the construction of the project.
The location of the Mui Ne project is in Binh Thuan province, which is on the southeastern coast of the country. The total expansion potential of the location is 170 MW, which will be financed through equity and debt. The second phase project will be set to pass for the wind feed-in-tariff of 8.5 US cents per kilowatt-hour. According to the Blue Circle, it has already secured the land and grid connection for the second phase project although there have been suspensions in the master plan. It said that the location is complex and it’s going to be challenging for them to construct the wind power project. So, they are extending the completion to 2021.