August 13 (Renewables Now) - The board of directors of Thai company B.Grimm Power PCL (SET:BGRIM) on Friday approved investments in a 257-MW solar project in Vietnam and in 70 MW of rooftop solar capacity.
In both cases the equity internal rate of return (EIRR) shall be above 12%.
The company will buy an 80% stake in the Vietnamese project, located in Phu Yen Province, from Truong Thanh Viet Nam Group JSC (TTVN) for about USD 35.2 million (EUR 30.8m). B.Grimm said the investment is under a 20-year power purchase agreement (PPA) for 214.16 MW with Electricity of Vietnam (EVN).
The company will be conducting a final legal, accounting and financial due diligence, and it is yet to sign the material agreements related to the deal. This investment announcement comes roughly a month after B.Grimm said it has agreed to take a stake in a 420-MW solar project in Vietnam.
Separately, B.Grimm is to invest in 70 MW of rooftop solar projects. For the purpose it will establish a subsidiary in which it will hold 100% and two joint ventures (JVs) with S.Napa (Thailand) Co Ltd and Spectrum Power Co Ltd, in which B.Grimm’s stake will be 90% and 70%, respectively.