Scatec ASA sells Dam Nai Wind Farm for 40 million USD

According to information from Scatec ASA, this Norwegian renewable energy group has signed an agreement to transfer the Dam Nai wind farm and its operating company in Vietnam to SARA (Sustainable Asia Renewable Assets), the utility-scale renewable energy platform of the SUSI Asia Energy Transformation Fund (SAETF).

Dam Nai Wind Power Farm in Tan Hai and Phuong Hai communes (Ninh Hai district) and Bac Son and Bac Phong communes (Thuan Bac district) of Ninh Thuan province, managed by Dam Nai Wind Power Joint Stock Company with a total capital of VND 1,523 billion. The project has a total capacity of 39.375 MW including 15 turbines of Siemens Gamesa, with an average annual electricity output of 120 million kWh.

Under the agreement, Scatec will receive an upfront payment of $27 million (about VND663 billion) for a 100% stake in the project. The transaction is expected to close in the first half of 2025, subject to regulatory approval. The company may also receive an additional payment of up to $13 million after certain conditions are met by May 2026.

As of the end of Q2/2024, the total interest-bearing net debt related to the Dam Nai wind farm is approximately USD 28 million, equivalent to a transaction enterprise value of up to USD 68 million, including the payment according to the provisional income.

Since its acquisition in 2021, the wind farm has also generated cash flows into equity of approximately $14 million for Scatec. For Scatec Group, the transaction is estimated to generate an accounting gain of approximately $8 million at closing.

Following the transaction, Scatec will exit all operations in Vietnam, resulting in exit costs, including capitalized development costs, of approximately USD 4.5 million, which will be recognized in the third quarter 2024 business results.

Dam Nai Wind Farm is SARA's first wind power project, marking an important milestone in its entry into Vietnam's growing utility-scale renewable energy market.

Previously, SUSI Asian Energy Transition Fund also invested in Asia Clean Capital Vietnam (ACCV) to develop industrial rooftop solar power projects.