October 10, 2019 – Modern Energy Management (MEM), a specialist in developing, building and operating investment grade renewable energy projects in emerging markets, announced that it has been appointed by a confidential client to originate new wind projects in Vietnam.
According to a 2018 PwC report on “Renewable Energy in Asia-Pacific,” there is a potential of 250 billion USD earmarked for new investments in solar and wind utility-scale projects by 2025 in nine Asian markets, including Vietnam. MEM recognizes the importance of investment grade deal flow for the investor business case. Addressing this market constraint, MEM’s role includes originating investment grade project sites for its clients.
“Modern Energy is more than a technical advisory firm,” stated Aaron Daniels, Managing Director of Modern Energy Management. “We understand the investor’s business case requirements. Right now, one of the keys critical to renewable energy investor success is in sourcing investment grade projects. With this in mind, MEM developed our own inhouse process for site selection that includes a wealth of MEM Intellectual Property including our own country maps layered with wind and solar resources, and a country-specific financial model plug-in that we developed to validate investor equity returns. Our system allows us to find and evaluate project sites based on attractiveness of investor returns. This empowers the investor to make informed decisions that justify further evaluation and development of the project.”
The client noted that they were impressed with MEM’s sourcing package and also announced that they are now progressing with permits on a Vietnam project previously identified by MEM.
“One issue affecting Vietnam investors now is that the window to hit the FIT is closing,” continued Mr. Daniels, “meaning projects must be in commercial operation by November of 2021 to qualify for the current FIT regime. However, there is also pressure in Vietnam to deploy significant amounts of capital in renewables projects. MEM is addressing this market need by supporting investors to originate investment grade projects through our proprietary technology and understanding of these markets. While many engineers identify where resources are, no one in the market is layering the information like we do with our exclusive process to de-risk the site hunting process the way we do.”
MEM uses its proprietary model for other emerging markets including Philippines, Indonesia, Thailand, Myanmar, and Cambodia.
Vietnam is currently the most active renewable energy market in ASEAN due to its heavy reliance on coal and hydro power. MEM supports investors of projects in Vietnam with a current estimated capacity of over 1,300MW, of which over 250MW are wind projects.