Modern Energy Management (MEM), a specialist in developing, building and operating investment grade renewable energy projects in emerging markets, is growing its influence as the lead wind energy development advisory firm in Vietnam, currently advising on over 1,100MW of wind projects.
Vietnam is currently the most active renewable energy market in ASEAN due to its current heavy reliance on coal and hydro power. Vietnam currently has 140MW in wind power operation. The Vietnamese government set a target of 6,000MW of wind power by 2030, but growth of installed capacity has slowed due to pricing of electricity generated by wind power and a PPA that is not generally considered suitable for international investors.
“Vietnam has a modest feed-in tariff, which means developers must be extraordinarily skilled in site selection and the development process to be successful. A market landscape like Vietnam allows no margin for error for investors,” cautioned Aaron Daniels, Managing Director of Modern Energy Management.
“We are now seeing a host of strategies by investors to deal with the issue of PPA bankability,” he continued. “As investors get creative, projects are clearly moving forward as a result.”
Modern Energy’s clients are very positive about their relationship with the company. One confidential investor noted that, “Vietnam is a tough market. The development expertise of MEM and their ability to enhance our returns as a result of their work was a key factor in our desire to work with them.”
“Modern Energy is more than a technical advisory firm,” affirmed Mr. Daniels. “In addition to a technical evaluation, we approach each project from commercial and financial perspectives with a keen eye to reduce risk and improve investor returns. Additionally, unlike a typical consultancy, MEM usually acts as the Owner’s Representative, delivering project leadership to these projects. We are unique in our ability to do this as our team has significant experience developing, building and operating wind projects in SE Asia.”
One area where MEM is gaining a strong reputation is for its expertise is in intertidal projects, representing investors on several projects in the Ben Tre, Tra Vinh, Soc Trang corridor. “Intertidal projects are quite complex and challenging as they present a unique risk profile,” stated Mr. Daniels. “To have the confidence of our clients as their Owner’s Representative really signifies our experience and expertise in intertidal wind projects in Vietnam.”
MEM manages wind and solar projects in the developing markets of South East and Central Asia, and Africa.