Emerging market specialist provides asset management services during Scatec acquisition and integration
Ho Chi Minh City, 25 August 2021 – Modern Energy Management (MEM), a specialist in developing, constructing and operating investment grade renewable energy projects in emerging markets, announced that it is engaged to provide operation asset management support to optimize operations and revenue for the 39.375MW Dam Nai wind project for Scatec.
Scatec acquired the Dam Nai operational wind farm on 27 January 2021. Dam Nai is the first wind project acquired by Scatec and MEM provided the original acquisition due diligence, making it a natural progression for Scatec to continue the relationship to assist with the operating of the wind farm. MEM has continued to provide support and expertise to optimize wind farm production and revenues throughout 2021.
“Our role at the Dam Nai wind farm is a continuation and expansion of the original support we’d been engaged to perform for this project,” stated Aaron Daniels, Managing Director of Modern Energy Management. “After performing a gap analysis of current business operations of the wind farm based on the new acquisition, MEM will implement standard operating procedures to enhance the project’s operational cash flow. This ties into MEM’s viewpoint that, as the owner’s representative, our goal is to add value to the investment business case in everything we do for our clients.”
Due to the intermittent nature of wind energy coupled with the pronounced seasonality of wind in Southeast Asia, especially after the monsoon seasons, cash flows are very dependent on strong management of wind farm plants.
“A lack of installed capacity has been a challenge for the development of skilled plant operations teams at the site level,” continued Mr. Daniels. “MEM’s approach is to transfer skills via direct training and implementation of operations management procedures by extremely experienced international experts. This results in a cost effective and sustainable asset management program at the site level.”
Power demand continues to grow in Vietnam, where it is expected to double between 2020 and 2030. With the current Feed-in-Tariff (FiT) scheduled to gradually decrease after November 2021, Vietnam raised its wind power installed capacity target to have 11GW of wind installed by 2030. Currently, only about 10% of its current energy is supplied by renewable sources.