'New growth opportunity' | Acciona to buy into massive wind portfolio in Southeast Asia

Spain’s Acciona Energía has agreed a $34m deal to buy a near-50% stake in Singapore-based The Blue Circle, which has a massive wind energy portfolio in Southeast Asia.

The developer operates an installed capacity of 84MW in Vietnam and has more than 1.4GW in advanced development in the country. The Blue Circle’s total portfolio in the region – also encompassing projects in Thailand, the Philippines, Cambodia, Indonesia, Laos and Sri Lanka – amounts to 3.8GW.

“Following Acciona Energía’s investments in Australia, we are eager to join The Blue Circle to enter the renewable energy markets of Southeast Asia,” the Spanish group's chief executive Rafael Mateo said.

“This opens a new growth opportunity for us with an experienced leader in the region and I am excited by the synergies between The Blue Circle and Acciona Energía that this transaction will enable.”

The renewables unit of Spanish industrial conglomerate Acciona is currently developing the 923MW MacIntyre wind farm in Australia’s Queensland state, one of its largest projects Down Under.

The founding partner and chairman, Olivier Duguet, and other minority shareholders, will continue to hold a majority stake in The Blue Circle, and Duguet will continue in his role as CEO of the developer.

Acciona’s entry strengthens The Blue Circle’s access to financing to execute projects under development, thanks to the Spanish company's status as a global player. Acciona Energia already has an operational portfolio of 11.2GW in 16 countries and across five continents.

'Opportunity of a generation'

Modelling in a new report by Wärtsilä found that Southeast Asian countries could lower the levelised cost of electricity (LCOE) by more than 20%, when taking into account likely future carbon taxes, by reaching net-zero by mid-century.

“Southeast Asia is experiencing unprecedented fuel price increases and volatility, increasing year-on-year demand for power, plus massive exposure to intensifying extreme weather events due to climate change,” said Wärtsilä president Sushil Purohit.

“Amidst this existential uncertainty, our study is very clear: the opportunity of a generation is now in reach for Southeast Asia’s energy leaders.

“By creating renewable and scalable power systems the region can sustain future growth, jobs, and prosper in this new normal of fossil fuel volatility and emission constraints. “