vinacapital clean energy platform
TRANSCRIPT
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VINACAPITAL CLEAN ENERGY PLATFORM
Khoa Nguyen, Head of Energy and Infrastructure
5 November 2020
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Clean Energy in Vietnam
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Vietnam Energy Overview
Current Market & Outlook by Sub-Sector
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Vietnam Is The Fastest Growing Economy in SE Asia and Needs Significant Power Investment to Fuel Its Growth
3| Source: EVN, World Bank
130 143
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252 274
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140 158
176 190
212 230
250 267
286
2014 2015 2016 2017 2018 2019 2020 2021 2022
Energy Demand (TWh) Energy Supply (TWh)
It is estimated that the current power plan will require an investment of ~USD 150 billion by 2030.
(CAGR: 8.5%)(CAGR: 11%)Power Demand Gap
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Renewables Have Already Become Vietnam’s Lowest-cost Option to Meet Increased Demand of Energy (LCOE Basis)
4| Source: McKinsey
Tipping Point
Vietnam’s average LCOE1, $/megawatt-hour
1. Levelized cost of electricity. Calculated by averaging LCOE for good solar and wind locations in North and South. Fuel: coal (unsubsidized)import coal price (based on China); gas (unsubsidized), liquefied-natural-gas price. Capacity factors: coal 70%, gas 60%, solar 22%, wind 30-37%. WACC: solar/wind 7% (2017 onward), others 10%.2. Levelized cost of electricity for unsubsidized domestic gas is $50/MWh, assuming a constant gas price of $6/one million British thermal units and capacity factor of 60%.
3. Liquefied natural gas4. Onshore-wind capital expenditures converge from $1.5 watt in 2017 to $1.1/watt “should cost” in 2021 based on bottom-up assessment.
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Though Current Government, Power Development Plan Relies Heavily on Coal, The Actual Mix Expected to be Weighted More Towards Clean Energy*
5| Source: Vietnam Power Master Plan (ver. 7, revised)
* Many large coal projects have been delayed due to execution and financing issues; some are currently under consideration for conversion into LNG power plants
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48 55 9
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2020 2025 2030
Coal Gas Hydro Solar Wind Other Total
Energy Mix
Current Government Master Plan: Installed Capacity, GW
4GW of Solar already achieved in 2019!
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Clean Energy Has Huge Potential to Become The Best Option for Vietnam to Serve Its Future Energy Needs
6| Source: MoIT, EVN and McKinsey
Significant development potential for Vietnam renewables till 2030, studied by McKinsey, Vietnam Ministry of Industry & Trade and EVN
4.50.2
7.212
6
19
61
39 38Market Potential
Policy support
• G2G support for LNG import
• Tax incentives
• 20 years Feed-in Tariff (till Jun-19)
‒ Ground: 9.35c; After 7.09c (draft)
‒ Floating: After 7.69c (draft)
‒ Rooftop: 9.35c (draft)
• Tax incentives
• 20 years Feed-in Tariff (till Nov-21)
‒ Onshore: 8.5c
‒ Off-shore: 9.8c
• Tax incentives
Wind Gas-FiredSolar
Potential capacity (GW)Master plan 2030 (GW)Installed capacity (GW)
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About VinaCapital
Why VinaCapital
Team
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VinaCapital Has Developed, Invested in and Currently Manages over USD 1bn In Real Estate Investments
20182006
Vinaland Ltd.• Vietnam’s largest real estate closed-end-
fund, listed on London AIM• Total AUM over USD 600 million• Invested in over 50 projects in Vietnam
• USD 4 billion JV between VinaCapital and Gold Yield Enterprises Ltd, a JV between Suncity Group (Macau) and VMS Group
• Largest FDI project in Quang Nam Province• Phase 1 is set to open in early 2020, including a world-
class casino, 1,000 hotel rooms and a golf course
2015
• USD 300 mn JV hospitality property platform between VinaCapital and Warburg Pincus with 16 hotels/resorts across Vietnam & Cambodia
• Home-grown Fusion brand providing end-to-end solutions for hospitality project development
2016
2015• Currently invested in 12 projects across Vietnam• Special situation, joint venture & new platform
incubation PRINCIPAL
INVESTMENT
Extensive track record of direct development, investment and management of real estate properties across Vietnam
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Vinacapital Brings a Unique “Local Foreign Investor” Skillset That Can Catalyze Power Development
No Particulars Local Players VinaCapital International Players VinaCapital Advantages
1. Local access & expertise, incl regulatory
15+ years of local investing experience & deep networks, allowing significant deal origination and project licensing management capacity
2. Local leadershipWe are long-term focused only on Vietnam with strong access to high quality deals
3. Local execution track record
70+ Investment professionals investing across asset classes
4.Ability to attract & retain world class management team
Energy team has >100+ years of power & business building experience.
5. Financing strengthVinaCapital group has > USD 3.3 billion AUM invested in Vietnam.
6.Commitment to international standards (incl EHS)
Adherence to global standards in environment, health & safety
Why VinaCapital?
VinaCapital forms the perfect lynch-pin between local and international players; aligning ethos by bringing strengths in local executions and insights to the partnership
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Disclaimer
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Email: [email protected]
Website: www.vinacapital.com
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