GE Renewable Energy, Mainstream Renewable Power and the Phu Cuong Group have formalized a $2bn joint development agreement for an 800MW wind farm in Vietnam.

The project, which will be located in the Soc Trang province, is expected to be Vietnam's biggest wind farm.

It will be built in two phases, with the first 200MW part anticipated to reach financial close next year.

GE Renewable Energy will provide the required equipment for both phases.

Mainstream said the deal marks the next phase of the partnership on the project announced in November last year that is being developed with local partner Phu Cuong Group.

The project is in line the 1GW initiative that GE and the Ministry of Industry and Trade signed in May 2016.

Vietnam is planning to generate over 10% of its power from renewable energy by 2030.

Mainstream said the agreement takes centre stage at its focus in bringing large-scale, low-cost renewable energy to high-growth markets in Asia, Africa as well as Central and South America.

Mainstream COO Andy Kinsella said “This is a significant step forward in terms of taking the first phase of this project into construction next year, and in doing so supporting Vietnam in its aim of delivering one gigawatt of renewable energy by 2020.”

"This agreement in Vietnam marks Mainstream’s first large scale investments in Asia, following the establishment of gigawatt-scale portfolios in South America and Africa.

GE ASEAN President and CEO Wouter Van Wersch said: “This next step in the project further strengthens the collaboration between our three companies and reinforces our shared commitment to using technology innovation to support Vietnam’s renewable energy goals."

Phu Cuong Group, deputy general manager Ph?m Qu?c Anh said: “Producing electricity from wind energy is a new market in Vietnam. As one of the pioneers, Phu Cuong Group wants to work with strong partners with capacity to ensure the quality of the project.

“GE and Mainstream are the best partners in this area. We are confident that this collaboration will bring success to the project, contributing to the development of green power to the people of Vietnam.”

Image: Executives from the three companies sign agreement for the project. Photo: Courtesy of Mainstream Renewable Power.