Shares of Thai power producers with investments in Vietnam extended the decline on Tuesday after tumbling on the previous session following the report of Vietnam Electricity (EVN) slashing the agreed purchase rates for renewable energy in existing Power Purchase Agreements (PPAs) from 9.35 US cents to around 7 US cents per kilowatt-hour.
As of 10:12 local time in Bangkok on May 27, 2025, Gulf Development Public Company Limited (SET: GULF) fell 1.06% to THB 46.50 per share. Meanwhile, B.Grimm Power Public Company Limited (SET: BGRIM) lost 4.46% to trade at THB 9.65 per share and Gunkul Engineering Public Company Limited (SET: GUNKUL) slipped 1.19% to THB 1.66 per share.
Ms. Yupapin Wangviwat, Deputy CEO and CFO of GULF, told Kaohoon that the direct financial impact on GULF from EVN’s move to cut prices for solar and wind power is minimal compared to the company’s overall portfolio. GULF’s investments in Vietnam account for less than 1% of its total profit. Currently, GULF owns two solar farms, GTN1 and GTN2, in Tay Ninh Province, Vietnam, with combined capacity of approximately 120 megawatts.
“The contribution from Vietnam is less than 1% of GULF’s overall profit, so the impact is very small,” Ms. Yupapin said.
Meanwhile, Ms. Siriwong Borvornboonrutai, Co-President – Finance and Accounting of BGRIM, stated that while EVN’s proposed rate cut for renewable power is now widely reported, the company has not yet received formal written notice from authorities. Nevertheless, BGRIM and other power producers plan to submit a request for discussions with the Vietnamese authorities.
BGRIM currently operates two solar power projects in Vietnam: the 240 MW ground-mounted Solar Farm DAU TIENG and the 257 MW Phu Yen TTP Solar Power Plant, both already operational.
Ms. Naruechon Dhumrongpiyawut, CEO of GUNKUL, said none of the company’s four solar power projects in Vietnam, totaling 160 MW, are affected by the new rate as their Commercial Operation Dates (COD) were already achieved.
“We expect constructive outcomes after industry discussions with EVN. So far, our projects remain unaffected, and our cash flows continue as normal,” Ms. Naruchon said.
A source from a Thai power operator added that the Vietnamese Deputy Prime Minister previously instructed EVN that retroactively altering purchase rates in existing PPAs is impermissible. EVN was ordered to consult directly with power producers to find a joint resolution.
Industry participants are cautiously optimistic the situation will soon improve. There are signals of a positive outcome after negotiations, as unresolved tariffs could seriously dent investor confidence. In recent years, Vietnam has aggressively promoted both domestic and foreign private-sector investment in renewable energy to support its rapid economic growth, especially in solar and wind projects, offering long-term 20-year Feed-in Tariff (FiT) contracts at attractive rates.
Analysts at Bualuang Securities expect the impact on listed Thai power producers GULF, BGRIM, and GUNKUL to be limited due to the relatively small capacity of their Vietnamese renewable assets compared to their sizeable domestic and overseas portfolios. For instance, GULF’s Vietnam exposure is only 120 MW versus the company’s total generation portfolio of over 20,000 MW.
