$1 billion to be spent on solar projects in Vietnam
Vietnamese sugar, energy, real estate and tourism conglomerate, TTC Group, plans to invest up to $1 billion in one of Vietnam’s largest portfolios of solar projects, in a bid to meet the nation’s growing power demand.
To address Vietnam’s growing power gap, the nation’s government has pledged to increase the country’s installed power capacity by 14 per cent each year from 2015 to 2030.
According to Bloomberg New Energy Finance (BNEF), Vietnam will need to invest $74 billion in energy sources – including wind and solar – by 2025, as power demand in the country doubles.
Thai Van Chuyen, Chief Executive Officer of TTC, said: “Solar energy is very hot right now as the recent pricing set by the government is reasonable, development costs are much cheaper and coal-fired power plants have caused so many concerns."
He went on to say: “Vietnam always needs more power every year for its expanding economy."
Mr Chuyen said the company – which is based in Ho Chi Minh City in the south of the country – is looking for investors for ten to twenty solar energy projects.
These projects are expected to be fully operational by next year, and will generate 1,000 megawatts (MW), Mr Chuyen said.
30 per cent of the funding required will be provided by TTC Group.
The company is in talks with banks and financial institutions for the balance of funds required for the solar energy parks.
TTC Group’s Gia Lai Electricity JSC unit will oversee the development of 800 MW of the solar projects, Chuyen said.
At present, the country relies heavily on hydropower for the majority of its renewable energy capacity.
Bloomberg said TTC’s interest in the development of solar energy marks Vietnam’s expansion into clean energy.
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