Two of southeast Asia’s leading renewable energy developers are to form a joint venture (JV) to develop a 168 MW solar PV plant in Vietnam.
Sunseap International, which is the global arm of Singapore clean energy company Sunseap Group, is to work alongside InfraCo Asia Development Pte (InfraCo Asia) – a fellow Singaporean infrastructure development and investment firm – on the project, which is penciled for completion in Vietnam’s Ninh Thuan province by June next year.
The JV will see Sunseap take a majority stake in the project, with InfraCo Asia joined as a minority partner by CMX RE Canada, which is an existing development partner of Sunseap. InfrCo Asia will provide funding for the development phase of the solar plant, which is expected to create more than 200 jobs at the site during construction, and a further 30 long-term jobs thereafter.
Vietnam’s government has earmarked solar PV as a future dominant energy source, and is targeting a cumulative solar capacity of 850 MW by 2020, and 12 GW by 2030. The Ninh Thuan project will be among the largest in the country once complete.
“We see huge potential for solar energy development in Vietnam and are excited to bring affordable and reliable clean energy to the country,” said Sunseap co-founder and director Lawrence Wu. “We hope that our solar power project will help to promote more green energy investments in Vietnam and in the Indo-China region.”
InfraCo Asia CEO Allard Nooy added that the Ninh Thuan project will help Vietnam take a decisive step away from its overreliance on coal to create a cleaner energy mix for the future.
“Projects like Ninh Thuan solar create a ‘demonstration effect’ that serves as a beacon for future development. InfraCo Asia is proud to serve as a clean energy pioneer in Vietnam and throughout the South and South East Asia regions,” Nooy said.
The plant’s proposed June 2019 deadline should see it secure the current FIT of 9.35 U.S. cents/kWh, which was set by the Vietnamese government last April and is eligible for solar installations connected to the grid by that date.