Vietnam-based infrastructure investment firm BCG Băng Dương and Korea’s Hanwha Group have partnered to develop and build a 100MW solar PV project in Thanh Hoa district, Long An, Vietnam.
Under a US$100 million investment agreement, BCG will arrange financing and carry out much of the development including establishing permits, implementing the projects, and signing PPA’s with Vietnam’s monopoly utility EVN. On the other side, Hanwha will supply solar equipment, provide EPC services and also arrange international financing.
The project will be located across 125 hectares and is scheduled for completion in Q1 2018 to start generating power in 2019.
Nguyen Ho Nam, chairman of BCG Board of Directors, and representative of BCG joint operation, said: “To assess the importance, advantages and benefits of renewable energy sources in response to the increasing demand for electricity, BCG has chosen to promote investment in renewable energy projects for the long-term development strategy of the company.”
The solar industry’s interest in Vietnam surged after the Ministry of Industry and Trade (MoIT) announced a solar feed-in tariff (FiT) and a draft solar PPA earlier this year. However, a large range of international Chambers of Commerce have warned MOIT that the PPA structure as it stands is “non-bankable”, with major law firm Baker McKenzie also expressing concern about the policy.
Developer interest has not necessarily receded however, with Ho Chi Minh City-based conglomerate TTC Group also recently announcing plans to spend up to US$1 billion on 10 to 20 solar parks in Vietnam with a combined capacity of around 1GW.