Hanwha Group, the parent company of Hanwha Q Cells, has signed a joint operation investment agreement with a Vietnamese multi-disciplinary investment firm to build a 100 MW solar PV project in Vietnam.
Bamboo Capital Joint Stock Company (BCG) Bang Duong will arrange capital sourcing, secure permit and implementation rights, and will negotiate the power purchase contract for the solar energy generated at the plant, which will be located in Vietnam’s Thanh Hoa district in long An.
Hanwha Group, for its part, will provide all technology equipment and undertake the engineering, installation and international financing for the project. The total level of investment is $100 million, and the 125 hectare solar plant is scheduled to be commissioned in early 2019.
BCG Bang Duong estimates that Vietnam could theoretically install between 2-5 GW of residential and commercial solar PV capacity alone over the next decade, while the terrain could support at least 22 GW of ground-mounted solar, mostly in the sunny, less mountainous south.
Recent solar development activity in Vietnam has largely centered on its suitability as a manufacturing hub for Tier-1 Chinese firms, but there have been stirrings of a domestic market emerging.
Earlier this year the Vietnamese government introduced a 20-year FIT based on a reasonable rate of VND 2,086 ($0.09)/kWh, as well as a net metering scheme for residential rooftop solar. Early teething problems aside, these policies appear to have begun attracting foreign investment. In April, Tata Solar of India announced a 100 MW solar project in Binh Phuoc, while Vietnamese utility Electricity of Vietnam (EVN) has also unveiled plans to develop 350 MW of solar PV capacity.
TTC Group, which is a business conglomerate headquartered in Ho Chi Minh City, is also confident of installing 1 GW of solar capacity across the country over the next few years, provided it can secure the necessary capacity.
Hanwha Group’s involvement delivers yet more fresh foreign impetus into Vietnam’s fledgling solar sector, as noted by BCG board chairman, Nguyen Ho Nam: “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. We believe with the experience and technology in the field of renewable energy of Hanwha Group, the factory in Thanh Hoa, Long An, when put into operation, will contribute to increase the power supply for Vietnam, mitigate climate change, environmental protection and sustainable socio-economic development.”