Singapore-based energy company Sembcorp Industries has signed a collaboration agreement with Bamboo Capital Group (BCG) for the development of 1.5GW of renewable projects in Vietnam.
Signed through subsidiaries Sembcorp Utilities and BCG Energy (BCGE), the agreement will see the companies “leverage each other’s strengths and resources” to identify and jointly develop a pipeline of up to 1.5GW of solar and wind projects in Vietnam.
Vietnam has prioritised the development of renewable energy sources in its eighth national power development plan (PDP VIII). The draft PDP VIII includes increasing the country’s solar and wind capacity to about 21.4GW and 12.5GW by 2030, respectively.
The first phase of the collaboration will involve an initial funding of US$30 million for the development of a 550MW portfolio of utility-scale wind assets across three provinces in Vietnam, which are expected to come online by end of 2022.
“Vietnam is a key growth market for Sembcorp in this region as we transform our portfolio from brown to green,” said Koh Chiap Khiong, Sembcorp Industries CEO of Singapore and Southeast Asia.
“BCG Energy is an established and strong local developer in both wind and solar projects, and we’re pleased to partner them to bring in our next wave of investment in renewables to Vietnam.”
In July, A 60MW floating solar project built by Sembcorp on a reservoir in Singapore was connected to the grid and went into commercial operation.
The signing of the agreement is not expected to have a material impact on the earnings per share and net asset value per share of Sembcorp Industries for the financial year ending 31 December 2021, Sembcorp said in a media release.