Singaporean utility company SP Group has signed a memorandum of understanding with BCG Energy, a holding subsidiary of Vietnamese investor Bamboo Capital, to support the development of new renewable energy projects in the country.
As part of the deal, SP will be able to acquire a 49% stake in BCG Energy’s subsidiary, Skylar Joint Stock Company, which has a rooftop solar portfolio across the country totalling 61.1MWp capacity.
The news comes two weeks after SP Group signed a joint venture deal with China’s Jinko Power Technology to acquire 102MWp of rooftop solar assets and bolster its renewable portfolio in the country. SP will own a 60% stake in the newly formed entity.
SP’s chief executive Stanley Huang said that Vietnam is a “key strategic market” for the company, and the partnership will provide a stronger platform for both the utility and investor to fund new projects there.
The two companies will also invest in future solar power projects in the country, which has been singled out as a fast emerging market in the renewables sector. Developers installed 9GW of solar across Vietnam in 2020, with deployments surging towards the end of the year. More than 6.7GW of solar capacity was installed in December 2020 alone.
Tuan Pham, BCG Energy’s chief executive, said that the company aims to develop 1.5GW of solar capacity by 2023, and 500MW of commercial and industrial solar installations in order to become “one of the market leaders in renewable energy in Vietnam and Asia.”