Vietnamese electricity company Gia Lai Electricity JSC has signed a 5 billion yen ($47.4 million) deal with Japanese engineering company JGC to design and build a mega-solar power generation.
According to the latest announcement from JGC, the solar power plant has a capacity of a 49-MW, to be set up in Krong Pa district in southern Gia Lai Province by this November. Once operational, it would be the largest such facility in the country.
Vietnam, which mainly relies on coal and hydroelectric power generation, has recently put emphasis on renewable energy development.
The Vietnamese government has offered a lot of incentives for investors by raising its buying price from 7.8 to 9.35 cents/kWh, while offering investors tax breaks and reducing land use fees.
Meanwhile, it canceled several nuclear power projects in November 2016 due to the hefty up-front costs of several billion dollars for each reactor that makes renewable energy more preferred than ever.
Sunseap International, the international arm of Singapore’s leading clean energy provider Sunseap Group last month, signed an agreement with InfraCo Asia Development Pte Ltd (InfraCo Asia) to jointly develop a 168 MWp utility-scale solar power project in Vietnam. The project is expected to reach commercial operation by June 2019.
Thailand’s largest solar energy company, Superblock Pcl on February 9 announced that it plans to invest 56 billion baht ($1.76 billion) to install 700 MW of wind farms in the country.
Meanwhile, AC Energy, the energy sector business arm of the Philippines’ largest conglomerate Ayala Group, also announced it is investing in Vietnam’s solar power industry through a partnership with Vietnam-headquartered BIM Group to jointly develop over 300 megawatts (MW) of solar power projects in Vietnam’s Ninh Thuan province.
JGC is known as a leading constructor of mega-solar power generation plants. It has been involved in construction projects for two large-scale oil refineries in Vietnam.
JGC Vietnam, which was established in 2009, has built up expertise in implementing projects in Vietnam, such as the execution of several small and medium-sized projects including industrial plants.