AC Energy, the energy sector business arm of the Philippines’ largest conglomerate Ayala Group, is investing in Vietnam’s solar power industry through a partnership with Vietnam-headquartered BIM Group.
In a disclosure to the Philippine Stock Exchange on Wednesday, Ayala Corporation said it has agreed with BIM Group, a diversified corporation in Vietnam, to jointly develop over 300 megawatts (MW) of solar power projects in Vietnam’s Ninh Thuan province.
The initial phase of the solar project broke ground last Tuesday, with the investment for this phase expected to reach Vnd800 billion ($35.2 million). The initial phase is set to be completed within the year.
“AC Energy is very keen to participate in the fast-growing Vietnam power sector, with pioneering investments in renewable energy,” said AC Energy CEO Eric Francia.
Conergy Asia & ME, one of Southeast Asia’s largest downstream solar companies, has been picked as construction partner for the solar plant that covers nearly 400,000 square meters.
The plant’s construction is set to commence in April 2018 and is scheduled to be connected to Vietnam’s power grid in December of 2018.
Ninh Thuan is Vietnam’s most arid province, making it a strategic location for solar farm developments, Conergy said in a separate statement.
AC Energy has partnered with Conergy on solar farms in the Philippines, and executives said they were very encouraged by the policy environment in Vietnam, and the potential for future solar developments.
The Ninh Thuan solar farm is expected to generate 50,464 MWh of clean electricity per year and save approximately 21,629 tons of carbon dioxide (CO2) emissions.
The Vietnam solar project is part of AC Energy’s overall goal of expanding beyond the Philippines and growing its presence in Southeast Asian markets.
With more than $1 billion of invested and committed capital, the company is positioned to exceed 2,000 MW of attributable generation capacity and scale up its renewable energy portfolio to over 1,000 MW by 2020.