SP Group enters Vietnam solar power market through joint venture with BCG Energy

August 02, 2021 - 10:00

SP Group and BCG Energy Joint Stock Company, a wholly owned subsidiary of Bamboo Capital JSC, on August 2 announced the formalisation of a joint venture to invest in rooftop solar and explore other renewable energy projects in Vietnam.

Nguyen Ho Nam, chairman of Bamboo Capital JSC, and Pham Minh Tuan, BCG Energy’s CEO, at the online signing ceremony to set up a joint venture for investing in rooftop solar and exploring other renewable energy sources in Vietnam with SP Group on July 30.

SINGAPORE, VIETNAM — SP Group and BCG Energy Joint Stock Company, a wholly owned subsidiary of Bamboo Capital JSC, on August 2 announced the formalisation of a joint venture to invest in rooftop solar and explore other renewable energy projects in Vietnam.

This partnership marks SP’s first joint venture in Vietnam.

The JV, 51 per cent owned by BCG Energy and 49 per cent by SP, combines the expertise of both companies for developing innovative, sustainable energy solutions aimed at accelerating Vietnam’s clean energy transformation.

With an initial target of installing 500MW of rooftop solar systems by 2025, the JV will support Vietnam’s green ambitions to become a carbon-neutral economy and increase the ratio of electricity produced from renewable sources to 30 per cent by 2030.

The JV also announced its first rooftop solar project with Vinamilk, Vietnam’s largest dairy company and among the world's top 50 by sales.

Under their agreement the JV will partner Vinamilk to install a combined 25 MW of rooftop solar across its nine factories and seven farms.

This will enable Vinamilk to generate 35,000 mWh (Megawatt-hour) of clean electricity annually, enough to power 8,140 four-room flats for a year in Singapore or 20,000 households in Vietnam.

It will also reduce annual carbon emissions by close to 32,000 tonnes, equivalent to taking approximately 7,000 cars off the road.

As part of the agreement, the JV will make an initial acquisition of 28 megawatts of operational rooftop solar assets across eight commercial and industrial sites in southern and central Vietnam.

BCG Energy CEO Pham Minh Tuan said: “In 2020 Vietnam successfully completed and connected more than 100,000 rooftop systems to the grid. There is strong growth potential in this market segment given Vietnam’s developmental needs. By establishing a joint venture, BCG Energy and SP will work to accelerate the implementation of up to 500MW of rooftop systems on industrial complexes and facilities in the next few years in Vietnam.

“We believe this will promote the use of clean energy in manufacturing companies and contribute to the sustainable growth of the economy.”

SP Group CEO Stanley Huang said: “This partnership with BCG Energy is a key milestone for SP to grow our sustainability footprint in Vietnam.

“Our combined expertise and ambition in renewable and sustainable energy solutions will offer customers more options and encourage their transition to clean energy sources.

“Our objective is to support Vietnam’s clean energy transformation and significantly contribute to the country’s decarbonisation targets.”

In November last year SP established its Vietnam office in HCM City. Leveraging its capabilities in sustainable energy and digital solutions, SP aims to create value-added solutions for its customers in Vietnam and establish its position as a leading sustainable energy solutions company in the Asia Pacific.

SP is a leading utilities group in the Asia Pacific that empowers the future of energy with low-carbon, smart energy solutions for its customers. It owns and operates electricity and gas transmission and distribution businesses in Singapore and Australia, and offers sustainable energy solutions in Singapore and China.

As Singapore’s national grid operator, some 1.6 million industrial, commercial and residential customers benefit from its world-class transmission, distribution and market support services.

These are among the most reliable and cost-efficient anywhere in the world.

A rooftop solar system installed at a Vinamilk factory by the joint venture between BCG Energy and SP Group.

Beyond traditional utilities, SP Group also provides a suite of sustainable and renewable energy solutions such as microgrids, cooling and heating systems for business districts and residential townships, solar energy solutions, electric vehicle fast charging and digital energy solutions for customers in Singapore and the region.

BCG Energy is the holding company for renewable energy assets for Bamboo Capital JSC, which is listed on the Ho Chi Minh Stock Exchange.

BCG Energy was founded in 2017 as a key pillar in BCG’s long-term growth strategy. Aligned with the Government’s directive for renewable power, it focuses on the development and operation of ground-mounted and rooftop solar assets in Vietnam.

As part of its strategy to achieve 2.0 GW of capacity by 2023, it also intends to diversify its portfolio into floating solar, wind power and LNG in future.