Sembcorp Industries [SCI:SP], Singaporean energy and urban development company, signed an agreement with Bamboo Capital Group to jointly develop a 1.5 gigawatt (GW) renewable power project in Vietnam, as reported by PV Tech on December 10. The two groups sent their respective subsidiaries, Sembcorp Utilities and BCG Energy (BCGE), to sign the deal. During the first phase of the collaboration, the two entities will develop a 550 megawatts (MW) portfolio of utility-scale nearshore and onshore wind farms in the Ca Mau, Tra Vinh, and Soc Trang provinces, which are expected to come into operation by the end of next year.
Semborp’s CEO of Singapore and Southeast Asia, Koh Chiap Khiong, said Vietnam is a vital growth market in this area, and the company is planning to expand its renewables portfolio in this country. The Vietnam government in February 2021 published a draft of the latest national power development plan, Power Development Plan 8 (PDP 8), which proposed a 2030 energy mix including 19-20 GW of solar, 18-19 GW of wind, 22 GW of gas, and 37 GW of coal-fired power installation. That means an additional installed capacity comprising 20-35 MW of solar energy, 18GW of wind power, 21-22 GW of gas power, and 3 GW of coal-fired power. Notably, the country might demand more renewable energy than expected, as it is unlikely to obtain financing for its coal-fired power plants from major investors such as Japan, South Korea, and China. The above countries have successively announced they will halt their funding to overseas coal projects.