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.
Target of installing 500MW of rooftop solar systems by 2025
SP Group is a leading utilities group in the Asia Pacific, empowering the future of energy with low-carbon, smart energy solutions for its customers. As Singapore’s national grid operator, about 1.6 million industrial, commercial and residential customers. These networks are amongst the most reliable and cost-effective world-wide. It owns and operates electricity and gas transmission and distribution businesses in Singapore and Australia, and sustainable energy solutions in Singapore and China.
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.
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.
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.
Installing 25 MW of rooftop solar power at Vinamilk factories
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.
A rooftop solar system installed at a Vinamilk factory by the joint venture between BCG Energy and SP Group.
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.”
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.”
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.