Ireland based renewable energy developer Mainstream Renewable Power has forayed into the solar energy market of Vietnam where it is already developing offshore wind energy projects with 1.9 MW capacity.
It has acquired a 80% stake in Technology and Development Joint Stock Company Limited (D&T) that has a 405 MW of solar power project portfolio in Central Vietnam's Dak Nong province in the development stage. According to Mainstream, the 3-project portfolio is included in the government's Power Development Plan VII (PDP VII), also referred to as PDP 7.
All 3 projects are being developed since 2019 and are expected to achieve financial closure in 2022. "This deal further bolsters our position in Vietnam, which is internationally recognized as one of the countries leading the way in solar energy deployment in this region," said Mainstream Renewable Power's APAC region General Manager, Cameron Smith.
In February 2021, the Vietnamese Ministry of Trade and Industry (MOIT) released a draft of its PDP VIII that will replace PDP VII, covering the period between 2021 and 2030. Under the draft PDP VIII, Vietnam sees potential for the country to increase its total solar power capacity, including rooftop solar, to 18.6 GW under its Base Load Scenario by 2030, and increasing to 20.14 GW under the High Load Scenario. The draft also offers a visibility into 2045 showing the total installed solar power capacity has the potential to grow to 55.09 GW.
If and when adopted, this would mean a negligible increase from 16.6 GW solar capacity installed in the country till the end of 2020, as reported by various media and legal outlets focused on the country. This target is also in stark contrast to Vietnam's vibrant solar industry. Vietnam was the third largest solar market in 2020 after it installed a two-digit capacity last year, of which 9.5 were rooftop systems (see Vietnam: Rooftop Solar Installed Capacity Exceeds 9.5 GW).
In any case, as Vietnam aims to lower its reliance on coal, hydropower and natural gas resources in its power supply, renewables stand to gain which is attracting more international companies as Mainstream Renewable Power to invest. Recently, EDP Renewables announced its entry into the Vietnamese solar market with the acquisition of an operational solar power plant from Trina Solar (see EDP Renewables Entering Vietnam With 28 MW PV Project).