Foxconn and Brookfield will jointly develop renewable energy projects in Vietnam
The partnership targets up to 1 GW of wind, solar and battery storage capacity
Projects are intended to support Foxconn’s manufacturing operations and supply chains
Taiwan-based Hon Hai Technology Group (Foxconn) and global investment firm Brookfield have teamed up to build up to 1 GW of renewable energy capacity in Vietnam.
Under the strategic partnership announced, both the companies plan to jointly develop up to 1 GW of utility-scale wind, solar and battery energy storage capacity,
aimed at supporting Foxconn’s operations and supply chain across the country. The Taiwanese company claims over 40% market share in electronics manufacturing services, and is a well-known supplier for brands such as Apple.
“We are pleased to be a strategic partner to Brookfield to secure long-term access to renewable energy for our operations and supply chain in Vietnam,” said FoxconnChief Investment Officer James Tu. “This initiative where we’re investing and managing alongside Brookfield ensures stable and cost-effective power supply for our continued growth in the region.”
The projects are expected to be backed by long-term power purchase agreements (PPAs), providing a stable source of clean electricity for industrial operations. Both the companies will collaborate on both investment and asset management activities.
According to Brookfield, the partnership reflects growing demand from corporates for reliable renewable energy supplies in Vietnam, backed by policy momentum in Southeast Asia.
“As global manufacturers increasingly turn to renewables for its cost-competitiveness, speed to market and energy security benefits, we’re seeing strong and rising demand for long-term supply from across the region,” stated Brookfield Asia Pacific Head of Energy Daniel Cheng.
The partnership is also expected to progress alongside Vietnam’s evolving direct PPA framework, which is designed to enable large electricity consumers to procure renewable power directly from project developers (see Vietnam Eases Renewable Energy Offtake).
Brookfield said it will deploy capital through its Catalytic Transition Fund, which focuses on renewable energy and transition projects in emerging markets. It is backed by $1 billion of catalytic capital from ALTÉRRA.