Japanese power generator JERA has announced it will acquire 35.1% equity interest in Vietnamese renewable energy company Gia Lai Electricity Joint Stock Company (GEC) with its close to 600 MW portfolio, including projects under construction.

JERA will acquire this stake by purchasing all the equity interests of the International Finance Corporation (IFC) and Armstrong SE Asia Clean Energy Fund. The deal is subject to regulatory approvals.

As per its business model, GEC owns and operates mainly hydro, solar, and wind power projects and is listed on the Ho Chi Minh City Stock Exchange. It is an affiliate of the TTC Group (see TTC Group Switches On 49 MW PV Plant In Vietnam).

The Vietnamese company targets to grow its power generation assets in the country to 1.7 GW by 2025 with mainly solar and wind power projects. With the Japanese company as one of its investors, GEC expects to be able to expand its share of renewables in the country.

For JERA, the acquisition will strengthen its presence in an ‘important market’ in ASEAN and supports its new corporate vision for 2035 under which it aims to scale up its clean energy platform of renewables while lowering thermal power in Asia and around the world.

In Vietnam, JERA sees potential to expand the use of LNG as well as renewables. “To this end, JERA also announced earlier this year the start of the full-scale operations of its Vietnam subsidiary, JERA Energy Vietnam Co., Ltd., to serve as its base of operations in the country,” stated the Japanese company. “Additionally, JERA is continuing to work on reducing carbon emissions from thermal power generation through the promotion of hydrogen and ammonia co-firing.  Given Vietnam’s abundant renewable capacity, these greener fuels are also expected to play a significant role in Vietnam’s decarbonization story.”

In February 2022, JERA signed an agreement with West Holdings Corporation to develop a minimum of 1 GW of solar power capacity in Japan over the next 5 years as it targets to achieve zero CO2 emissions by 2050 (see New Alliance For 1.1 GW Solar In Japan).

Vietnam seems to be hot among big players in the renewables field these days. The JERA investment follows on London, UK based global investor Actis announcement to expand in the renewables market of Vietnam with the acquisition of the majority stake in Levanta Renewables that’s currently into onshore wind but has plans to execute solar projects as well in the future (see Actis Takes Majority Stake In Vietnamese RE Firm).

In early August, industrial properties rental service provider KCN Vietnam has announced a memorandum of understanding (MoU) with France’s TotalEnergies to have all of its industrial properties in Vietnam to be fitted with rooftop solar panels, representing a total capacity of 45 MW DC (see TotalEnergies & KCN Vietnam Enter Partnership). The renewable energy arm of Italy’s Enel, Enel Green Power (EGP) says its Vietnamese subsidiary has accumulated 5.692 GW of renewable energy pipeline comprising 915 MW capacity at an advanced stage and targets to commission its maiden utility scale plant here by 2024 (see Enel Green Power Expands To Vietnam).