VietNamNet Bridge - In the last couple of weeks, several solar power projects capitalized at trillions of dong have kicked off.

Investors run a race to develop solar power projects

The investors include Vietnamese and foreign real estate developers, sugar producers, and enterprises from other business fields. 

Bamboo Capital (BCG), a realtor, is developing a project covering an area of tens of hectares in Long An province. 

Thanh Thanh Cong, a sugar corporation, and Gelex have started Gelex Ninh Thuan Solar Farm after finishing negotiations with the Electricity of Vietnam (EVN). Even Ca Tam Vietnam, a sturgeon processor, has also voiced its willingness to invest in the VND1.2 trillion solar power project in Ninh Thuan province.

Sources said the number of projects awaiting approval has soared from tens to hundreds. The total capacity of the projects is estimated to reach 12,000 MW. 

BIM Group plans to use 2,300 hectares of land to develop a 1,000 MW solar power project. In the first phase, a 40 MW plant would be built in 2017-2018, while the other two plants with the total capacity of 350 MW would be developed in 2018-2019 and the remaining 500 MW to be implemented after 2019.

Thanh Thanh Cong Group in mid-2017 announced the budget of $1 billion to develop 20 solar power plants in Vietnam with the total capacity of 1,000 MW. Some of the projects kicked off in the fourth quarter of 2017, while it has just started the project in Ninh Thuan.

Bamboo Capital has decided to join forces with South Korean Hanwha, Hong Kong’s Unisun Energy and German Coara Solar to build two plants in Long An with the total capacity of 140 MW. 

At the same time, the investor is seeking permission to develop some projects in Gia Lai, with the capacity of 400 MW in total.

EVN and its subsidiaries are following necessary steps to develop 23 projects with the total capacity of 3,100 MW. Of these, the EVN holding company has defined the place and planned four projects (575 MW) and it is considering two others.

Foreign investors have also been flocking to Vietnam as they can see great opportunities in the unexploited market. USAID has signed an agreement on supporting the development of Tinh Bien Plant, 210 MW, capitalized at $193 million.

Prior to that, Japanese Fujiwara got an investment license from the Binh Dinh provincial authorities on its 100 MW $64 million project, while SY Group from South Korea announced the implementation of the 300 MW $450 million plant in Bac Lieu.

Analysts noted that solar power began booming in April 2017, when PM released a decision stipulating that EVN must buy all the electricity output from solar power plants at 9.35 cent per kwh, or VND2,086.

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Nam Mai