SP Group partners BCG Energy on solar project in Vietnam

SP Group (SP) and BCG Energy, a wholly-owned subsidiary of Bamboo Capital JSC, have formalised a joint venture (JV) to invest in rooftop solar and other renewable energy projects in Vietnam.

In a press statement on Monday, SP said that it will own 49 per cent of the JV, while the wholly-owned subsidiary of Bamboo Capital JSC will own 51 per cent.

The JV will have an initial target of 500 megawatts (MW) of rooftop projects by 2025, contributing to Vietnam's target of having 30 per cent of its electricity generated through renewable energy sources by 2030.

As part of the JV's first rooftop solar project, it will work with Vinamilk, Vietnam's largest dairy production company, to install a combined 25MW of rooftop solar power across nine factories and seven farms.

The installation will generate 35,000 megawatt-hour of clean electricity annually, enough to power approximately 20,000 households in Vietnam. It also amounts to a reduction of 32,000 tonnes of annual carbon emissions, equivalent to taking approximately 7,000 cars off the road.

The JV will also acquire 28MW of operational rooftop solar assets across eight commercial and industrial sites located in South and Central Vietnam.

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BCG Energy chief executive officer Tuan Pham noted that Vietnam completed and connected more than 100,000 rooftop systems to its grid and that there is strong growth potential in this market segment in Vietnam as it develops.

"We believe this will promote the use of clean energy in manufacturing companies and contribute to the sustainable growth of the economy," he said.

SP chief executive officer Stanley Huang noted that the partnership is a key milestone for SP as it steps into the Vietnamese market.

"Our combined expertise and ambition in renewable and sustainable energy solutions will offer customers more options and encourage their transition to clean energy sources," he said.

The announcement comes after both sides signed a memorandum of understanding (MOU) in May this year to invest in renewable energy projects in Vietnam. The MOU provided an exclusive right for SP to acquire up to 49 per cent of Skylar Joint Stock Company (Skylar), a subsidiary of BCG Energy which specialises in the development and deployment of solar assets.