ADB financing the rooftop solar power projects (for business part) in Vietnam
14:48 | 13/09/2023
The ADB loan will support the construction and operation of rooftop solar power systems for production and business facilities across the country. The financing package includes loan A type with $3 million from ADB's regular capital fund and parallel loans worth $10.8 million from Field Marketing Organizations (FMO), ResponsAbility Fund and Société Générale, arranged by ADB. A grant aid of USD 3 million will also be provided from the Climate Innovation and Development Fund (CIDF) managed by ADB. The aid will help attract the participation of an international commercial bank by addressing two important barriers to financing solar power projects with the long economic life cycles in Vietnam.
Ms. Suzanne Gaboury - Director of ADB's Private Sector Operations Department emphasized: "With the role of the Climate Finance Bank in Asia and the Pacific, ADB increasingly focuses on mobilizing private capitals to finance the renewable energy projects, that the region is very needing. The rooftop solar power projects are the effective solutions for Vietnam to realize significant additional renewable energy capacity to add and help attract and maintain the business activities as well as improve the global competitiveness of Vietnam".
The rooftop solar power is an upstate form of renewable energy supply in Vietnam. Applying this form in customer segments faces obstacles due to high investment costs and limited funding channels. With a total planned installed capacity of up to 32.3 MW, the project is expected to increase the clean energy supply for this segment and reduce carbon emissions by 15,530 tons by 2025.
Mr. Sebastien Prioux - CEO of Vietnam GreenYellow shared: “Our core business activity is a strong commitment to development impact and our partnership with ADB is especially aligned with our mission to deliver electricity in an innovative way and promote energy transition. ADB's important role in helping connect like-minded partners is integral to our shared journey to actively promote sustainable development”
CIDF is a combined finance fund managed by ADB, established in September 2021 with an initial charitable commitment of $25 million from Bloomberg Philanthropies and Goldman Sachs. CIDF has the potential to mobilize up to $500 million in investment capital from the private sector and governments to support sustainable low-carbon economic development.
Founded in 2007, GreenYellow is a French energy transition partner, specializing in decentralized solar power projects, the services to monitor storage and economize energy.
At present, the company has been operating across Asia, Africa, Europe, South America and Vietnam since 2019. GreenYellow is responsible for developing, financing and operating infrastructure projects, allowing its customers to produce green electricity on-site at competitive prices, reducing energy consumption and accelerating the decarbonization process.
Sourced by VNA