ADB and DHD sign $37m loan agreement for Southeast Asia's floating PV solar project

Wednesday, Oct 02, 2019 14:58

DHD’s general director Le Van Quang and Christopher Thieme from ADB after the signing agreement. — Photo courtesy of ADB

The Asian Development Bank (ADB) and Da Nhim – Ham Thuan – Da Mi Hydro Power Joint Stock Company (DHD) on Wednesday signed a US$37 loan agreement to finance the installation of a 47.5MWp floating photovoltaic (PV) solar power facility.

The system, situated on the man-made reservoir of DHD’s existing 175MW Da Mi hydropower plant, is the first large-scale installation of floating solar PV panels in Viet Nam and in Southeast Asia.

“This project will help boost the share of renewable energy in Viet Nam’s overall energy mix and decrease the dependence on imported fossil fuels such as coal,” said Christopher Thieme, deputy general director of ADB Private Sector Operations Department.

“The pairing of these two clean energy technologies – hydropower and solar – is a simple but highly innovative achievement which can be replicated elsewhere in Viet Nam and across Asia and Pacific.”

DHD, a subsidiary of the Vietnam Electricity Power Generation Corp 1, currently owns and operates four hydropower plants with total generation capacity of 642.5MW, about 17 per cent of Viet Nam’s total generation capacity.

Le Van Quang, DHD’s general director, said hydropower reservoirs in southern Viet Nam have vast solar power potential. Both sides have worked together to catalyse a new source of power for the country, contributing to energy security, environmental protection and sustainable socio-economic development.

The financing package includes $17.6 million loan from ADB’s ordinary capital source, $15 million of blended concessional co-financing provided by the Canadian Climate Fund for the Private Sector in Asia and $4.4 million parallel loan from the Leading Asia’s Private Infrastructure Fund (LEAP) of Japan International Cooperation Agency. VNS

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