Construction site of Loi Hai 2 wind power project in Ninh Thuan Province. — Photo courtesy of IFC
The International Finance Corporation is funding the development and construction of two wind power projects in central Viet Nam to support the country’s transition to cleaner low-carbon power generation.
The member of the World Bank Group IFC is providing a financing package of US$57 million to Thuan Binh Wind Power Joint Stock Company (TBW), a subsidiary of Refrigeration Electrical Engineering Corporation (REE). This will enable the construction of two onshore wind power plants — Phu Lac 2 in Binh Thuan Province and Loi Hai 2 in Ninh Thuan Province — with a total capacity of 54.2 megawatts.
The plants will generate about 170 million kilowatt-hours of clean energy annually once they start operating later in 2021.
Founded in 2009, TBW developed one of the first wind power plants in Viet Nam — the 24-MW Phu Lac 1 plant in Binh Thuan Province. With a large pipeline of wind and solar power projects, the financing package from IFC will help the company channel that renewable energy potential into operation.
The financing package from IFC includes funds mobilised by the multi-investor Managed Co-Lending Portfolio Programme (MCPP), managed by IFC’s innovative syndications platform, which allows institutional partners to commit funds for a set of future IFC loans.
“As REE expands its footprint in renewable energy, we are looking for long-term US dollar-based financing that is not readily available in the local market. We are confident that IFC’s support will help us implement a strategic drive to green our power sector portfolio in the coming years,” said Nguyen Ngoc Thai Binh, REE Deputy Chief Executive Officer.
“The wind power sector in Viet Nam is still in its nascent stage but has very large-scale potential. IFC’s engagement will demonstrate viability to investors and help mobilise the much-needed funding to help realise Viet Nam’s cleaner, renewable energy potential,” said Kyle Kelhofer, IFC’s country manager for Viet Nam, Cambodia, and Laos.
Driven by robust economic growth, Viet Nam foresees the need for a twofold expansion of its installed power capacity by 2030 to meet increasing electricity demand. Renewable energy capacity including rooftop solar is projected to increase by approximately 19 GW to more than 36 GW over the coming decade, at an estimated cost of about $20 billion. — VNS