Property developer Novaland Group has signed a memorandum of understanding with VinaCapital for using renewable energy at NovaWorld projects. The signing marks a milestone in Novaland’s plans to use green energy in its urban areas.

In recent times renewable energy has been talked up by international experts and mentioned among the long-term strategies of Vietnamese companies.

Novaland is one of the pioneers in the property industry in using renewable energy.

The proposed co-operation with VinaCapital for using renewable energy is Novaland’s response to the UN Climate Change Conference (COP-26) last month as it seeks to contribute to the Government’s net-zero emmissions target by 2025.

VinaCapital is one of the leading investors in renewable energy in the country. It targets developing 2,000MW of renewable electricity in the next five years.

SkyX Solar, a subsidiary of VinaCapital, in October raised funds from EDG Renewable, a global leader in the renewable energy industry.

SkyX now operated more than 30MW of rooftop solar power across Viet Nam and is committed to investing at least US$100 million to develop an additional 200MWp to meet the growing demand for international-standard low-carbon power from financial and industrial customers in Viet Nam.

Novaland said plans would be implemented by the two companies based on objectives in each phase.

Initially, they will focus on developing renewable energy at NovaWorld projects.

Bui Xuan Huy, General Director of Novaland Group, said: “In the process of operating businesses and projects, we always aim for the United Nations' sustainable development standards. We believe that the co-operation with VinaCapital in the field of renewable energy will be a long-term step, bringing efficiency as well as added value for both parties and the community in general."

Since 2019 Novaland has developed two hospitality projects under NovaWorld brands, NovaWorld Phan Thiet in Binh Thuan Province and NovaWorld Ho Tram in Ba Ria – Vung Tau, both over 1,000ha in size.

With many amenities, NovaWorld projects are pioneers in the second-home segment, which promises high profits to investors and a green environment to residents.

Don Lam, general director of VinaCapital, said technology is a key factor in solving difficulties faced by the energy industry.

“We are actively studying global trends to find technology solutions that can be applied in Viet Nam such as battery energy storage technology and smart grids. Furthermore, we also actively monitor the development of new energy sources.

“Today's co-operation proves the commitment of private businesses in accompanying the Government in achieving the goal of reducing carbon emissions. Renewable energy is also a way to help residents of projects contribute to the implementation of the sustainable development goals."