The Japan International Cooperation Agency (JICA) has signed a loan agreement to provide up to $25 million for an onshore wind power project with a total capacity of 88 MW in south-central Ninh Thuan province.

The project is expected to help Vietnam reach its clean energy and climate action targets by offsetting about 215,000 tons of carbon dioxide each year.

Sponsors are the BIM Energy Holding Corporation, a subsidiary of the BIM Group Joint Stock Company, one of Vietnam’s largest private conglomerates, and ACEN Vietnam Investments Pte. Ltd., a subsidiary of the ACEN CORPORATION (ACEN), the listed energy platform of the Ayala Corporation, a major conglomerate in the Philippines.

The loan is co-financed by the Asian Development Bank (ADB) and other financial institutions, such as the Hong Kong Mortgage Corporation Limited, the Sumitomo Mitsui Banking Corporation, ING Bank, and Cathay United Bank.

The Vietnamese Government expects the country’s electricity demand to increase by 9.1 per cent annually in the 2020-2030 period. It aims to cut greenhouse gas emissions by 9 per cent by 2030 compared to a base case scenario without climate change measures.

To achieve both an increase in electricity supply and boost climate resilience, the government has set a target of 15-20 per cent of power generation capacity, or 125-130 GW, coming from renewable sources by 2030. In particular, 6,000 MW will be provided by wind power projects, taking advantage of the country’s abundant wind power on its coastline and mountains.

The project will contribute to SDG Goal 7 (Ensure access to affordable, reliable, sustainable and modern energy for all), Goal 13 (Take urgent action to combat climate change and its impacts), and Goal 17 (Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development).