Sembcorp Utilities, a wholly-owned subsidiary of Sembcorp Industries (Sembcorp), and BCG Energy (BCGE), a wholly-owned subsidiary of the Bamboo Capital Group (BCG), announced on December 9 that they had signed a cooperation agreement on the development of renewable energy projects in Vietnam.

BCGE is one of the pioneers in Vietnam’s renewable energy industry, possessing strong knowledge of the local market and extensive experience in developing large-scale infrastructure projects. Sembcorp, meanwhile, has invested in Vietnam for more than 20 years through its integrated energy and urban management expertise, and is looking to scale up its renewables portfolio in the country. Its Vietnam Singapore Industrial Park (VSIP) is also a leading name in integrated townships and industrial parks in Vietnam.

Under the agreement, Sembcorp and BCGE will leverage each other’s strengths and resources to identify and jointly develop a pipeline of up to 1.5 GW of wind and solar projects in Vietnam.

In the latest draft of its eighth national power development plan (PDP VIII), Vietnam has prioritized the development of renewable energy sources. The draft includes increasing the country’s solar and wind capacity to about 21.4 GW and 12.5 GW, respectively, by 2030.

Mr. Koh Chiap Khiong, CEO of Singapore and Southeast Asia at Sembcorp Industries, said that Vietnam is a key growth market for the company in the region as it transforms its portfolio from brown to green. “BCG Energy is an established and strong local developer in both wind and solar projects, and we’re pleased to partner with them to bring in our next wave of investment in renewables to Vietnam,” he added.

Mr. Pham Minh Tuan, Vice Chairman of the Bamboo Capital Group and CEO of BCG Energy, said the draft PDP VIII shows that the country is prioritizing the development of renewable energy. He also noted that at the recent COP26 in Glasgow, Prime Minister Pham Minh Chinh pledged that Vietnam was working to reduce its net emissions to zero by 2050. “BCGE devoting resources to developing solar and wind power projects demonstrates that we are moving in the right direction for the Vietnamese market,” he added. “We are very pleased to cooperate with Sembcorp because it is a partner with good experience and reputation in the energy sector in Asia. The partnership between BCGE and Sembcorp not only brings economic benefits to both companies but also promotes Vietnam’s clean energy transition, contributing to its emission reduction goals in the future.”

Recently, BCG and BCG Energy have been constantly expanding their diverse partner ecosystem of local and international organizations to attain the target of reaching renewable energy capacity from 1.5 GW to 2 GW by 2023. At the end of July, BBC Energy and the SP Group formalized a joint venture to invest in rooftop solar and explore other renewable energy projects in Vietnam with an initial target of developing 500 MW of rooftop projects by 2025. On October 31, at COP26, BCG Energy signed a memorandum of understanding with Siemens Gamesa Renewable Energy SA to secure wind farm equipment worth some $400 million, in order to implement wind energy projects with 500 MW in capacity in Tra Vinh, Soc Trang, and Ca Mau provinces in the Mekong Delta.

After that, on November 27, the Bamboo Capital Group, DEEP C Industrial Zones, and the Sojitz Corporation signed a memorandum of understanding on three-party cooperation in developing industrial park projects and ancillary infrastructure services, including rooftop solar systems, and to conduct research into other types of green energy and storage with expected total investment capital of approximately $250 million.