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Overseas Corporations Flock to Vietnam For a Solar Power Era
Vietnam now focuses on providing solar power to the nation after discarding plans for a nuclear project worth US $18 billion in 2016. Officials stated it was not economically viable with other sources of power available.
The demand for electricity has increase by 12% over the past year as the country aims to become a leading economy. Vietnam’s new age of renewable energy is warming up the interest of foreign corporations in its technology-based power projects. Solar power currently accounts for 0.01% of the total generation capacity, but the government has plans to increase the ratio to 20% by 2050.
As Vietnam scrambles to make up for the power shortage to provide electricity to its expanding population of 92.7 million people, projects spread across the country funded by Japanese and overseas corporations. Hundreds of constructions in 2018 together will create a capacity of 17,000 megawatt (MW), providing electricity to over 3,400,000 households annually.
In Hanoi, the government has paired up with international corporations to build 5 mega-scale solar plants in Southern Vietnam. Construction for this US$2 billion project will complete in 2020. The first plant will produce 50MW of electricity for its neighboring cities, followed by 4, each producing 200 to 300 MW. The plant complex will generate 1 gigawatt (GW), equivalent to that of a nuclear reactor.
Japanese multinational corporation, Hitachi Zosen completed the first waste incineration power plant in Hanoi last April. Post-trial operation, the plant will power 5,000 households and incinerate 75 tons of waste per day.
JGC Corporation, headquartered in Yokohama, was awarded the contract for construction of a mega-solar power generation plant to power 47,000 households annually. The project costs US$1 billion and covers 75 hectares of land.
Sharp also landed a 48MW solar power project in North Vietnam. The plant will generate electricity to cover the demand of 33,000 households annually. Construction is to begin this September.
Last month, Singaporean clean energy firm, Sunseap, in partner with CMX RE Canada and InfraCo Asia, announced the development of a 168MW utility-scale power plant in Ninh Thuan to power 200,000 households. “Projects like Ninh Thuan solar [will] create a ‘demonstration effect’ that serves as a beacon for future development,” said Mr. Allard Nooy, CEO of InfraCo Asia.