Phu My Solar Plant receives earliest COD

May 31, 2023 | 18:05
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Bamboo Capital Group's Phu My Solar Power Plant has just achieved a significant milestone as the earliest recognised commercial operation date (COD) for a transitional renewable energy project on May 30. The project is setting a high standard for others to follow and positions the company as a key player in driving the country's renewable energy transition.
Phu My Solar Plant receives earliest COD

The plant, which is the largest solar power facility in the Central region of Vietnam, began construction on May 29, 2020, with a capacity of 330 MW and a total investment exceeding VND6.5 trillion ($277 million).

On December 31, 2020, the Phu My Solar Power Plant started its commercial operation with an initial grid connection of 216 MW. The plant enjoyed a favourable power purchase price of 7.09 US cents/kWh over a 20-year period.

After a two-year wait, the remaining 114 MW of the plant received official recognition for commercial operation on May 30 this year, making it the first successful renewable energy transitional project to achieve COD recognition.

Bamboo Capital's completion of Phase 1 and Phase 3 of the power plant showcases its comprehensive approach and adherence to legal requirements. This accomplishment reinforces investor confidence and demonstrates the company's commitment to sustainable energy. With the entire 330 MW capacity of the Phu My Plant contributing to Bamboo Capital's revenue, the plant will play a significant role in advancing Vietnam's emission reduction goals and benefiting the domestic power sector.

Bamboo Capital's strategic vision for clean energy development has been validated by the approval of Power Development Plan VIII (PDP8), which prioritises renewable energy policies.

While policies restricting solar power projects have affected the industry, Bamboo Capital has adapted its focus to wind power. The company has already made strides in wind power through mergers and acquisitions, with ongoing projects in Ca Mau and Tra Vinh. Bamboo Capital is actively exploring further opportunities in wind power development, focusing on promising locations in the Northern mountainous region.

The company also possesses approximately 600 MW of solar power assets from four plants and rooftop installations, generating stable annual revenue. With the revenue stream from transitional projects, expanding rooftop solar projects, and the completion of wind power projects, Bamboo Capital's revenue from the renewable energy segment is poised for substantial growth.

Recognising the untapped potential for rooftop solar power, Bamboo Capital has actively pursued this segment through its subsidiary, BCG-SP Greensky. The company has been developing rooftop solar power systems in export processing zones, industrial parks such as Linh Trung and Chan May, large-scale farms, and manufacturing plants owned by Vinamilk.

Bamboo Capital's successful international fundraising efforts have further strengthened its competitive advantage. Noteworthy ventures include mobilising funds from Hanwha Energy and Leader Energy. In March 2023, the joint venture company BCG-SP Solar 1 secured a significant disbursement from three Singaporean banks, including DBS, Oversea Chinese Banking Corporation, and United Overseas Bank Limited.

Bamboo Capital's competitive edge lies in its project implementation capabilities, experience, and collaborations with reputable international financial institutions to secure low-interest capital.

Since the approval of PDP8 and the commencement of commercial operations for transitional projects, foreign investors' trust in the company has been reinforced, opening up wider opportunities for Bamboo Capital to tap into international green credit.

As the renewable energy sector in Vietnam continues to evolve, Bamboo Capital is at the forefront, driving the transition towards clean and sustainable energy sources. Through successful projects like the Phu My Solar Power Plant, the company has positioned itself as a key player in shaping the country's energy landscape and to make a significant contribution to Vietnam's sustainable development and environmental goals.

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By Trung Duong

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