Sembcorp Utilities, a wholly-owned subsidiary of Sembcorp Industries and BCG Energy, a wholly-owned subsidiary of Bamboo Capital Group inked an agreement for the development of renewable projects in Vietnam on December 9, 2021.
Bamboo Capital Group (BCG) is one of the pioneers in Vietnam’s renewable energy industry with strong knowledge of the local market and extensive experience in developing large-scale infrastructure projects. Sembcorp 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. Sembcorp’s Vietnam Singapore Industrial Park (VSIP) is also a leading name in integrated townships and industrial parks in Vietnam.
Under the collaboration, Sembcorp and BCGE will leverage each other’s strengths and resources to identify and jointly develop a pipeline of up to 1.5GW of wind and solar projects in Vietnam.
In the latest draft of its National Power Development Plan 8 (PDP VIII), Vietnam has prioritised the development of renewable energy sources. The draft PDP VIII includes increasing the country’s solar and wind capacity to about 21.4GW and 12.5GW by 2030, respectively.
Koh Chiap Khiong, CEO of Singapore and Southeast Asia, Sembcorp Industries said: “Vietnam is a key growth market for Sembcorp in this region as we transform our portfolio from brown to green. BCG Energy is an established and strong local developer in both wind and solar projects, and we are pleased to partner them to bring in our next wave of investment in renewables to Vietnam.”
Pham Minh Tuan, vice chairman of the Board of Directors cum general director at BCG, emphasised, "The draft PDP VIII of the Vietnamese government clearly illustrates then country's priority on renewable energy development. Prime Minister Pham Minh Chinh also pledged at the United Nations Climate Change Conference (COP26) for Vietnam to reduce net emissions to zero by 2050."
This, he added, demonstrates that BCG's involvement in solar power and wind power is a good fit for the Vietnamese market.
"We are delighted to be working with Sembcorp since the firm is a trusted partner with strong financial resources, long-standing experience, and prestige in the European energy sector. The collaboration between BCG and Sembcorp not only helps both parties in terms of business performance it also fosters the transition to clean energy in Vietnam, contributing to Vietnam's future emission reduction objective," Tuan said.
By Luu Huong