SP Group acquires solar farms in Vietnam

The two solar farms acquired by SP Group, the Europlast Phu Yen Solar Power Plant (50MWp) and the Thanh Long Phu Yen Solar Power Plant (50MWp) in Phu Yen Province, are both located in the south-central coast of Vietnam. The Europlast Plant has been in operation since 2019 and generates 60 Gigawatt-hours (GWh) of clean electricity annually, while the Thanh Long Plant was established in late 2020 and has been generating 70GWh of clean electricity annually.

The two solar farms will provide a total of 130 GWh of clean electricity to the Vietnam Electricity power grid annually and can power more than 36,000 households in the country. Both solar farms combined will help Vietnam to reduce its CO₂ emissions by up to 105,000 tonnes annually.

Despite global economic uncertainty, SP is confident of Vietnam’s continued long-term development. The deal marks SP’s first investment in solar farm assets in Vietnam, and is part of SP Group’s green ambitions in Vietnam to invest and develop 1.5 GW of utility scale and rooftop solar projects by 2025. This is aligned with the company’s long-term vision to help Vietnam achieve its sustainability targets of reaching net-zero emissions by 2050.

With Vietnam in discussions on a Direct Power Purchase Agreement (DPPA), end-customers may be able to purchase renewable energy directly from solar farms to supply their clean energy demands in the future.

SP currently designs, deploys and operates rooftop solar solutions that generate clean energy to green part of customers’ energy mix. With this acquisition, SP will have the capability and expertise to help customers achieve 100 per cent clean energy consumption when the DPPA is in place. This acquisition demonstrates SP’s long-term commitment to be a one-stop provider of sustainable energy services that enables commercial and industrial customers to achieve their net-zero ambitions.

Brandon Chia, managing director, Sustainable Energy Solutions (SEA and Australia), SP Group, said “This acquisition is a key milestone of our long-term ambitions to help Vietnam transition towards a cleaner and economically sustainable future by incorporating more renewable energy for the country. Through our solar power offerings in both rooftop and utility-scale solutions, SP Group will be a one-stop provider to help our Vietnam customers meet their decarbonisation goals."

"In addition to renewables, we aim to help businesses and cities in Vietnam go green and to optimise energy demand and increase energy efficiency for commercial buildings, manufacturing facilities, and industrial parks,” added Chia.

Since 2021, SP has been developing rooftop solar projects across the country through several partnerships and joint ventures, accumulating a total of more than 115MW of rooftop solar assets to date. The ventures include a partnership agreement with CJ OliveNetworks to jointly invest, build, and develop up to 50MWp of rooftop solar projects across Vietnam over the next two years. SP also inked an agreement to install up to 20MWp of rooftop solar power at three mega factories for manufacturer TKG Taekwang Vina in Vietnam.