Da Mi has $37 million for a floating solar project it wants to build at its hydropower plant in Binh Thuan province.
DHD Chief Executive Officer Mr. Le Van Quang and the Deputy Director General of ADB’s Private Sector Operations Department Mr. Christopher Thieme (front) with the signed agreement. Behind them are the Ambassador of Canada Mrs. Deborah Paul (third from left, second row) and Senior Representative of JICA in Viet Nam Mr. Shu Kitamura (second from left, second row), along with ADB private sector operations team members. Photo: ADB
The Asian Development Bank (ADB) today signed a $37 million loan agreement with Da Nhim – Ham Thuan – Da Mi Hydro Power Joint Stock Company (DHD) to finance the installation of a 47.5 megawatt (MW) peak floating photovoltaic (PV) solar power facility on the man-made reservoir of DHD’s existing 175 MW Da Mi hydropower plant.
The project marks the first large-scale installation of floating solar PV panels in Vietnam and the largest installation in Southeast Asia.
Speaking at the event, ADB Private Sector Operations Department Deputy Director General, Christopher Thieme, said that this project would help to boost the share of renewable energy in Vietnam’s overall energy mix and decrease the dependence on imported fossil fuels such as coal.
“The pairing of these two clean energy technologies—hydropower and solar—is a simple but a highly innovative achievement which can be replicated elsewhere in Vietnam and across Asia and Pacific,” he said.
DHD, a subsidiary of the Vietnam Electricity (EVN) Power Generation Corporation 1, currently owns and operates four hydropower plants: Da Mi (175 MW), Ham Thuan (300 MW), Da Nhim (160 MW), and Song Pha (7.5 MW). DHD’s total generation capacity is 642.5 MW, about 1.7% of Vietnam’s total generation capacity.
“We are proud to be the first company in Viet Nam to construct a floating solar power plant on a hydropower reservoir,” said the Chairman of the Board of DHD Mr. Nguyen Trong Oanh.
“This project aligns with DHD’s strategy of investing in renewable energy to decrease dependence on fossil fuel, contribute to energy security, mitigate climate change, and promote environmental protection and sustainable socio-economic development. Hydropower reservoirs in southern Vietnam have vast solar power potential. Capitalizing on the strong relationship between EVN and ADB, we have worked together to catalyze a new source of power for the country.”
The financing package includes a $17.6 million loan from ADB’s ordinary capital resources. This is supplemented by $15 million of blended concessional cofinancing provided by the Canadian Climate Fund for the Private Sector in Asia and its follow-on fund, the Canadian Climate Fund for the Private Sector in Asia II. These funds were established by the Government of Canada to encourage private investment in climate change mitigation and adaptation projects in Asia and the Pacific.
The package also includes a $4.4 million parallel loan from the Leading Asia’s Private Infrastructure Fund (LEAP), supported by Japan International Cooperation Agency through a $1.5 billion equity commitment.
LEAP is focused on delivering high quality and sustainable private sector infrastructure projects that reduce carbon emissions, improve energy efficiency, and offer accessible and affordable health care, education, and communication services to ADB’s developing member countries.