Illustrative photo (Source: VNA)Hanoi(VNA) – The Japan International Cooperation Agency (JICA) has recently signed a facilityagreement to provide up to 25 million USD for an onshore wind power generationproject with a total capacity of 144 MW in the central province of Quang Tri.
The Power Construction Joint Stock Company No. 1, a major local company inVietnam in the field of renewable energy development and electromechanicalworks, and RENOVA, Inc., a leading renewable energy IPP developer in Japan, aresponsors to the project.
Three project companies namely Lien Lap Wind Power Joint Stock Company, PhongNguyen Wind Power Joint Stock Company, and Phong Huy Wind Power Joint StockCompan are the borrowers. The loan is co-financed by Asian Development Bank(ADB) and Export Finance Australia under the Australian government.
This project is JICA’s first finance for a wind power generation project inVietnam and is expected to serve as a model case for private sector windpower generation projects in the renewable energy sector in Vietnam, includingthose by Japanese and local companies.
In addition, the project will contribute to the Initiative on Overseas loan andInvestment for ASEAN announced at the Japan-ASEAN Summit Meeting on November 4,2019, and is the first investment by a Japanese company in a new-largescale wind power project in Vietnam.
According tothe Ministry of Industry and Trade of Vietnam, electricity demand in Vietnam isexpected to increase by 8-8.5 percent per year from 2021 to 2025, and demandfor electricity is expected to be strong.
TheVietnamese government has also set a target of reducing greenhouse gasemissions by 9 percent in 2030 compared to the base-case scenario withoutclimate change measures and has adopted the introduction of renewable energy asa specific measure.
In order to increase the supply of electricity and combatclimate change at the same time, the government has set a target of usingrenewable energy sources for about 15-20 percent of the 125-130 GW of powergeneration capacity in its power development plan for 2030 of which 6000 MWwill be supplied by wind power projects./.
VNA
