ThomasLloyd Energy Impact Trust is making its first investment in Vietnam, via a new $30m local partnership with Solar Electric Vietnam. The first deal in this new partnership is an agreement to acquire Viet Solar System, a privately-owned company which holds 6.12MWp of rooftop solar assets. $4.6m will be utilised to acquire Viet Solar System. The remaining $25.4m is expected to be deployed on additional opportunities in Vietnam, including a portfolio of a 19MWp of rooftop solar assets currently under exclusivity.
The company says that the rapid growth and industrialisation experienced in Vietnam in recent years has led to a three-fold increase in the country’s electricity consumption, outpacing the growth in electricity output. As of 2021, Vietnam’s total installed capacity stood at 70,470 MW. The country’s installed capacity is dominated by three generating technologies; coal, hydro (large and small scale) and solar, accounting for 36.2%, 26.5% and 22.1% of total capacity respectively. Vietnam has made significant progress in the deployment of renewable energy. The country’s considerable natural endowments mean a substantial transition away from fossil fuel generation is, with the appropriate investment, readily attainable.
Solar Electric Vietnam is a well-established engineering, procurement and construction provider and renewable energy developer and has a track record of developing and constructing more than 80 MWp of solar projects supplying state-owned Electricity Vietnam and foreign-owned corporate and industrial offtakers. It has identified additional off-market solar assets with a total capacity of 137MWp.
The Viet Solar System portfolio consists of installations at two sites near Ho Chi Minh City which are named, ‘Hoang Thong’ and ‘Mo Cay’, both with 20-year US dollar-indexed fixed-price power purchase agreements (PPAs) with Electricity Vietnam. Both projects are located on the rooftops of factories, whereby a minority of the electricity generated is sold directly to the factory at a higher price than the Electricity Vietnam rate, with any surplus electricity not consumed by the factory sold to Electricity Vietnam under the PPAs. The impact of these assets is the supply of electricity to 3,589 people and avoidance of 7,324 tonnes of CO2 p.a. As part of the acquisition process, Viet Solar System will be renamed ThomasLloyd Energy Impact Holdings Vietnam JSC.
Following the completion of the acquisition of the 57% interest in SolarArise in India, which is expected to occur shortly and following full utilisation of the investment agreement for Vietnam announced today, the company will have deployed more than 86% of net IPO proceeds. TLEI’s portfolio now comprises three solar power projects in the Philippines, seven solar power projects in India (including a 200 MW construction-ready asset) and two solar power projects in Vietnam with a combined capacity of 520 MW.
TLEI : ThomasLloyd Energy Impact enters Vietnam