The Asia Development Bank (ADB) will provide Da Nhim - Ham Thuan - Da Mi Hydro Power JSC (DHD) a loan of US$37 million to install a 47.5MW peak floating photovoltaic (PV) solar power facility on the reservoir of DHD’s existing 175 MW Da Mi hydropower plant, following a signing ceremony in Hanoi on October 2.
The project marks the first large-scale installation of floating solar PV panels in Vietnam and the largest installation in Southeast Asia.
“This project will 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,” ADB Private Sector Operations Department Deputy Director General Christopher Thieme said.
“The pairing of these two clean energy technologies - hydropower and solar - is a simple but highly innovative achievement which can be replicated elsewhere in Vietnam and across Asia and the Pacific,” he noted.
Chairman of the Board of DHD Nguyen Trong Oanh said: “We are proud to be the first company in Vietnam to construct a floating solar power plant on a hydropower reservoir,” adding that the project aligns with DHD’s strategy of investing in renewable energy to decrease dependence on fossil fuels, contribute to energy security, mitigate climate change, and promote environmental protection and sustainable socio-economic development. ydropower reservoirs in southern Vietnam have vast solar power potential. Capitalising on the strong relationship between EVN and ADB, we have worked together to catalyse a new source of power for the country.”
The financing package for the project includes a US$17.6 million loan from ADB’s ordinary capital resources. This is supplemented by $15 million of blended concessional co-financing 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 (JICA). In March 2016, JICA passed a financing plan to contribute US$1.5 billion to LEAP. Since then, JICA has approved combined funding of US$500 million for high-quality infrastructure projects in various fields, such as healthcare projects in India and Indonesia and renewable energy projects in Thailand and Mongolia.
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.
DHD, a subsidiary of the Vietnam Electricity (EVN) Power Generation Corporation 1, currently owns and operates four hydropower plants, including 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.
