French firm acquires 49.5 MWp solar farm in central Vietnam

GreenYellow, a French renewable energy transition player specializing in energy management services, has acquired a 49.5 MWp solar farm in Binh Dinh as it bids to expand Southeast Asia presence.

The firm said in a release that it has become operator of the farm in the central province.

It has also acquired a 70% majority stake in the Vietnamese subsidiary of QAIR - a fast growing French independent renewable energy producer refocusing on the European, Brazilian, and African markets.

The acquisition includes teams of highly qualified and competent professionals who have extensive experience in the field of solar energy, thus strengthening the firm’s deliverability capabilities, GreenYellow said.

“Additionally, we will strengthen our expertise in managing large-scale projects and conducting internal due diligence,” it added.

Qair experts will also add new skills in research for funding and managing the operation and maintenance of major solar energy projects. This will allow GreenYellow Vietnam to extend its area of expertise, which is currently focused on private purchase contracts for solar energy (PPA).

"The solar farm acquired by GreenYellow confirms the desired strategy evolution to move towards large-scale projects in addition to our strong presence in the private sector of PPA C&I," said Sebastien Prioux, CEO of GreenYellow Vietnam and Cambodia.

“With this acquisition, we will be able to manage both private self-consumption and large-scale utility products, in particular within the framework of the direct power purchase agreement (DPPA) mechanism. This is the reason why we include these types of assets in our portfolio, so our clients will have a single point of contact in GreenYellow to develop, finance and operate large-scale solar projects for the DPPA," he said.

Prioux said solar power has seen unprecedented development in Vietnam, with capacity growing from 105 MW in 2018 to over 16,500 MW by December 2020, making it the largest solar market in Southeast Asia.

Therefore, GreenYellow was always on the lookout for new investments that help diversify its business model in this area, he added.

He acknowledged that the large-scale solar market is expected to become difficult in the next five years due to the decrease in the proportion of new solar farms under the DPPA program in Vietnam.

“However, the company is still betting on the segment to capitalize on new market opportunities beyond 2030. Binh Dinh's latest solar farm acquisition demonstrates this vision,” he said.

Vietnam has huge potential for solar photovoltaic (PV) development in the industrial and commercial sectors. The increasing number of factories being established in Vietnam will have high energy demand. The country also has huge potential for solar photovoltaic installations in commercial and industrial buildings under the self-consumption program.

GreenYellow is stepping up its operations in this segment to strengthen its position as a key player in the private solar PPA market in Vietnam, Prioux said.

"With a view to being a long-term investor in the country, we aim to build a solid base of renewable energy assets for the next 20 to 25 years. Our mission is to become a leading energy service provider for all potential B-2-B customers."

Vietnam is a very promising market for GreenYellow as the trend and depth of the market is large enough for the company to play a major role in the long run, Prioux said, adding that his firm would continue its efforts to increase investment in Vietnam in the areas of private solar PPAs, solar farms and energy efficiency.

GreenYellow was founded as a startup company by Otmane Hajji, its current president. It is now present in 16 countries in four continents.

EDP Renovaveis, S.A., a top renewable energy firm in Spain, in June reached an agreement worth $284 million with Xuan Thien Group, a main power developer in Vietnam, to acquire two solar power projects in Ninh Thuan province.