Major institutions, firms team up to promote clean energy in SE Asia

By Nguyen Thuy
Wed, July 12, 2023 | 11:19 am GMT+7

Southeast Asia’s development of renewable energy generation and transmission, of which Vietnam will be both a buyer and seller, is gathering more forces to advance.

The Asian Development Bank (ADB) and Singapore’s Energy Market Authority (EMA) have signed a memorandum of understanding that paves the way for this regional development process while supporting the establishment of the ASEAN Power Grid.

The partnership will also boost Singapore’s efforts to decarbonize its power sector and import clean electricity from the region, ADB announced on Tuesday.

The collaboration will involve the sharing of expertise and best practices in areas like regional cooperation, public-private partnerships, structuring, and project financing.

The MoU also empowers ADB to use its full suite of products and services to support ASEAN countries and project sponsors in implementing and managing the risks of clean energy projects in the region.

“The clean energy transition demands high-impact collaboration across ASEAN and a diverse range of financing sources,” Ahmed M. Saeed, ADB’s vice president for East and Southeast Asia and the Pacific, said in the announcement.

“Investing in clean energy not only puts us on a path to net zero, but it increases prospects for strong and sustainable growth,” he said.

EMA chief executive Ngiam Shih Chun added: “This collaboration will combine the expertise and resources of EMA and ADB to further unlock the potential for low-carbon electricity to power the region, and boost efforts to decarbonize our power sector through imports of low-carbon electricity.”

A wind farm in Southeast Asia. Photo courtesy of the Asian Development Bank.

A wind farm in Southeast Asia. Photo courtesy of the Asian Development Bank.

Regional energy trade

In October 2021, EMA announced Singapore’s plan to import up to 4 gigawatts of low-carbon electricity, equivalent to 30% of its total supply, by 2035 as part of its plan to decarbonize the energy sector. Under this plan, the ongoing request has garnered over 20 proposals from six countries, offering a combined import capacity of more than 10 gigawatts. Singapore has also entered multiple energy collaboration agreements with source countries, including Vietnam, Cambodia, Laos, Indonesia, and Australia, to explore the potential export of electricity to Singapore.

State-run Petrovietnam and Singapore conglomerate Sembcorp Industries are planning to build offshore wind power projects to sell electricity to Singapore. As part of the plans, Petrovietnam Technical Services Corp. (PTSC) and Sembcorp Utilities announced the joint development agreement in Singapore in February.

Per the agreement, PTSC and Sembcorp Utilities will invest in a 2.3-gigawatt offshore wind farm in Vietnam and export electricity to Singapore via an undersea high voltage cable, CEO Le Manh Cuong of PTSC said.

An offshore wind power project normally takes at least five to seven years to reach commercial operation, he noted.

Sembcorp Industries and Malaysia’s Gentari Sdn Bhd, a provider of clean energy solutions, signed a collaborative agreement on June 26 to forge a partnership to speed up clean energy solutions in Southeast Asia.

“Through this strategic partnership with Sembcorp, Gentari aims to further accelerate the expansion of renewable energy and hydrogen-related initiatives,” Low Kian Min, chief renewables officer of Gentari, said in a release on July 5.

“This MoU signifies the shared vision and commitment of our two organizations to drive the energy transition in Southeast Asia,” he said.

In renewable energy, the two companies will explore the trade of renewable energy originating from Southeast Asia or other agreed-upon locations.

The collaboration will also encompass the supply of low-carbon hydrogen, Sembcorp Industries said.

ADB and Monsoon Wind Power Company Ltd. (Monsoon) signed a $692.55 million nonrecourse project financing package this March to build a 600-megawatt wind power plant in southern Laos to export power to neighboring Vietnam.

Comprising 133 wind turbines, the project will be the largest wind power plant in Southeast Asia and the first in Laos, ADB said.

ADB will serve as the sole mandated lead arranger and book-runner.

The package comprises a $100 million loan from ADB’s ordinary capital resources, a $150 million syndicated loan, $50 million in concessional financing, $382.55 million in parallel loans, and a $10 million grant.

The syndicated loan comprises $100 million from Thailand’s Siam Commercial Bank and $50 million from Japan’s Sumitomo Mitsui Banking Corporation.

The concessional financing administered by ADB comprises $20 million from the Leading Asia’s Private Infrastructure Fund and $30 million from the Canadian Climate Fund for the Private Sector in Asia.

The parallel loans include $120 million from the Japan International Cooperation Agency (JICA), $100 million from Thailand’s Kasikorn Bank, $72.55 million from the Asian Infrastructure Investment Bank (AIIB), $60 million from the Export-Import Bank of Thailand, and $30 million from Hong Kong Mortgage Corp.

The $10 million grant, from ADB’s Asian Development Fund – Private Sector Window, will help mitigate key project risks, including potential curtailment, which is a key bankability issue for lenders.

A wind farm in Quang Binh province, central Vietnam. Photo courtesy of Quang Binh newspaper.

A wind farm in Quang Binh province, central Vietnam. Photo courtesy of Quang Binh newspaper.

Japanese banks' $300 million for Vietnam

One month after ADB and Monsoon signed this major financing package, the Japan Bank for International Cooperation (JBIC) signed a deal with Vietnam’s Vietcombank to fund a total of $300 million to renewable energy firms in Vietnam.

Of the total, $165 million will come from JBIC. The balance will be made up by three other Japanese lenders, namely Mizuho Bank, Joyo Bank, and Shiga Bank

JBIC said it would also provide a guarantee for the portion co-financed by private financial institutions.

By indirectly utilizing Vietcombank’s credit information, the four Japanese banks expect that high-risk loans will be provided swiftly. Vietcombank will in turn provide subleasing loans, mainly to local businesses.

Comments (0)
  • Read More
Viettel Post-invested $27 mln logistics center project breaks ground in central Vietnam

Viettel Post-invested $27 mln logistics center project breaks ground in central Vietnam

Viettel Post, a subsidiary of military-run Viettel Group, has broken ground on an over VND722 billion ($27.41 million) logistics center project in Danang city, which is expected to enhance the logistics capacity of Vietnam's central and Central Highlands regions.

Industries - Sun, October 19, 2025 | 7:35 pm GMT+7

Vietnam's stock market regulator introduces green bond disclosure handbook

Vietnam's stock market regulator introduces green bond disclosure handbook

By enhancing transparency and standardizing disclosures, the Green Bond Disclosure Handbook that the State Securities Commission of Vietnam (SSC) introduced will build investor trust, reduce greenwashing risks, and support the growth of a credible and resilient green finance market in Vietnam.

Finance - Sun, October 19, 2025 | 2:11 pm GMT+7

Central Vietnam province Lam Dong seeks investment for 72 projects

Central Vietnam province Lam Dong seeks investment for 72 projects

The Lam Dong province People's Committee has called for investment in 72 projects across various sectors which are set for implementation in 2025 and the 2026-2030 period.

Industries - Sun, October 19, 2025 | 1:31 pm GMT+7

Vietnam's leading conglomerate Vingroup ventures into senior living market

Vietnam's leading conglomerate Vingroup ventures into senior living market

Vingroup JSC (HoSE: VIC) has unveiled Vin New Horizon, a network of premium retirement and wellness communities built to international standards, marking the Vietnamese conglomerate’s strategic entry into the senior living market.

Industries - Sun, October 19, 2025 | 12:28 pm GMT+7

Vietnam’s agri major HAGL makes surprise return to property, saying land plot forgotten for 15 years

Vietnam’s agri major HAGL makes surprise return to property, saying land plot forgotten for 15 years

Vietnam’s agri major Hoang Anh Gia Lai JSC's (HAGL) return to real estate is an accident, after discovering a plot of land the company had “forgotten for 15 years” during its boom years, said chairman Doan Nguyen Duc.

Companies - Sun, October 19, 2025 | 10:02 am GMT+7

REE to set up 2 subsidiaries for wind projects in southern Vietnam

REE to set up 2 subsidiaries for wind projects in southern Vietnam

Ho Chi Minh City-based utility firm Refrigeration Electrical Engineering Corporation (HoSE: REE) has decided to establish two wholly-owned subsidiaries to develop two wind power projects in Vinh Long province, expanding its renewable energy portfolio in southern Vietnam.

Energy - Sun, October 19, 2025 | 8:00 am GMT+7

Australian CEO detained, NSH Petro’s recovery hopes collapse

Australian CEO detained, NSH Petro’s recovery hopes collapse

The recovery prospects of NSH Petro (PSH) have dimmed after its Australian CEO was detained on allegations of fraud involving false promises of billion-dollar financing that led to the misappropriation of nearly $4.9 million.

Companies - Sat, October 18, 2025 | 6:53 pm GMT+7

Maintaining market status upgrade a bigger challenge: official

Maintaining market status upgrade a bigger challenge: official

Vietnam's stock market status will be upgraded by FTSE Russell from "frontier" to "secondary emerging" from September 21 next year, but continued reform is critical as the bigger challenge is to maintain the new classification, said a market watchdog official.

Finance - Sat, October 18, 2025 | 1:30 pm GMT+7

HCMC partners with Nasdaq to develop int’l financial center

HCMC partners with Nasdaq to develop int’l financial center

The Finance Department of Vietnam’s southern metropolis Ho Chi Minh City has signed an MoU with the U.S.-based stock exchange Nasdaq on the development of an international financial center (IFC).

Top News - Sat, October 18, 2025 | 11:56 am GMT+7

Vingroup plans $325 mln issuance of international bonds

Vingroup plans $325 mln issuance of international bonds

Vietnam's leading private conglomerate Vingroup (HoSE: VIC) has announced a board of directors resolution to issue $325 million worth of international bonds, with a five-year term and a yield of 5.5% per year.

Companies - Sat, October 18, 2025 | 10:26 am GMT+7

Vietnam raises personal income tax deductions by over 40%

Vietnam raises personal income tax deductions by over 40%

The Standing Committee of Vietnam’s National Assembly, the country's legislature, on Friday approved a resolution on adjusting personal income tax (PIT) deductions, marking a significant increase of over 40% from current levels.

Economy - Sat, October 18, 2025 | 9:11 am GMT+7

EVN subsidiary spreads the spirit of solidarity, compassion

EVN subsidiary spreads the spirit of solidarity, compassion

The employees of National Power Transmission Corporation (EVNNPT) came together in an inspiring display of unity and compassion in October, each donating one day’s salary to support and express solidarity with the people of Cuba - a nation that has long shared a special friendship with Vietnam.

Companies - Sat, October 18, 2025 | 9:00 am GMT+7

Property fever prompts tighter inspection in central Vietnam's economic hub Danang

Property fever prompts tighter inspection in central Vietnam's economic hub Danang

Chairman of Danang city People’s Committee, Pham Duc An, has ordered a comprehensive inspection and audit of land valuation and auction activities to prevent and address market manipulation that could destabilize the local property market.

Real Estate - Sat, October 18, 2025 | 8:00 am GMT+7

Vietnam mulls opening door for private investment in small modular reactors

Vietnam mulls opening door for private investment in small modular reactors

Vietnam’s Ministry of Industry and Trade has drafted a parliamentary resolution that, for the first time, would allow private companies to participate in the development of small modular nuclear reactors (SMRs).

Energy - Fri, October 17, 2025 | 4:37 pm GMT+7

Kido seeks buyer for remaining 49% stake in frozen food affiliate

Kido seeks buyer for remaining 49% stake in frozen food affiliate

Kido Group (HoSE: KDC), a leading food company in Vietnam, has approved a plan to divest the firm's remaining 49% stake in its affiliate Kido Frozen Food JSC (Kido Foods).

Companies - Fri, October 17, 2025 | 4:25 pm GMT+7

Le Ngoc Quang appointed Danang city's Party chief

Le Ngoc Quang appointed Danang city's Party chief

Le Ngoc Quang, a Party Central Committee member and Party chief of Quang Tri province, has been appointed Party chief of Danang for the 2025-2030 term - the highest position in the city, central Vietnam's economic hub.

Politics - Fri, October 17, 2025 | 4:17 pm GMT+7