Swiss fund for sustainable development responsAbility will provide $20 million to Vietnam’s Copper Mountain Energy Solar (CME Solar), the latter announced on Wednesday.
Per the agreement, the Swiss fund will provide the loan in the form of long-term senior secured debt financing to the leading renewable energy developer in Vietnam. The deal is the largest investment by responsAbility into a non-financial institution up until 2023.
Of the financing facility, $12.8 million will be allocated for immediate disbursement for a top-tier Foxconn project, while the remaining $7.2 million wiill be used for other projects in Vietnam.
The deal will help the Ho Chi Minh City-based CME Solar to expand its solar power systems by up to 50 MWp, which would reduce 51,200 tons of carbon emissions yearly and deliver about 70,000 renewable energy certificates to end-users.
Investment from the Swiss fund to the Vietnamese renewable energy firm now stands at $32 million, and both sides are positive about further collaboration.
In July, Norway’s Norsk Solar and CME Solar signed an agreement to jointly advance renewable energy initiatives in Vietnam. The cooperation will focus on identifying and assessing key solar power project opportunities in Vietnam with an emphasis on commercial solar installations and large-scale solar farms. The two firms aim to streamline project development processes, increase efficiency, and ensure successful implementation of their ventures.
In May, HCMC-based CME Solar and Japan’s Sumitomo Forestry Group established a joint venture to expand the rooftop solar market in Vietnam. The companies said that the primary goal of the joint venture was to drive the adoption of rooftop solar energy systems across Vietnam towards delivering cutting-edge solutions that meet the country's increasing energy demands while adhering to the highest ESG standards.