Leading Japanese clean power company Eurus Energy Holdings Corp has selected Vietnam as its entry point into Southeast Asia for new developments including renewable energy investments.
It has set up a subsidiary, Hanoi-headquartered Eurus Energy Vietnam LLC, to oversee its expansion in the country as well as Southeast Asia.
Demand for electricity in Vietnam is expected to keep increasing due to economic and population growth, and the country is promoting the construction and expansion of power plants using new sources, the company said in its Monday announcement of the subsidiary’s establishment.
“In particular, wind power generation is attracting attention in Vietnam as an alternative to thermal power generation using fossil fuels, as it is one of the countries in Southeast Asia with favorable wind conditions,” the company said.
Eurus Energy Vietnam will focus on the development and operation of wind power plants as well as solar farms, it added.
The Vietnamese government plans to introduce 17 gigawatts of onshore wind capacity by 2030 and 39 GW by 2045 as part of efforts to achieve carbon neutrality by 2050.
“Now, with a base in Vietnam, Eurus Energy Group will contribute to the stabilization of electricity supply and the development of low-carbon society infrastructure in the country by leveraging our knowledge and experience in the renewable energy business,” the Japanese company said.
Eurus Energy claims it is Japan’s leading developer of wind farms. It operates such facilities in Hokkaido, Aomori, Akita, Iwate, Miyagi, Fukushima, Ibaraki, Shizuoka, Osaka, Hyogo, Wakayama, Shimane, Tokushima, Ehime, Kochi and Kagoshima.
On August 3, UK-based and Southeast Asia-focused Coro Energy announced it has attracted an indicative funding proposal from Capton Energy for its Vietnamese rooftop solar projects.
Capton is seeking to buy into Coro's current Vietnamese solar projects and invest in its project pipeline of up to 50 megawatts. The parties are already in advanced talks on the deals.
Coro said it has committed to a four-month period of exclusivity for the parties to conclude the transaction.
Dubai-based Capton is a joint venture between Siemens Financial Services, an arm of German giant group Siemens AG, and Saudi Arabia’s solar power developer Desert Technologies. It focuses on building energy transition infrastructure in Asia, Africa and the Middle East.