Norway’s Norsk Solar signs term sheet for stake in Vietnamese firm

Norsk Solar, a Norwegian independent power producer (IPP) in renewable energy, has signed a term sheet for potential purchase of a minority shareholding in “an established and growing Vietnamese IPP.”

In a Wednesday statement on its website, the company said acquiring the stake would provide “access to operating assets as well as a significant development portfolio in Southeast Asia.”

The statement did not reveal the identity of the Vietnamese firm.

It said the term sheet was inked by Nordic Impact Cooperation AS (NIC), a joint investment platform between Norsk Solar and Finnfund in which Norsk Solar holds a 33.98% stake.

The term sheet would create opportunities for Norsk Solar and NIC to leverage expertise, technology and resources to strengthen the renewable energy landscape and reduce CO2 and combat climate change.

Norsk Solar said it plans to get a stronger foothold in Vietnam, which, with its growing energy demand and commitment to renewable energy sources, provides a promising environment.

In December 2021, Norsk Solar completed installing an 11-MW rooftop solar system for a facility invested by Thailand’s major retailer Central Retail in the northern province of Quang Ninh. The project was the first investment made by NIC.

In mid-2023, Norsk Solar and Vietnam’s Copper Mountain Energy Solar inked an agreement to jointly advance renewable energy initiatives in Vietnam.

Established in 2017 as a developer of solar renewable energy projects focused on the commercial and industrial, Norsk Solar currently has ownership interests in a 100 MW portfolio in operation or under construction in Vietnam, Brazil, Pakistan and Ukraine.