(iStock)
SK Ecoplant, a South Korean construction and waste management company, announced on March 22 that it has reached an agreement with BCG Energy (BCGE), a wholly-owned subsidiary of Vietnam's Bamboo Capital Group, to develop solar and wind power projects in Vietnam.
Under the initial agreement, the two firms will collaborate on developing 700 MW of renewable energy projects in Vietnam, comprising 300 MW of onshore wind power, 300 MW of rooftop solar power, and 100 MW of ground-mounted solar power.
The projects include wind power generation in Gia Lai, a highland province in central Vietnam known for its abundant wind resources.
BCGE is an established local developer for both wind and solar. It already operates a solar power plant with a capacity of approximately 600 MW in Vietnam. BCGE’s wind power generation projects currently under development are more than 800 MW.
SK Ecoplant has been striving to transform from a construction firm into an eco-friendly energy company. On the same day, it said that it will participate in projects aimed at securing carbon rights to the benefits generated from carbon emission reductions, by selling carbon credits in voluntary or compliance carbon markets or through a government-sponsored payment for ecosystem services (PES) scheme.
In 2021, the firm registered its clean development mechanism (CDM) project in Vietnam with the United Nations Framework Convention on Climate Change (UNFCCC). Under the scheme, SK Ecoplant will receive carbon credits from the UN body proportionate to the performance of its greenhouse gas reduction projects.
Vietnam is a developing country with 10% annual growth in energy demand. The Southeast Asian nation is investing significantly in the renewable energy field to reduce its reliance on fossil fuels.
South Korean industry officials said there is huge potential in solar power generation projects in Vietnam, given the country’s abundant sunlight. The country also has plenty of islands with average annual wind speeds over 5 meters per second, favorable conditions for wind power generation.
Vietnam’s renewable energy generation capacity more than fourfold to 21.6 GW in 2023 from 5.2 GW in 2019, According to data from Korea Trade Investment Promotion Agency (KOTRA).
