Illustrative image (Source: VNA) Hanoi (VNS/VNA) - Commercial banksare rushing to provide loans for green energy projects amid a wave of investmentin the growing industry, dubbed a landmark for the country’s renewable energyoutlook.
Vietcombank has recently approved a 785 billionVND (33.55 million USD) loan for the BP Solar 1 project, which has totalinvestment capital of 1.2 trillion VND with designed output of 46MW in thesouth central coast province of Ninh Thuan.
The bank last month also signed a contract withthe Dai Hai Power Investment and Development SJC to fund its 1 trillion VNDSrepok Solar 1, which has a designed output of 50MW.
Another bank – HDBank – has so far also plannedto set aside up to 7 trillion VND for the construction of green energy projectsfrom now to 2020.
Under HDBank’s plans, it will lend to projectswhich were approved by the Government and reach their commercial operationdate before June 30, 2019.
To qualify for the bank’s loans, borrowers musthave a minimum equity of 150 billion VND and the equity ratio in their projectsmust be at least 30 percent of the projects’ total investment capital. The bankalso requires that all proceeds from the projects be transferred to thecustomers’ accounts at HDBank.
VietinBank has recently financed 1 trillion VNDfor the 68.8 MW TTC 01 solar project in the southern province of Tay Ninh. Theproject has total investment of 1.6 trillion VND.
Early this year, two banks – Agribank andVietnam Development Bank – signed a contract to co-fund the Phong Diensolar power project in the central province of Thua Thien-Hue.
The Phong Dien project, which has a designedoutput of 35 MW and total investment cost of 838 billion VND, was recentlyinaugurated after just nine months of construction, becoming the first solarpower plant to be put in to operation in the country.
The wave of investment in the renewable energyindustry was spurred by the Government’s incentives and the country’s strongpotential for solar and wind energy generation. Investors are also racingagainst time so their projects enjoy the Government’s preferential feed-intariff (FiT).
According to the Government, only solar energy projectswhich reach commercial operation dates (COD) before June 30, 2019 qualify toenjoy the FiT of 9.35 US cents per kWh. The deadline for onshore andoffshore wind power projects to get the FiT of 1,928 VND (8.5 UScents) and 2,223 VND (9.8 US cents) per kWh, respectively, is November 1,2021.
With such prices, if they meet the deadline,renewable power projects will make significant profits as the power retailprice currently averages at only 1,720.65 VND per kWh (7.54 US cents).
The financial and business informationcorporation Stoxplus said that foreign and local investors are excited aboutrenewable energy in Vietnam, which is expected to grow at 23.2 percent annuallyduring 2020-2030.
There are some 245 renewable energy projects inVietnam, including wind and solar power as well as biomass electricity, whichare being deployed at different stages. If all these projects beginoperation, the total capacity of the country’s renewable energy should reach23.2GW, which is nearly 10 times higher than the target of 2.65GW by 2020 asindicated in the country’s Revised National Master Power Plan VII.-VNS/VNA
Vietcombank has recently approved a 785 billionVND (33.55 million USD) loan for the BP Solar 1 project, which has totalinvestment capital of 1.2 trillion VND with designed output of 46MW in thesouth central coast province of Ninh Thuan.
The bank last month also signed a contract withthe Dai Hai Power Investment and Development SJC to fund its 1 trillion VNDSrepok Solar 1, which has a designed output of 50MW.
Another bank – HDBank – has so far also plannedto set aside up to 7 trillion VND for the construction of green energy projectsfrom now to 2020.
Under HDBank’s plans, it will lend to projectswhich were approved by the Government and reach their commercial operationdate before June 30, 2019.
To qualify for the bank’s loans, borrowers musthave a minimum equity of 150 billion VND and the equity ratio in their projectsmust be at least 30 percent of the projects’ total investment capital. The bankalso requires that all proceeds from the projects be transferred to thecustomers’ accounts at HDBank.
VietinBank has recently financed 1 trillion VNDfor the 68.8 MW TTC 01 solar project in the southern province of Tay Ninh. Theproject has total investment of 1.6 trillion VND.
Early this year, two banks – Agribank andVietnam Development Bank – signed a contract to co-fund the Phong Diensolar power project in the central province of Thua Thien-Hue.
The Phong Dien project, which has a designedoutput of 35 MW and total investment cost of 838 billion VND, was recentlyinaugurated after just nine months of construction, becoming the first solarpower plant to be put in to operation in the country.
The wave of investment in the renewable energyindustry was spurred by the Government’s incentives and the country’s strongpotential for solar and wind energy generation. Investors are also racingagainst time so their projects enjoy the Government’s preferential feed-intariff (FiT).
According to the Government, only solar energy projectswhich reach commercial operation dates (COD) before June 30, 2019 qualify toenjoy the FiT of 9.35 US cents per kWh. The deadline for onshore andoffshore wind power projects to get the FiT of 1,928 VND (8.5 UScents) and 2,223 VND (9.8 US cents) per kWh, respectively, is November 1,2021.
With such prices, if they meet the deadline,renewable power projects will make significant profits as the power retailprice currently averages at only 1,720.65 VND per kWh (7.54 US cents).
The financial and business informationcorporation Stoxplus said that foreign and local investors are excited aboutrenewable energy in Vietnam, which is expected to grow at 23.2 percent annuallyduring 2020-2030.
There are some 245 renewable energy projects inVietnam, including wind and solar power as well as biomass electricity, whichare being deployed at different stages. If all these projects beginoperation, the total capacity of the country’s renewable energy should reach23.2GW, which is nearly 10 times higher than the target of 2.65GW by 2020 asindicated in the country’s Revised National Master Power Plan VII.-VNS/VNA
VNA
