DHD’s general director Le Van Quang and Christopher Thieme from ADB after the signing agreement. (Photo courtesy of ADB)
Hanoi (VNA) — The Asian Development Bank (ADB) on October 2 signeda 37 million USD loan agreement with Da Nhim – Ham Thuan – Da Mi Hydro Power Joint Stock Company(DHD) to finance the installation of a 47.5 MWp floating photovoltaic (PV) solar power facility on theman-made reservoir of DHD’s existing 175 MW Da Mi hydropower plant.
ꦐ The project marks the first large-scale installation of floatingsolar PV panels in Vietnam and the largest installation in Southeast Asia,according to ADB’s press release.
“This project will help to boost the share of renewable energy inVietnam’s overall energy mix and decrease the dependence on imported fossilfuels such as coal,” said ADB Private Sector Operations Department DeputyDirector General Christopher Thieme.
He added that the pairing of those two clean energy technologies — hydropower and solar — is a simple but a highlyinnovative achievement which can be replicated elsewhere in Vietnam and acrossAsia and Pacific.
DHD, a subsidiary of the Vietnam Electricity (EVN) PowerGeneration Corporation 1, currently owns and operates four hydropower plants: Da Mi (175 MW), Ham Thuan(300 MW), Da Nhim (160 MW), and Song Pha (7.5 MW). DHD’s total generationcapacity is 642.5 MW, about 1.7 percent of Vietnam’s total generation capacity.
“We are proud to be the first company in Vietnam to construct a floating solar power plant on a hydropowerreservoir,” said the Chairman of the Board of DHD Nguyen Trong Oanh. “Thisproject aligns with DHD’s strategy of investing in renewable energy to decreasedependence on fossil fuel, contribute to energy security, mitigate climatechange, and promote environmental protection and sustainable socio-economicdevelopment. Hydropower reservoirs in southern Vietnam have vast solar power potential. Capitalizing on the strongrelationship between EVN and ADB, we have worked together to catalyze a newsource of power for the country.”
The financing package includes a 17.6 million USD loan from ADB’sordinary capital resources. This is supplemented by 15 million USD of blended concessionalcofinancing provided by the Canadian Climate Fund for the Private Sector inAsia and its follow-on fund, the Canadian Climate Fund for the Private Sectorin Asia II. These funds were established by the Government of Canada toencourage private investment in climate change mitigation and adaptation projectsin Asia and the Pacific.
The package also includes a 4.4 million USD parallel loan from theLeading Asia’s Private Infrastructure Fund (LEAP), supported by the JapanInternational Cooperation Agency through a 1.5 billion USD equity commitment. LEAP isfocused on delivering high quality and sustainable private sectorinfrastructure projects that reduce carbon emissions, improve energyefficiency, and offer accessible and affordable health care, education, andcommunication services to ADB’s developing member countries.
ꦺ ADB is committed to achieving aprosperous, inclusive, resilient, and sustainable Asia and the Pacific, whilesustaining its efforts to eradicate extreme poverty. In 2018, it madecommitments of new loans and grants amounting to 21.6 billion USD. Establishedin 1966, it is owned by 68 members - 49 from the region./.
