Dak Lak attracts $3.3 billion investment in solar projects

The central highlands province of Dak Lak has granted licences and signed memoranda of understanding (MOUs) with several companies this month for the development of solar projects worth US$3.3 billion.

Vietnamese Government is looking to increase the use of renewable energy to address environmental issues and the rising scarcity of power resources. - Photo solarapac.org

US power group AES Corporation has signed an MOU to invest $750 million in a solar factory, which will have the capacity to generate 300 to 500 megawatts (MW).

Licences were also granted to two companies, a Vietnamese one and a foreign firm.

Viet Nam’s Xuan Thien Company Limited will invest $2.2 billion in a 2,000MW solar project in the region.

South Korea‘s SolarPark Company Limited has been given the licence to build a $45 million solar plant in the province. Last year, it had signed an MOU for a $600 million to $1 billion solar power plant project, to be built over 40 years, from 2016 to 2056. The project will be constructed at Ea Sup Thuong Lake in Ea Sup District and will have a production capacity of 300MW to 500 MW.

In addition, Viet Nam’s Long Thanh Infrastructure Development and Investment Company plans to invest $308 million in a 250MW solar installation in the country.

At present, Viet Nam relies mostly on coal-fired and hydropower plants to meet its demand for electricity, which is growing at a pace of 11 per cent per annum. The Government is looking to increase the use of renewable energy to address environmental issues and the rising scarcity of power resources.

Indonesia, Thailand and Viet Nam are seeking solutions to secure solar power and setting targets to stimulate green energy generation when global agreements to limit pollution come into effect.

Source VNS