Southeast Asia’s Largest floating Solar Plant Signs $37mn ADB Loan
The Asian Development Bank (ADB) today signed a $37 million loan agreement with Da Nhim–Ham Thuan–Da Mi Hydro Power Joint Stock Company (DHD) to finance the installation of a 47.5 Megawatt (MW) floating photovoltaic (PV) solar powerfacility on the man-made reservoir of DHD’s existing 175 MW Da Mi hydropower plant.
The project marks the first large-scale installation of floating solar PV panels in Viet Nam and the largest installation in Southeast Asia. “This project will help to boost the share of renewable energy in Viet Nam’s overall energy mix and decrease the dependence on imported fossil fuels such as coal,” said ADB Private Sector Operations Department Deputy Director General Christopher Thieme.
He added that the pairing of the two clean energy technologies — hydropower and solar — is a simple but innovative achievement, which can be replicated elsewhere in Viet Nam and across Asia and the Pacific.
DHD is a subsidiary of the Viet Nam Electricity (EVN) Power Generation Corporation 1 and 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 generation capacity is 642.5 MW, about 1.7 per cent of Viet Nam’s total generation capacity.
“We are proud to be the first company in Viet Nam to construct a floating solar power plant on a hydropower reservoir. This project aligns with DHD’s strategy of investing in renewable energy to decrease dependence on fossil fuel, contribute to energy security, mitigate climate change, and promote environmental protection and sustainable socioeconomic development,” said Nguyen Trong Oanh, the Chairman of the Board of DHD.
The financing package includes a $17.6 million loan from ADB’s ordinary capital resources. This is supplemented by $15 million of blended concessional co-financing provided by the Canadian Climate Fund for the Private Sector in Asia and its follow-on fund, the Canadian Climate Fund for the Private Sector in Asia II.
These funds were established by the Government of Canada to encourage private investment in climate change mitigation and adaptation projects in Asia and the Pacific. The package also includes a $4.4 million parallel loan from the Leading Asia’s Private Infrastructure Fund (LEAP), supported by Japan International Cooperation Agency through a $1.5 billion equity commitment.
Established in 1966, ADB is owned by 68 members — 49 from the region. The bank made commitments of new loans and grants amounting to $21.6 billion in 2018.