Norsk Renewables has built 11 MW in Vietnam for Central Retail – one of the biggest supermarket chains in the country – making their transition to renewable energy effortless. 10 supermarkets have gotten their roof covered by solar panels, producing around 14000 kWh a year.
The financing was done together with Norfund and Finnfund through the Nordic Impact Cooperation (NIC).
Vietnam is leading the transition to clean energy in Southeast Asia and is a bright spot in the transition to renewable power in the region and an important hub for Norsk Renewable going forward.
Norsk Renewables is excited about the transition and will do our best to support old and new clients in the years to come.
The share of electricity generated by solar in Vietnam increased from practically nothing to nearly 11% in a few years. Not only was this a faster rate of increase than almost anywhere else in the world but in 2020 Vietnam had become the world’s tenth-biggest producer of solar power. Underscoring his country’s commitment to the energy transition, Pham Minh Chinh, Vietnam’s prime minister, vowed in November 2023 to stop building new coal-powered plants and to reduce his country’s emissions to net zero by 2050. This is followed up now with Vietnam’s long-awaited Power Development Plan VIII (PDP8) that has recently been approved (2023), setting ambitious renewable-energy goals for 2030. These goals are focused on boosting renewable energy while reducing the country’s reliance on coal.
Some points about Vietnam:
Rapid Economic Growth: Vietnam has been experiencing significant economic growth in recent years, leading to an increased demand for energy. As the economy expands, the need for sustainable and reliable energy sources becomes crucial, making renewable energy a compelling investment.
Increasing Energy Demand: The demand for energy in Vietnam is rising steadily due to industrialization, urbanization, and a growing population. Renewable energy investments can help meet this demand while contributing to the country's energy security.
Government Support: The Vietnamese government has shown a strong commitment to developing renewable energy, with emphasis on rooftop solar energy for self-consumption. Policies and incentives, such as tax incentives, and other supportive measures, encourage private investment in the sector.
Abundant Renewable Resources: Vietnam has abundant renewable energy resources, especially solar in the south. The country's geographical location allows for significant solar and wind potential, making it an ideal location for solar and wind power projects.
Strategic Location: Vietnam's strategic location in Southeast Asia makes it an attractive market for investors looking to establish a regional presence. It serves as a gateway to the ASEAN market, offering opportunities for cross-border collaboration and energy trading.
Energy Security Concerns: Vietnam has historically relied heavily on fossil fuels, making it vulnerable to energy security risks. Diversifying the energy mix with renewable sources enhances energy security and reduces dependence on imported fossil fuels.
Climate Change Mitigation: As concerns about climate change grow globally, there is an increasing emphasis on transitioning to cleaner and more sustainable energy sources from private energy off-takers. Vietnam's commitment to reducing greenhouse gas emissions aligns with global efforts to mitigate climate change, making it an attractive market for environmentally conscious investors and manufacturers.
International Collaboration: Vietnam actively seeks international collaboration and investment in its renewable energy sector. This openness to foreign investors enhances the global appeal of the market and fosters partnerships that can contribute to the sector's development.