REE’s subsidiary receives $57mln IFC loan for wind power development
Construction begins on Loi Hai 2 Wind Power PLant in Ninh Thuan province. Photo: IFC
According to IFC, the package is expected to support Vietnam’s transition to cleaner low-carbon power generation, helping to meet the country’s growing demand for electricity. The capital will enable the construction of two onshore wind power plants Phu Lac 2 in Binh Thuan province and Loi Hai 2 in Ninh Thuan province.
With a total capacity of 54.2 megawatt, the plants will generate about 170 million kilowatt hours of clean energy per year once they start operating later in 2021.
Founded in 2009, the wind power company, developed one of the first wind power plants in Vietnam, the 24-MW Phu Lac 1 plant in Binh Thuan province. With a large pipeline of wind and solar power projects, financing package from IFC will help the company channel that renewable energy potential into operation.
The IFC’s support is expected to help the power firm to implement a strategic drive to green. By agreeing to implement IFC’s financial, environmental, and social requirements, REE confirms its readiness and willingness to contribute to Vietnam’s renewable energy development, said Nguyen Ngoc Thai Binh, REE Deputy Chief Executive Officer.
The wind power sector in Vietnam is still in its nascent stage but has very large-scale potential. IFC’s engagement will demonstrate viability to investors and help mobilize the much-needed funding to help realize Vietnam’s cleaner, renewable energy potential, said Kyle Kelhofer, IFC’s Country Manager for Vietnam, Cambodia, and Lao PDR.
Driven by robust economic growth, Vietnam foresees the need for a twofold expansion of its installed power capacity by 2030 to meet increasing electricity demand. Renewable energy capacity including rooftop solar is projected to increase by approximately 19 GW to more than 36 GW over the coming decade, at an estimated cost of around $20 billion, mostly expected to be developed and funded by the private sector.
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