EDP enters Vietnam with solar energy project
The contract for the acquisition of a 28MW project with Trina Solar, worth 30 million euros, represents the group's first step towards establishing a presence in Asia. With this investment, EDP is now operating in 22 countries.
EDP Renováveis, the renewable energy company of the EDP group, signed a contract with Trina Solar, one of the world's leading manufacturers of photo-voltaic and intelligent energy solutions, to acquire a 28 MWac (35 MWdc) photo-voltaic solar energy project, totaling 30.3 million euros.
The Trung Son photo-voltaic solar energy project, located in Khanh Hoa Province, Vietnam, has been in operation since December 2020 and has a Power Purchase Agreement (CAE) signed with Vietnam Electricity (EVN), at a tariff of 20-year acquisition (FiT).
Vietnam is one of the fastest growing economies in Southeast Asia, with energy demand increasing by around 10% per year in this market. Thermal energy represents around 50% of the total installed capacity and energy dependence has increased significantly in the country, with net imports currently around 30% of total energy demand.
Entering Vietnam is part of the EDP Renováveis Business Plan for 2021-25 and represents the first step towards establishing its presence in Asia. The company will continue to invest in expanding into new geographies as a part of its 20GW growth plan until 2025, further strengthening its position as the global leader in renewable energies.
The transaction has already been signed and concluded, increasing the number of markets in which the EDP group is present to 24, and the total number of geographies where EDP Renováveis already has operations to 17.
"The agreement we reached to enter the Vietnamese market is a big step towards consolidating our presence in the Asia-Pacific region and, thus, further strengthening our global leadership position. Vietnam is a country that offers great opportunities, it is one of the fastest growing economies in Southeast Asia and it also needs to progressively reduce its energy dependence. Thanks to this new milestone, the EDP group reinforces its commitment to being a carbon-free company by 2025", says Miguel Stilwell de Andrade, CEO of EDP and EDP Renováveis.