SK Ecoplant signed the memorandum of understanding on Vietnam renewable energy business joint cooperation and development with BCGE at its headquarters in Seoul on March 22.
Representatives from both companies, including Kim Jeong-hoon, SK Ecoplant Solution BU representative, and Pham Minh Tuan, President of BCGE, attended the signing ceremony.
BCGE, a member of Bamboo Capital Group, is currently developing and operating solar power plants totaling approximately 600MW. The scale of wind power generation under development is also estimated at 800MW.
Through this agreement, the two companies will embark on the joint development of 700MW of renewable energy projects, including 300MW of onshore wind, 300MW of rooftop solar, and 100MW of ground-mounted solar.
This includes wind power generation projects in Gia Lai province, which is rich in wind resources. They will also explore other high-potential renewable energy projects.
SK Ecoplant plans to participate in projects from the business development stage and also aims to secure carbon emission rights.
SK Ecoplant completed the registration of Clean Development Mechanism (CDM) projects under the United Nations Framework Convention on Climate Change in Vietnam in 2021.
CDM is a mechanism for securing carbon emission rights from the UN based on the achievements of greenhouse gas reduction projects. The secured carbon emission rights can offset greenhouse gas emissions or be sold to other companies.
Vietnam is an emerging economy with sustained high growth, experiencing an annual increase in energy demand of over 10 per cent. There is a recent trend towards increasing investment in renewable energy instead of fossil fuels.
Last May, Vietnam announced plans to accelerate the transition to renewable energy, particularly focusing on wind power and solar energy, through its national power development plan. Wind power generation is expected to be rapidly developed, especially until 2030.
According to KOTRA, Vietnam's renewable energy generation capacity has increased more than fourfold from around 5.2GW in 2019 to approximately 21.6GW last year.
