Vietnam, Saudi Arabia firms partner to develop renewable energy

FECON Corporation and ACWA Power, a Saudi Arabian company, signed on July 3 a memorandum of understanding (MoU) on cooperation to develop renewable energy projects in Vietnam.

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A FECON representative said Vietnam is the first Southeast Asian nation that ACWA Power chooses to invest in renewable energy projects.

Under this MoU, the two sides will study and evaluate opportunities in and potential for renewable energy investment, especially wind and solar power projects, in some southern central provinces such as Binh Thuan and Ninh Thuan. After that, they will set up a joint venture to make investment.

The partnership with ACWA Power is part of the Vietnamese firm’s road map to become a leading infrastructure business by 2020, according to the FECON representative.

ACWA Power is a developer, investor, operator and co-owner of electricity plants in 12 countries in the Middle East, North Africa, South Africa and Southeast Asia.

In Vietnam, it formed a joint venture with the Republic of Korea’s Taekwang Group to invest 2.3 billion USD in a thermal power factory in Nam Dinh province.

According to Vietnam’s national electricity development plan and renewable energy development strategy, the country aims to raise the rate of electricity produced by renewable energy sources, excluding big and medium hydropower and pumped storage hydropower, to 7 percent by 2020 and over 10 percent by 2030, with a focus on wind and solar power.

The country is also offering a number of incentives for investors in this field.