SK Ecoplant to Develop 700MW Solar and Wind Power Projects in Vietnam

SK ecoplant is partnering with Vietnam's leading renewable energy company Bamboo Capital Group Energy (BCGE) to develop solar and wind power projects with a total capacity of 700MW.

On the 22nd, SK ecoplant announced that it signed a Memorandum of Understanding (MOU) for joint cooperation and development of renewable energy projects in Vietnam with BCGE at its headquarters in Susong-dong, Jongno-gu, Seoul. The signing ceremony was attended by Kim Jeong-hoon, Head of SK ecoplant Solution BU, and Pham Minh Tuan, President of BCGE, along with other representatives from both companies.

BCGE is a Vietnamese renewable energy company currently developing and operating solar power plants with a capacity of approximately 600MW. The scale of wind power projects under development exceeds 800MW.

Through this agreement, the two companies will jointly develop renewable energy projects totaling 700MW, including 300MW of onshore wind power, 300MW of rooftop solar power, and 100MW of onshore solar power. The projects also include the Gia Lai wind power project located in the central highlands of Vietnam, an area rich in wind resources. They will also explore other high-potential renewable energy projects.

SK ecoplant plans to participate in the projects from the development stage and secure carbon emission credits. In 2021, SK ecoplant completed registration of a Clean Development Mechanism (CDM) project under the United Nations Framework Convention on Climate Change (UNFCCC) in Vietnam. CDM is a mechanism to obtain carbon credits from the UN based on the amount of greenhouse gas reduction achieved through implemented projects. These carbon credits can be used to offset greenhouse gas emissions or sold to other companies.

Vietnam continues to experience high growth, with energy demand increasing by more than 10% annually. Recently, there has been a trend toward increasing investment in renewable energy instead of fossil fuels. In May last year, the country announced plans to accelerate the transition to renewable energy such as solar and wind power through its national power development plan. In particular, rapid development is expected with a focus on wind power by 2030.

According to the Korea Trade-Investment Promotion Agency (KOTRA), Vietnam's renewable energy generation capacity has increased more than fourfold from about 5.2GW in 2019 to approximately 21.6GW last year. Geographically, Vietnam's low latitude provides abundant sunlight, resulting in high solar power efficiency. Additionally, the long coastline with average annual wind speeds exceeding 5m/s and numerous coastal islands are evaluated to have great potential for wind power generation.

SK ecoplant contributes to global carbon reduction based on its value chain, which spans from renewable energy project development including solar and wind power to equipment manufacturing and EPC (Engineering, Procurement, and Construction). In August last year, it was a key player in the Concho solar project in Texas, USA, and in February this year, it signed a Power Purchase Agreement (PPA) to directly supply electricity generated from a 100MW renewable energy power plant to SK Hynix.

Kim Jeong-hoon, Head of SK ecoplant Solution BU, said, “The diverse experience and expertise in engineering and renewable energy solutions that SK ecoplant possesses will contribute to utilizing Vietnam’s abundant renewable energy resources. We plan to lead efforts to address climate issues and contribute to global carbon reduction based on the renewable energy value chain.”

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