ACWA Power and FECON Develop Renewable Energy Projects in Vietnam

On July 3rd, ACWA Power Energy Corporation from Saudi Arabia and FECON JSC have signed Memorandum of Understanding on cooperation to develop renewable energy projects in Vietnam.

According to the national electricity development plan and the renewable energy development strategy of Vietnam, the Vietnam Government prioritizes the mobilization of all resources to develop renewable energy, increasing the rate of electricity produced from renewable energy sources (excluding medium and large hydropower), account for 7% by 2020 and above 10% by 2030. In which, wind and solar power are areas of great concern. Along with the above strategy, many incentives and support mechanisms are being built and perfected to attract investors in this field.

Recognizing this potential, ACWA Power (Saudi Arabia) decided to choose Vietnam as the first and strategic country in Southeast Asia to invest in renewable energy projects. ACWA Power is a developer, investor, operator and co-owner of a portfolio of power plants in 12 countries in the Middle East, North Africa, South Africa and Southeast Asia. Particularly in the Middle East, ACWA Power is a developer of electricity and water in the top 2 of region.

ACWA Power’s portfolio is valued at over 30.5 billion USD, with a total generating capacity of 21.5 GW.

According to the Memorandum of Understanding, FECON and ACWA Power will jointly study and evaluate the opportunities and potential of renewable energy investment in Vietnam. Particularly wind and solar power projects in some provinces in the Southern of Vietnam such as Binh Thuan, Ninh Thuan… Then, the two sides will set up joint venture company to invest in specific projects.

Furthermore, according to CEO of ACWA Power, Vietnam is the perfect place for investors to invest and develop renewable energy projects in the coming time. The investment potential in Vietnam is huge due to the increasingly cheaper technology cost, with the advantage of resources, the local partner ‘s understanding and the advantages of modern technology and capital. The cooperation between the two sides will certainly go to success. ACWA Power’s CEO also expects the Government of Vietnam will to continue to support and license the projects of this Corporation when they expanding investment in Vietnam in the future.