VinaCapital arm sets up solar power JV with industrial parks developer SAIGONTEL

SkyX Solar, a subsidiary of Vietnam-based asset manager VinaCapital, has joined forces with industrial park infrastructure and telecoms service provider SAIGONTEL to form a joint venture to develop rooftop solar projects in the country.
SkyX Solar will have a majority stake in the joint venture and will be responsible for the development of the projects, according to a statement.
The projects will be built for facilities within the industrial parks affiliated with SAIGONTEL. Initially, the JV will focus on 10 industrial parks to develop and operate more than 50 MW of rooftop solar assets.
Six of these industrial parks are in the central and south regions of Vietnam which have the highest irradiation levels.
The joint venture will offer an end-to-end renewable energy solution to creditworthy client partners which entails zero capex and operational expenditure from them.
“Rooftop solar, especially for the commercial and industrial (C&I) segment, will be a game-changer for the renewable power sector in Vietnam,” commented Samresh Kumar, executive chairman of SkyX Solar and a managing director at VinaCapital. “This partnership is a strong milestone in our journey to 150MW+ development in Vietnam over the next three years.”
SAIGONTEL’s parent firm, SGI Group, owns and operates a spate of industrial parks across Vietnam. Nguyen Cam Phuong, CEO of SAIGONTEL, said that the new business will help its partners and customers of the industrial parks reduce carbon footprint and achieve significant cost savings.
“The rooftop solar power market in Vietnam is witnessing significant demand as leading companies increasingly focus on sustainability and managing rising electricity prices,” the companies said, adding that more than 4,000 MW of rooftop solar power will be developed in the next five to seven years in the country.
Dutch development bank FMO is considering a $6.5-million investment in Ho Chi Minh City-based TTC Energy to help it execute solar power initiatives after the Asian Development Bank and other stakeholders committed a $37.8-million loan for the Vietnamese company.
Other investments in the sector include Filipino AC Energy’s financing in BIM Group, Aboitiz Power Corp’s takeover of Mekong Wind, and International Finance Corporation’s and Armstrong S.E. Clean Energy Fund’s investment in Phong Dien, among others.