The Asian Development Bank (ADB) and GreenYellow Smart Solutions Vietnam Co. Ltd. (GreenYellow), have signed a loan agreement of up to $13.8 million for rooftop solar photovoltaic (PV) systems to contribute to increase the supply of clean and affordable energy for Vietnam’s commercial and industrial consumers.
The loan will support the development and operation of rooftop solar photovoltaic systems at commercial and industrial companies across the country.
The financing package comprises a $3 million A loan from ADB’s regular capital resources and parallel $10.8 million loans from FMO, a climate fund managed by responsAbility Investments AG, and Societe Generale , with the ADB as the authorized lead organizer.
A $3 million grant will also be awarded from the Climate Innovation and Development Fund (CIDF), administered by the ADB.
The grant will help attract an international commercial bank to address two critical obstacles in financing solar assets with a long economic life in Vietnam: the lack of long-term dong financing at a fixed interest rate and potential volatility of the exchange rate between the dong and the US dollar.
“As the Asia-Pacific climate bank, ADB is increasingly focused on mobilizing private capital to finance renewable energy projects that the region urgently needs,” said ADB Director General of Private Sector Operations Suzanne Gaboury.
“Rooftop solar PV offers an efficient way for Vietnam to deploy substantial amounts of additional renewable energy capacity, while providing reliable, low-cost energy to consumers, helping to attract and retain business and improve competitiveness.” “Vietnam Global.”
This is the first time ADB has financed a rooftop solar PV portfolio for the commercial and industrial segment in Vietnam. Rooftop solar is an emerging form of renewable energy supply in Vietnam and its adoption in this sector has been hampered by high upfront costs and limited financing channels.
With a total planned installed capacity of up to 32.3 megawatts at its peak, this project is set to increase the supply of clean energy to the sector by at least 31.5 gigawatt-hours annually, reducing 15,530 tons of carbon dioxide emissions by 2025.
“Our collaboration with ADB fits perfectly with our corporate mission to innovate in energy distribution and drive the energy transition,” said Sebastien Prioux, CEO of GreenYellow Vietnam.
“ADB’s instrumental role in fostering connections between like-minded partners is critical to our collective journey in actively advancing sustainable development.”
The CIDF is a blended financing facility managed by ADB, established in September 2021 with an initial philanthropic commitment of $25 million from Bloomberg Philanthropies and Goldman Sachs.
The fund has the potential to unlock up to $500 million in investments from the private sector and governments to support sustainable, low-carbon economic development.
Founded in 2007, GreenYellow is a French partner for the energy transition, specializing in decentralized solar photovoltaic production and energy efficiency, storage and monitoring services.
It currently operates in 16 countries in Asia, Africa, Europe and South America, and entered Vietnam in 2019. GreenYellow is responsible for the development, financing and operation of infrastructure projects, enabling its clients to produce local and competitive green energy, reduce its energy consumption and accelerate its decarbonization.
Source: https://reporteasia.com/negocios/2023/09/12/el-adb-y-greenyellow-firman-un-acuerdo-sobre-energia-solar-para-tejados-comerciales-e-industriales-en-vietnam/
