Facility seeks to address looming power shortage in Southeast Asian nation in sustainable manner
The Asset
The South East Asia Clean Energy Facility (SEACEF), a collaboration of international foundations seeking to accelerate the low-carbon transition in Southeast Asia, has invested at the development phase of a floating solar and storage project in Dong Nai province in southeastern Vietnam.
The project, under development by Blueleaf Energy, comprises a floating solar and storage peaking plant with a target capacity of 500Mp with battery energy storage system (BESS) of up to 200MWh capacity.
By investing in the project, SEACEF, which is managed by Singapore fund manager Clime Capital, aims to demonstrate that there is an alternative to locking in thermal capacity in Vietnam through a cost-competitive and environmentally sustainable solutions.
The project is designed to have the capability to provide mid-merit and peaking power that would traditionally be provided by unsustainable or fossil-fuel sources. Through the introduction of energy storage, the project allows the country’s dominant power utility Vietnam Electricity (EVN) to accommodate increased renewable energy capacity while also reducing stress on its power grid system. The project is expected to avoid an average of 372 kilotonnes of carbon dioxide (ktCO2) emissions per year over a 25-year lifetime and a maximum of 412 ktC02 if the battery uses solar generation to displace peaking diesel generation.
Blueleaf Energy chief executive office Sol Proops says: “SEACEF’s early-stage investment into the Dong Nai project has been crucial in our ability to continue to progress development of this large and important infrastructure project that should serve as a template for other floating solar and storage opportunities in Southeast Asia.”
Clime Capital CEO Mason Wallick adds: “Vietnam’s Power Development Plan for 2021 to 2030 may include significant thermal power capacities to address an impending power shortage as economic growth drives electrical demand. We believe advanced technologies like solar and storage peaking plants can help address Vietnam’s power shortage issues in a cost-effective sustainable manner.”