Malaysia-based Leader Energy Holding Berhad has partnered with HSBC Bank (Vietnam) Ltd. to advance alternative energy solutions in Vietnam. Known as the “Vietnam Solar Project,” this collaboration aims to provide affordable financing for installing solar systems in local communities. The partnership has already secured a $23.32 million (593 billion Vietnamese Dong) financing deal to fund Leader Energy’s commercial solar project development across the country.
Overview of the Vietnam Solar Project
At the heart of the Vietnam Solar Project is the Vinh Hao 6 (VH6) solar power plant in Binh Thuan province. VH6, a commercial solar power plant, began operations in 2019 with a capacity of 50MW and an annual electricity output of 83,000 MWh. The electricity it generates is fed into the EVN grid under a 20-year power purchase agreement (PPA) with a FiT of 9.35 cents per kWh.
Vinh Hao 6 (VH6) solar power plant.
Beyond its significant contribution to Vietnam’s renewable energy landscape, the VH6 plant plays a crucial role in reducing carbon emissions. It eliminates approximately 75,131 tons of CO2 annually, aligning with Vietnam’s commitment to achieve net-zero greenhouse gas emissions by 2050—a goal set during COP26 in 2021. The success of VH6 underscores Vietnam’s capacity to harness its abundant natural resources for green energy production.
HSBC Vietnam was instrumental in financing the Vietnam Solar Project, acting as both lender and mandated lead arranger. The bank provided a seven-year committed term loan to refinance VH6, reflecting the strong financial backing and long-term growth commitment of Leader Energy. Jenny Ng, Group Chief Financial Officer of Leader Energy, highlighted the trust and confidence that investor partners have placed in the company’s financial management and performance.
Expanding Renewable Energy Portfolio
Leader Energy’s acquisition of VH6 marks a significant milestone in its commitment to expanding renewable energy projects in Vietnam. The company aims to exceed 500MW of renewable energy assets in the country, contributing to the global effort to combat climate change by promoting a sustainable transition to renewable sources.
Ahmed Yeganeh, Country Head of Wholesale Banking at HSBC Vietnam, emphasized the role of financial services in unlocking Vietnam’s renewable energy potential. He noted that this collaboration between HSBC Vietnam and HSBC Malaysia exemplifies ASEAN connectivity, enabling major initiatives like the Vietnam Solar Project to thrive.
The Vietnam Solar Project serves as a powerful example of how renewable energy can drive sustainable development in the region. By leveraging international partnerships and strategic financial support, projects like VH6 facilitate Vietnam’s energy transition while contributing to global climate change mitigation efforts.
Beyond generating clean energy, the Vietnam Solar Project fosters economic growth in local communities. Affordable and reliable solar power supports small businesses, agricultural developments, and new employment opportunities in system installation and maintenance. This community-based approach also educates residents on the benefits of solar energy, promoting a culture of self-reliance and innovation.
Expanding the Reach of Vietnam Solar Projects
The success of the Vietnam Solar Project could inspire additional renewable energy initiatives in Vietnam and potentially other Southeast Asian countries. Leader Energy’s experience with VH6 positions the company to scale its solar energy footprint across the region. As these projects expand, they offer replicable solutions for other countries facing similar energy challenges.
The Vietnam Solar Project represents Leader Energy’s first greenfield initiative, signaling the company’s commitment to expanding its renewable energy portfolio. The Vinh Hao 6 solar power plant not only boosts energy production but also contributes to Vietnam’s goal of becoming a net-zero emissions country by 2050. Projects like VH6 are leading the way in developing resilient and effective renewable energy solutions for the future.
