ADB and GreenYellow Partner to Expand Commercial and Industrial Rooftop Solar in Vietnam

October 2023

The Asian Development Bank (ADB) and GreenYellow Smart Solutions Vietnam Co., Ltd. (GreenYellow) have inked a loan agreement, totaling USD 13.8 million, to facilitate the installation of rooftop photovoltaic (PV) solar systems. This initiative aims to boost the availability of clean and affordable energy for commercial and industrial consumers in Vietnam.

The loan will provide crucial support for the establishment and operation of solar PV systems situated on the rooftops of commercial and industrial enterprises throughout the country. The financial package encompasses a USD 3 million ADB loan from its ordinary capital resources, along with USD 10.8 million in parallel loans from FMO, a climate fund managed by responsAbility Investments AG, and Societe Generale, with ADB acting as the lead arranger.

Additionally, a USD 3 million grant from the Climate Innovation and Development Fund (CIDF), administered by ADB, will be allocated. This grant plays a key role in encouraging international commercial banks to invest by addressing two critical financing obstacles for solar assets with a long economic lifespan in Vietnam: the scarcity of long-term VND funding at a fixed interest rate and the potential fluctuations in the VND-to-USD exchange rate.

Rooftop solar PV offers an efficient means for Vietnam to enhance its renewable energy capacity significantly, thereby providing cost-effective and reliable energy to consumers. This, in turn, enhances the nation’s global competitiveness and attracts and retains businesses. This represents ADB’s first foray into financing a solar PV rooftop portfolio targeting the commercial and industrial sectors in Vietnam.

While rooftop solar is an emerging facet of renewable energy supply in the country, it has faced challenges due to high upfront costs and limited financing avenues. With an expected peak installed capacity of 32.3 megawatts, this endeavor is poised to augment clean energy supply to the sector by at least 31.5 gigawatt-hours annually, ultimately reducing carbon dioxide emissions by 15,530 tons by 2025.

(Source: ABD, Power-Technology)

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