International Finance Corporation (IFC) is providing US$57 million for a private company to develop two wind power plants scheduled to come on stream in Vietnam later this year, the IFC said in a press release on Wednesday.

A member of the World Bank Group, the corporation is the largest global development institution focused on the private sector in emerging markets.

As Vietnam transitions to cleaner low-carbon power generation to help meet the country's growing demand for electricity, the IFC said it was funding the development and construction of two wind power projects in south-central Vietnam.

The corporation is supplying a financing package of $57 million to Thuan Binh Wind Power Joint Stock Company (TBW), a subsidiary of Refrigeration Electrical Engineering Corporation (REE).

This will enable the construction of two onshore wind power plants — Phu Lac 2 in Binh Thuan Province and Loi Hai 2 in Ninh Thuan Province — with a total capacity of 54.2 megawatts.

The plants will generate about 170 million megawatt hours of clean energy per year once they start operating later in 2021.

A dedicated wind power company founded in 2009, TBW developed one of the first wind power plants in Vietnam — the 24-MW Phu Lac 1 plant in Binh Thuan.

With a large pipeline of wind and solar power projects, the financing package from the IFC will help the company channel that renewable energy potential into operation.

The IFC funding includes financing mobilized by the multi-investor Managed Co-Lending Portfolio Program (MCPP), managed by the corporation's innovative syndications platform, which allows institutional partners to commit funds to a set of future IFC loans.

"As REE expands its footprint in renewable energy, we are looking for long-term U.S. dollar-based financing that is not readily available in the local market,” Nguyen Ngoc Thai Binh, deputy CEO of the company, was quoted as saying in the press release.

“We are confident that IFC's support will help us implement a strategic drive to green our power sector portfolio in the coming years.

“By agreeing to implement IFC's financial, environmental, and social requirements, REE confirms its readiness and willingness to contribute to Vietnam's renewable energy development.”

Leveraging its global experience in wind projects, the IFC will help ensure that these two projects follow the best industry as well as environmental, social, and governance practices.

"The wind power sector in Vietnam is still in its nascent stage but has very large-scale potential,” said Kyle Kelhofer, the IFC country manager for Vietnam, Cambodia, and Laos.

“IFC's engagement will demonstrate viability to investors and help mobilize the much-needed funding to help realize Vietnam's cleaner, renewable energy potential.

"IFC is especially committed to supporting solid local corporates such as REE to scale up their renewable energy investments, supporting the country's transition to a lower-carbon electricity generation mix."

Driven by robust economic growth, Vietnam foresees the need for a twofold expansion of its installed power capacity by 2030 to meet increasing electricity demand.

Renewable energy capacity including rooftop solar is projected to increase by approximately 19 GW to more than 36 GW over the coming decade, at an estimated cost of around $20 billion, mostly expected to be developed and funded by the private sector.

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