Singapore’s energy provider, SP Group, pledged to pour SGD750 million, or VND12 trillion (US$539 million), into sustainable energy projects in Vietnam by 2025, heard a press briefing on Wednesday.
Stanley Huang, chief executive officer at SP Group, committed to helping Vietnam achieve net-zero emissions by 2050.
“Vietnam is one of the group’s key markets. We feel encouraged by the Vietnamese government’s clear orientation in the next 10-20 years,” said Huang.
According to the representative of SP Group, the group is set to support Vietnam’s effort through numerous sustainable energy projects across the country and via agreements in the commercial and industrial fields with its partners.
In specifics, SP Group has targeted a capacity of 1.5 GW of rooftop solar energy until 2025, with its subsidiaries pledging to provide 1,000 MW of renewable power in Vietnam.
The goal is entirely feasible despite only some 2.5 years left, Huang stated.
“Seriously speaking, we think that the demand for rooftop solar energy will continue to jump, at least at the same pace as the growth of gross domestic product (GDP) with the minimum level of 6-7 percent per year. As such, I suppose that the target of 1,000 MW in 2025 is achievable,” Huang said.
According to Brandon Chia, Southeast Asian and Australian regional director for sustainable energy solutions at SP Group, SGD750 million is the initially-estimated figure geared up for the above-mentioned goal in 2025.
“After 2025, our ambition might be bigger, with targets able to be directly proportional to the market’s growth,” Chia said, adding that the investment will also proliferate as SP Group expects to develop a strong attachment to the Vietnamese market in the long run.
Efficient use of energy
Huang affirms that the district cooling system, which aims to cool clusters of buildings through a network of pipes, will work well to help Vietnam lower net emissions.
The system has helped Singapore’s Marina Bay save 30 percent of energy and reduce 20,000 tons of carbon emissions each year, equivalent to the suspension of 18,000 cars, according to SP Group.
The group is seeking a project marked with the symbol of Vietnam to make it a stepping stone for its expansion and development in the market.
“If we came sooner, we could cooperate with the developer of the Landmark 81 building to employ the district cooling system,” stressed Huang.
In addition, he also asserts that both supply and demand management plays a key role in net emission reduction.
“We often focus on supply management, however, demand management is also extremely important. We should not only encourage the application of technology to cut the consumption of power, but also accelerate the efficiency of energy use,” he affirms.
SP Group, which is the operator of Singapore’s national power grid and one of the Asia-Pacific region’s leading electricity firms, started entering Vietnam under the name of SP Energy Vietnam in February 2021.
In late March this year, Ho Chi Minh City Power Corporation worked with representatives of SP Group to deploy a smart power network in Ho Chi Minh City.
SP Group is partnering with BCG Energy under BCG Group and CJ ONS, a subsidiary of South Korea’s CJ OliveNetworks in Vietnam.