The Emerging Africa & Asia Infrastructure Fund (EAAIF) is making waves in Vietnam's renewable energy sector with its recent $20 million investment to support the development of commercial and industrial rooftop solar projects through CME Solar, one of the country's prominent solar energy providers. This strategic funding is expected to double CME Solar's capacity to 260 megawatts, aligning with Vietnam's ambitious goal to significantly reduce its reliance on fossil fuels.
With coal accounting for nearly 45 percent of Vietnam's energy supply, the need for a swift transition to renewable sources is pressing. The Vietnamese government has announced plans for renewable energy to constitute 39 percent of its energy mix by 2030. "The transition of Vietnam’s manufacturing sector to solar energy will significantly reduce carbon emissions in the country, supporting the sector’s green growth and economic dynamism," remarked Esther Chan, Director at Ninety One, which manages EAAIF. This investment is part of EAAIF’s broader strategy to mobilize capital for transformative infrastructure projects across Asia.
CME Solar's significant portfolio of energy projects is particularly timely. Established to bring sustainable and cost-effective clean energy solutions to businesses across Vietnam, CME Solar operates over 130 MWp and plans to scale these efforts dramatically with EAAIF's backing. Chung Dieu Tuan, CEO of CME Solar, stated, "This investment marks a pivotal moment for the firm, enabling it to strengthen its position amid recent government regulations aimed at stimulating the development of the commercial and industrial solar energy sector." CME Solar’s ability to capture market needs showcases its commitment to achieving global standards of operation.
At the same time, another significant player, Marubeni Green Power Vietnam, recently launched a 1.8MW/3.7MWh lithium-ion battery storage system, also aiming to optimize energy costs. The project was inaugurated at VinPearl's resort location, marking what representatives claim is the first battery energy storage project leveraging third-party investment to cut electricity costs for private customers. The model will allow Marubeni to charge and discharge battery capacity according to electricity rates, oxygening VinPearl's shifts toward integrating renewable energy sources.
The collaboration between Marubeni and VinGroup dovetails with Vietnam’s overarching energy transition agenda illustrated by the government’s recent Master Plan overhaul. Following the establishment of the battery factory, which focuses on lithium iron phosphate battery technologies, the industry players are well-positioned to contribute to the government’s vision of solar energy enhancing not only local business operations but also the national grid. Vietnam already leads Southeast Asia with over 18GW of solar PV installations, primarily driven by generous subsidies for commercial and industrial solar projects.
Despite the growing capacity, obstacles remain. The lack of mechanisms to integrate and utilize the increased solar energy on the grid has led to substantial curtailment of resources, adversely affecting the optimization of solar technologies. To combat this, Vietnam’s Eighth National Power Development Plan emphasizes increased battery storage and pumped hydro deployment, setting targets of 300MW for energy storage systems and 2,400MW for pumped hydro by 2030.
All these initiatives spotlight Vietnam’s extensive potential for energy transformation supported by innovative and foreign investment. EAAIF’s role as a blended finance vehicle exemplifies how notable global players can mobilize limited resources toward pressing infrastructure and energy goals. The fund aims to play a significantly more strategic part as the energy sector evolves to meet climate goals, create jobs, and improve overall economic stability.
The steps taken by Vietnam, backed by international investors, herald the dawn of a new chapter aimed at achieving not only national sustainability targets but also aligning with global climate agreements. These partnerships are pivotal, as they provide the necessary capital to propel the development of renewable energy projects—ensuring Vietnam emerges as a leader among manufacturing hubs embracing green energy.