The Norwegian renewable energy company SN Power and the International Finance Corporation (IFC) have entered into a cooperation agreement that will allow them to help develop sustainable hydro power projects in Vietnam.
Vietnam’s economy has grown rapidly since the start of the country’s liberalization policies. However, the electricity supply has not been able to meet the growing demand. Vietnam now faces recurrent blackouts, which pose a threat to future growth and make the need for more reliable power urgent.
“This IFC partnership will allows us to find viable hydropower projects and subsequently develop and operate them in a sustainable manner. SN Power has followed the Vietnamese power market for several years. We believe we can strengthen Vietnam’s long-term renewable generating capacity through our power market experience and technology transfer,” said Erik Knive, Executive Vice President SN Power Southeast Asia.
SN Power and IFC have collaborated previously on several of SN Power’s global investments in wind and hydro power plants in Chile, India, and the Philippines. SN Power uses IFC’s social and environmental performance standards for conducting due diligence of acquisition and greenfield power projects.
The companies hope that the new agreement will pave the way for a strong portfolio of renewable energy projects and help meet Vietnam’s growing demand for power.
The agreement will enable IFC and SN Power to develop an investment strategy, policy, and guidelines to address Vietnam’s growing demand for power. The partners will acquire operating assets and invest in greenfield projects to build up a portfolio of renewable energy investments in the country. The project will be IFC’s first investment in Vietnam through IFC InfraVentures, and SN Power’s first partnership in Vietnam.
