Nordic Impact Cooperation is a unique financing platform for impact investing in developing countries established earlier this year between Finnfund, the Finnish Fund for Sustainable Development, and Norway’s Norsk Solar. On 20 August the group made its first investment decision into a Norsk Solar-developed solar PV-project in Vietnam, according to this announcement from Finnfund.
In March this year, Norsk Solar signed an 11 MW long-term electricity purchase agreement valued at around NOK 100 million with Central Retail in Vietnam, one of southeast Asia’s largest retail conglomerates, to supply solar energy to several shopping centers in Vietnam over the next 20 years. The project is one of the largest single-client rooftop solar PV systems in Vietnam and under the agreement, Norsk Solar will build larger solar systems on companies’ roof surfaces from Hanoi in the north to Ho Chi Minh City in the south so that renewable energy is produced and consumed locally.
Nordic Impact Cooperation has now made a positive investment decision for the project and will invest about USD 1.4 million, which in return gives ownership of 55 percent of the project. The remaining ownership is held by Norsk Solar to include another Nordic state-owned DFI as a shareholder. The project is already under construction with all supply and EPC contracts signed and initiated, and is expected to reach commercial operations in Q4, 2021.
The project will generate over 300,000 MWh of clean electricity over the lifetime of the project; equivalent to offsetting more than 120,000 tonnes of CO2 emissions over the system lifetime.
Read more about the project here