Vietnam is striving to achieve sustainable growth, with a focus on renewable energy development amid severe climate change.
Developing renewable energy: Making a dream come true
To catch up with the global trend, Sao Mai has worked out a detailed plan with a long-term vision for renewable energy development from now until 2050, promising to make a significant contribution to the country’s green growth.
Featuring 16 affiliates with total assets exceeding VND19,000 billion, Sao Mai Group asserts its position in different business sectors, ranging from real estate development, design and construction, renewable energy, tourism, labor export, and financial investment to aqua-product exports, production of aquaculture feed, fish powder and quality oil extracted from fish. The successful operation of many projects in the past and the ongoing ones has shown the group’s capability in overcoming hardships to move toward comprehensive and sustainable development.
Ground mounted solar electricity
As Vietnam’s total technical potential is estimated at up to 837,400MW of ground mounted solar electricity, Sao Mai Group has mapped out a two-phase plan to tap this source renewable energy. Under this plan, solar farms with 1,043MW in total capacity would be developed from 2023 to 2030. However, due to policy uncertainties over the utilization of solar power, the group now shifts its focus to rooftop solar power, prioritizing the development of self-sufficient renewable energy sources between 2030 and 2050. This business orientation is in line with the national power plan, which aims to have total installed capacity of between 168,594 and 189,294 MW.
Rooftop solar electricity – the direct power purchase agreement (DPPA) mechanism
Sao Mai Group recognizes business opportunities offered by an energy service company (ESCO) as this business model could generate up to 48,200MW of rooftop power in Vietnam. The installation of a system of 5 to 10 Kwp in size is appropriate for households while systems with larger capacity could be installed at office buildings, schools and factories. These calculations are based on the results of monthly energy savings, ability of capital recovery for different business areas and households.
For the DPPA mechanism, the separation of the National Load Dispatch Center (A0) from Vietnam Electricity Group (EVN) to become an independent unit under the management of the Ministry of Industry and Trade has offered opportunities for renewable energy development. Sao Mai Group also studies the demand for solar power of potential business partners including industrial clusters, office buildings, state agencies, thereby planning to acquire projects included in the National Power Development Plan VIII that are encouraged to develop this mechanism.
Wind power and other power sources (green Ammonia, hydrogen, Pumped hydropower storage – PHS): A firm foundation for future strong growth
Sao Mai Group aims to develop offshore wind power or new energy sources after 2030 when it expects more favorable policies introduced by Vietnam.
In the 2023-2030 period, with 14GW approved for this type of wind power, the group will strive to build at least one plant, paving the way for developing a comprehensive ecosystem by 2050. During this period, the group will acquire wind farm projects that are subject to tariffs for transitional renewable power projects for further development.
A foothold based on current operation
With an aim to have an installed generation capacity of 6,080.4MW by 2050, the group has worked out a detailed plan for phased development. Between 2023 and 2025, the group will focus on improving further existing energy projects and preparing preliminary steps for development of wind farm projects, expected to achieve a total capacity of 110.4MW. From 2025 to 2030, development of onshore and near-shore wind power projects along with pumped hydropower storage will be prioritized by the group to look to a capacity of 1,700MW.
Based on the National Power Development Plan VIII, the group plans to develop its projects at localities which could offer the group with most favorable conditions including Gia Lai and Dak Lak provinces in the Central Highlands, and Soc Trang and Tra Vinh provinces in the Mekong Delta.
In the 2030-2050 period, the group aims to achieve a capacity of 4,000MW thanks to its strong development of rooftop solar, offshore power projects and other power supply sources. The increase in power capacity along with power supplied by existing projects including An Hao 210MWp and Europlast Long An 50MWp are expected to help the group realize its target.
Through its renewable energy projects, Sao Mai Group aspires to contribute to the country in its endeavors to protect the environment and achieve sustainable growth. The group is committed to a promising green future with its successful operation of ground mounted solar power plants and in pursuit of new energy sources.
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