Norway’s Scatec Solar signs US$500 million deal to develop solar power in Vietnam

Norway’s Scatec Solar ASA on May 24 signed a deal worth US$500 million to develop several solar power projects as the Vietnamese government has encouraged renewable energy. 

Scatec Solar signed a strategic collaboration agreement with Vietnamese partner MT Energy (MTE) for 485 MW of three solar PV projects in the southern province of Binh Phuoc, and the central provinces of Quang Tri and Nghe An. 



The projects which will be developed, financed, and executed by the joint venture would work under a new feed-in tariff regime that is expected to be launched later this year, the company said on its website.



The agreement has been presented to the Vietnamese prime minister, Norwegian minister of Trade and Industry, and other high-level officials during a Vietnam – Norway business forum. Vietnamese Prime Minister Nguyen Xuan Phuc was on a visit to Norway on May 24-26



“With this partnership we take the first step in positioning Scatec Solar for the growing solar market in Vietnam. As an affordable, fast and reliable source of energy, we believe solar energy has tremendous potential in Vietnam”, says Raymond Carlsen, CEO of Scatec Solar.



Scatec Solar is envisioned to provide the project’s equity funding and works as the turn-key EPC provider. In addition, the Norwegian company will provide operation and maintenance as well as asset management services to the projects.



CEO of Scatec Solar Raymond Karlsen said at the Vietnam – Norway Business Forum that the investment in Vietnam is promising as the country is one of few countries switching to boost renewable energy.



He emphasized that Vietnam can benefit the results of Scatec Solar’s investment next year but not five years as the majority of the projects. 



He expected to set up a laboratory for Vietnam to research, transfer, and then export renewable energy to regional countries. 



He hopes that Vietnam would have policies on preferential tax for companies investing in renewables. 



Scatec Solar develops, builds, owns, and operates solar power plants across emerging markets with a combined capacity of 1GW. The firm expects to raise its installed capacity worldwide to 3.5GW by 2021.