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					</table>Vietnam is leading its Southeast Asian peers in transitioning its grid to renewable energy, with the country&#8217;s utility-scale solar and wind power capacity accounting for nearly 70% of the region&#8217;s total.
According to a new report from <a href="https://globalenergymonitor.org/" target="_blank" rel="noopener">Global Energy Monitor</a>, Vietnam has about 19.5 GW of operating utility-scale solar and wind capacity, more than double the combined capacity of all other ASEAN member countries. It accounts for 25% of Vietnam&#8217;s total energy mix, surpassing the ASEAN average of 9%.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/SEA-solar-and-wind-capacity.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-67489 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/SEA-solar-and-wind-capacity.png" alt="SEA solar and wind capacity" width="522" height="467" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/SEA-solar-and-wind-capacity.png 522w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/SEA-solar-and-wind-capacity-300x268.png 300w" sizes="(max-width: 522px) 100vw, 522px" /></a>
But, the report warns that Vietnam faces significant hurdles in integrating this renewable energy into its grid and maintaining momentum in the sector.
Vietnam&#8217;s renewable energy boom was largely driven by competitive feed-in-tariff (FIT) programs implemented between 2017 and 2020. These initiatives propelled solar development, with the country adding over 12 GW of utility-scale solar capacity from 2019 to 2021 alone.
However, the report said that the expiration of these FIT programs, the lack of a replacement pricing policy, and COVID-19 pandemic-related supply chain disruptions have slowed the pace of renewable energy growth in Vietnam. In 2022, the country commissioned only 1 GW of new capacity, against nearly 4 GW in 2021.
The report also notes that some renewable energy projects have been curtailed to as low as 13% of their production capacity due to insufficient grid infrastructure.
Global Energy Monitor has identified over 86 GW of prospective utility-scale solar and wind capacity in Vietnam, including a staggering 72 GW of potential offshore wind projects along the country&#8217;s 3,260 km coastline.
Yet only 2% of this prospective capacity is currently under construction. The report cites a lack of clear and reliable renewable energy policies deterring investors from progressing with project development.
Vietnam has also been successful in <a href="https://www.mercomindia.com/polysilicon-imports-into-china-drop-vietnam" target="_blank" rel="noopener">attracting</a> China-based manufacturers of polysilicon – a key component of solar panels, as they tried to skirt U.S. regulations.
Upcoming projects
Most of the upcoming utility-scale solar and wind projects among ASEAN countries (over 80%) are in the Philippines and Vietnam. Over 185 GW of the projects announced are in the pre-construction and under-development stages. However, only 6.3 GW (3%) of all the new capacity announced in ASEAN is currently under construction.
With 99 GW and 86 GW of upcoming utility-scale solar and wind projects, the Philippines and Vietnam are the 8th and 9th largest markets worldwide for new capacity in the pipeline.
Indonesia has 16.5 GW of utility-scale solar and 2.5 GW of wind projects in the pipeline. However, no projects are currently under construction.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/SEA-potential-solar-and-wind-capacity.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-67488 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/SEA-potential-solar-and-wind-capacity.png" alt="SEA potential solar and wind capacity" width="778" height="621" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/SEA-potential-solar-and-wind-capacity.png 778w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/SEA-potential-solar-and-wind-capacity-300x239.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/SEA-potential-solar-and-wind-capacity-768x613.png 768w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/SEA-potential-solar-and-wind-capacity-650x519.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/SEA-potential-solar-and-wind-capacity-624x498.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2024/06/SEA-potential-solar-and-wind-capacity-600x479.png 600w" sizes="(max-width: 778px) 100vw, 778px" /></a>ASEAN Offshore Wind Potential 
Collectively, ASEAN nations boast over 28 GW of operating utility-scale solar and wind capacity, marking a 20% jump since January 2023. Although far behind Vietnam, Thailand and the Philippines account for 6.1 GW, nearly 21% of the total installed capacity.
Notably, the report highlights that ASEAN countries, thanks to their extensive shorelines, have almost five times more prospective offshore wind power than onshore wind, with offshore projects totaling 124 GW – nearly double the current global offshore operating capacity.
However, despite the prospective utility-scale wind and solar capacity of 220 GW across the region, only 3%, 6 GW, is currently under construction. This figure falls well below the global average of 7% (excluding China), indicating slower progress in bringing projects online.
The ASEAN bloc has set a collective target of sourcing 35% of its total installed capacity from renewable energy by 2025. While this goal appears within reach – the region currently stands at 32% renewable capacity – the report suggests that this target may be unambitious given the vast growth potential.
Earlier this month, the United States International Trade Commission decided to <a href="https://www.mercomindia.com/usitc-investigation-solar-imports-southeast-asia" target="_blank" rel="noopener">proceed</a> with investigations into crystalline silicon photovoltaic cells, whether or not assembled into modules originating from the southeast Asian nations of Cambodia, Malaysia, Thailand, and Vietnam.

Vietnam Leads Southeast Asia in Solar and Wind Power with 19.5 GW

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					</table>Floating solar could play a crucial role in the Association of Southeast Asian Nations&#8217; (<a href="https://asean.org/" target="_blank" rel="noopener">ASEAN</a>) regional target of 35% renewable energy in the installed power capacity by 2025, according to a report published by National Renewable Energy Laboratory (<a href="https://www.nrel.gov/" target="_blank" rel="noopener">NREL</a>).
The report identified 7,301 water bodies —88 reservoirs and 7,213 natural water bodies — as potentially suitable for floating solar deployment in Southeast Asia.
Overall, the floating solar potential ranges from 134–278 GW on reservoirs and 343–768 GW on natural water bodies.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/FS1.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-56092 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/FS1.png" alt="FS1" width="602" height="378" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/FS1.png 602w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/FS1-300x188.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/FS1-600x377.png 600w" sizes="(max-width: 602px) 100vw, 602px" /></a>
The report states that the potential for floating solar installations is more significant on reservoirs in Laos and Malaysia.
At the same time, it is higher on natural water bodies in Brunei, Cambodia, Indonesia, Myanmar, the Philippines, Singapore, and Thailand.
In Vietnam, the potential remains relatively consistent regardless of the type of water body.
<a href="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/FS2.png"><img loading="lazy" decoding="async" class="aligncenter wp-image-56094 size-full" src="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/FS2.png" alt="FS2" width="602" height="378" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/FS2.png 602w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/FS2-300x188.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2023/07/FS2-600x377.png 600w" sizes="(max-width: 602px) 100vw, 602px" /></a>
Brunei
Brunei, which relies heavily on natural gas (78%) and coal (21%) for its electricity generation,  aims to generate 30% of its electricity from renewable sources by 2035. Unlike its neighboring Southeast Asian countries, Brunei lacks the installed capacity and significant potential for hydropower, which limits its ability to integrate floating solar with existing hydropower infrastructure.
According to the report, Brunei has no technical potential for floating solar on artificial reservoirs. However, the assessment identified 18 natural water bodies that show promise for future floating solar projects.
The potential capacity for floating solar on these water bodies ranges from 137 to 669 MW, depending on the assumptions made about the distance from the shore.
Cambodia 
Cambodia has set a target for its installed capacity mix by 2030, aiming for 55% hydropower, 6.5% biomass, and 3.5% solar, while fossil fuels are expected to make up for the remaining 35%.
Currently, hydropower is the primary source of electricity, accounting for approximately 45% of the total generation as of 2020.
Estimates suggest Cambodia has a floating solar potential of 15-29 GW on reservoirs and 22-46 GW on natural water bodies.
Indonesia
With an abundance of renewable resources and an ambitious goal of achieving net-zero emissions by 2060, Indonesia&#8217;s power generation mix currently relies heavily on coal (60%), followed by natural gas (18%), renewables such as hydropower, geothermal, and biofuels (17%), and oil (3%).
Although Indonesia possesses substantial wind and solar resources, these technologies have not yet been widely deployed.
PT Perusahaan Listrik Negara, the state-owned utility in Indonesia, plans to add approximately 21 GW of renewable energy capacity between 2021 and 2030, accounting for slightly over half of the new capacity additions. Hydropower is expected to contribute 4.9 GW within this planned capacity, while solar power is projected to contribute 2.5 GW.
According to the report, a total of 1,858 water bodies (including 19 reservoirs and 1,839 natural water bodies) were identified as potentially suitable for floating solar projects. The technical potential estimates indicate a broad range of floating solar capacity, spanning from 170 to 364 GW.
Laos
By 2025, Laos aims to achieve 30% of its total energy consumption from renewable sources.
According to the report, unlike most other ASEAN countries, Laos exhibits a higher potential for floating solar installations on reservoirs than natural water bodies. This is likely due to the country&#8217;s significant domestic hydropower resources.
Considering the three reservoirs assessed in the report, Laos has an estimated floating solar potential of 5-10 GW. For natural water bodies, Laos possesses an estimated floating solar potential of around 2-5 GW.
Combined with the potential on reservoirs, this amounts to a substantial range of 9-15 GW. However, after applying a transmission filter that excludes water bodies more than 25 km away from the nearest transmission line, the potential remains the same for reservoirs while decreasing by approximately 8.4-10.1% for natural water bodies, depending on the assumptions made about the distance from the shore.
Malaysia
By 2030, Malaysia has plans to increase its renewable energy capacity to 4 GW. Additionally, the country has set a target of achieving 31% of its installed electricity generation capacity from renewable sources by 2025.
Like Laos, Malaysia demonstrates a higher potential for floating solar installations on reservoirs, estimated to be within the range of 23-54 GW, compared to natural water bodies, which have a potential of 13-30 GW. As of 2021, Malaysia&#8217;s total installed electricity generation capacity was 39 GW.
A separate study conducted on six specific locations in Malaysia indicated that floating solar projects could generate approximately 14.5 GWh/year.
The report expands on that finding by considering all feasible water bodies in the country, suggesting that floating solar projects have the potential to generate an estimate of 47-109 GWh/year.
Myanmar
By 2025, Myanmar aims to achieve a target of 20% of installed electricity generation capacity from renewable sources. According to Myanmar&#8217;s 2015 Energy Master Plan, the goal is to increase the contribution of hydropower from 50% of electricity generation in 2021 to 57% by 2030.
The report indicates that Myanmar&#8217;s floating solar potential on reservoirs is comparatively lower, ranging from 18 to 35 GW. In comparison, the potential on natural water bodies is estimated to be within the range of 21 to 47 GW. When combined, this potential capacity exceeds Myanmar&#8217;s total electricity generation capacity, which stood at approximately 7.6 GW as of 2021.
After applying a transmission filter that excludes water bodies located further than 25 km from the nearest transmission line, the potential capacity experiences a decrease of 1.7-2.1% for reservoirs and a decrease of 9.7-16.2% for natural water bodies, depending on the distance assumptions made from the shore.
Philippines
The Philippines has set several priorities in the electricity sector, including meeting the growing electricity demand, achieving universal electricity access by 2022, and installing 15 GW of renewable energy capacity by 2030.
In 2019, the Philippines successfully launched its first floating solar project, and subsequent construction on other projects commenced in the following years. The potential assessment reveals a significantly higher capacity range for floating solar installations on natural water bodies, estimated to be within the range of 42-103 GW, compared to reservoirs, which have a potential capacity of 2-5 GW.
When applying a transmission filter that excludes water bodies located further than 25 km from the nearest transmission line, the technical potential capacity remains unchanged for reservoirs. At the same time, it decreases by approximately 1.7 to 5.2% for natural water bodies.
Singapore
Singapore has outlined renewable energy goals that involve installing 2 GW of solar capacity by 2030 and meeting 30% of its energy needs through low-carbon electricity imports by 2035.
The report identifies one reservoir and six natural water bodies in Singapore, with the technical potential ranging from 67-153 MW on the reservoir and 206-381 MW on the natural water bodies. These figures are in comparison to the country&#8217;s total installed electricity generation capacity of 12 GW as of 2021.
Singapore shows significant interest in offshore and nearshore floating solar projects, and in that regard, the nation has constructed a 5-MW floating solar project off its coast.
Thailand
Thailand is planning to build over 2.7 GW of floating solar projects on nine different reservoirs by 2037. The report suggests a significant floating solar potential of 33–65 GW on reservoirs and 68–152 GW on natural waterbodies, compared to a total installed electricity generation capacity of 55 GW in 2021.
When the transmission filter is applied (excluding water bodies further than 25 km from the nearest transmission line), the potential capacity decreases by 1.8–2.5% for reservoirs and decreases by 3.9-5.9% for natural water bodies.
Vietnam
Vietnam has set an ambitious goal to deploy 31-38 GW of solar and wind capacity by 2030, aligning with its broader objective of achieving carbon neutrality by 2050.
Given Vietnam&#8217;s substantial reliance on hydropower, the country presents a favorable environment for both standalone and hybrid floating solar projects. Among the Southeast Asian nations, Vietnam boasts the highest number of reservoirs suitable for floating solar installations, totaling 22. These reservoirs hold an estimated floating solar potential of approximately 21-46 GW.
Similarly, the technical potential for floating solar on natural water bodies in Vietnam falls within the range of 21-54 GW.
Upon applying a transmission filter that excludes water bodies situated further than 25 km from the nearest transmission line, the technical potential capacity remains unchanged for reservoirs while experiencing a decrease of less than 0.5% for natural water bodies.
In May this year, Blueleaf Energy and SunAsia Energy were <a href="https://www.mercomindia.com/philippines-610-mw-floating-solar-project" target="_blank" rel="noopener">awarded</a> contracts by the Philippine government to construct and manage what is claimed to be the world&#8217;s largest floating solar project with a combined capacity of 610.5 MW.
According to an earlier report by NREL, the addition of floating solar projects on the top of water bodies, which already have hydropower stations, can annually <a href="https://www.mercomindia.com/floating-solar-hydropower-projects" target="_blank" rel="noopener">generate</a> around 7.6 TW of clean energy from the solar photovoltaic systems alone.

Floating Solar a Viable Option for Southeast Asia to Meet Energy Transition Targets

Singapore-based <a href="https://www.spgroup.com.sg/home" target="_blank" rel="noopener noreferrer">SP Group</a>, one of the leading names in the energy utility business, has now become the first authorized local issuer of International Renewable Energy Certificates (I-RECs) in the Asia Pacific region.
Companies can now buy or sell green I-RECs on SP Group’s digital REC trading platform. This independent accreditation by the <a href="http://www.irecstandard.org/" target="_blank" rel="noopener noreferrer">International REC Standard Foundation</a> will authenticate the transactions and assure the consumer of the credibility of each Renewable Energy Certificate (REC) transaction.
RECs are tradable renewable assets that can be sold or traded, and the owner of the REC can claim to have purchased renewable energy. RECs are an excellent way to meet renewable energy targets, and it offers an authentic and credible way to make sure that the power comes from renewable sources. With each MW of green energy, one REC is produced, and it is uniquely numbered and tracked. Last year, nearly 1,000,000 GWh worth of RECs were issued globally.
SP Group has also enhanced its REC trading platform, which provides a one-stop solution for buyers and sellers from across the globe.
Speaking about the enhanced digital REC trading platform, May Liew, head of sustainability and open innovation at SP Group, said, “SP is removing barriers so that small and big companies can achieve their green targets seamlessly. With our one-stop digital trading platform, they not only have the assurance that the electricity they consume comes from renewable sources, but they can also buy and sell RECs without the hassle of dealing with multiple manual processes to issue and verify the RECs.”
Notably, companies that can’t invest in renewable sources on their own can buy RECs in an attempt to offset their carbon emissions, and SP Group’s platform provides them the perfect platform to do so.
Highlighting the benefits of I-REC accreditation, Jared Braslawsky, secretary-general of I-REC, said: “The I-REC Standard empowers consumers to take responsibility not just for the energy they consumed but also for the origin of the energy consumed. With the support of SP Group, there is a neutral and unprejudiced market facilitator who can play a crucial role in strengthening consumers’ sustainability efforts.”
Last year, SP Group <a href="https://mercomindia.com/blockchain-renewable-energy-singapore/" target="_blank" rel="noopener noreferrer">launched</a> the world’s first blockchain-based renewable energy certificate marketplaces at the <a href="https://asean.org/" target="_blank" rel="noopener noreferrer">ASEAN</a> Energy Business Forum (AEBF). Blockchain technology helps to enhance the security, integrity, and traceability of each REC transaction.  City Developments Limited (CDL) and DBS Bank (DBS) were the first purchasers of RECs through the platform.
In India, RECs are currently traded on two power exchanges, Indian Energy Exchange (IEX) and Power Exchange India Ltd. (PXIL). Currently, RECs are traded once in a month.
<a href="https://mercomindia.com/cerc-extends-validity-of-recs-april-october-2019/" target="_blank" rel="noopener noreferrer">Recently</a>, providing relief to renewable energy generators of both solar and non-solar projects, which are a part of the renewable energy certificate mechanism, the CERC issued an order extending the validity of RECs, which were due to expire between April 1, 2019, and October 31, 2019.
A few months ago, the Central Electricity Regulatory Commission (<a href="http://www.cercind.gov.in/" target="_blank" rel="noopener noreferrer">CERC</a>) <a href="https://mercomindia.com/iex-introduces-green-term-ahead-market/" target="_blank" rel="noopener noreferrer">ordered</a> the IEX to give wide publicity to Green Term Ahead Market (GTAM) contracts by uploading it on its website and invite comments from all stakeholders and public. The IEX had sought its approval for the introduction of the GTAM (Renewable Energy) contract at the power exchange under the CERC (Power Market) Regulations, 2010.
Meanwhile, in <a href="https://mercomindia.com/october-solar-rec-trading-sees-record-high-price/" target="_blank" rel="noopener noreferrer">October’s</a> REC trading session, there was an increase in the number of solar and non-solar RECs that were traded compared with the trading activity recorded in September. A total of 99,580 solar RECs were traded cumulatively on the IEX and PXIL.

Trading Platform for International Renewable Energy Certificates Started in Singapore

The Indian Railway Finance Corporation (IRFC) has signed an agreement with the Asian Development Bank (ADB) for the electrification of railway tracks.
This initiative is part of a broad modernization program that will help India’s railway sector transition to electric power and away from dependence on fossil fuels, <a href="https://www.adb.org/" target="_blank" rel="noopener noreferrer">ADB</a> said in a media statement.
ADB has said it will provide $750 million (₹52.20 billion) in long-term financing, the largest single non-sovereign loan ever committed by the ADB.
Concurrently with the loan agreement signing, risk participation agreements have also been signed with private risk participants for the project. <a href="http://irfc.nic.in/" target="_blank" rel="noopener noreferrer">IRFC</a>, an entity owned by the government of India, will use the proceeds from the loan to install electric traction equipment along approximately 3,378 kilometers of existing railway lines, which will enable the migration of passenger and freight traffic from diesel to electric traction. The electrification assets will be leased to Indian Railways under a long-term lease agreement.
“This is a flagship project demonstrating ADB’s strategy of supporting key state-owned enterprises in strategic sectors. It also reflects a major push by the private sector operations of the ADB into transport infrastructure, and particularly railways, a sub-sector in which traditionally such operations have not contributed a great deal,” said Diwakar Gupta, ADB’s vice-president for private sector operations and public-private partnerships.
The government of India has placed significant emphasis on investing in infrastructure and has developed a 5-year program with $132 billion capital expenditure for the modernization of Indian Railways. The program comprises network expansion and decongestion; enhancement of safety and passenger amenities; development of dedicated freight corridors; station redevelopment; and procurement of rolling stock and other related assets. The electrification of railway tracks is part of this master plan, which is critical for the movement of goods and people within the country, the release informed.
IRFC was set up in 1986 as the financing arm of Indian Railways for mobilizing funds from domestic and international capital markets. It is fully owned by the government and is registered as a non-banking finance company.
Indian Railways is going green in a big way and plans to become a net-zero carbon emitter by 2030, Union Railways Minister Piyush Goyal had <a href="https://mercomindia.com/indian-railways-net-zero-carbon-emitter-2030/" target="_blank" rel="noopener noreferrer">announced</a> last year. Indian Railways is the single largest consumer of electricity in the country, with an approximate 2% share of national energy consumption.
Previously, <a href="https://mercomindia.com/indian-railways-bids-solar-projects/" target="_blank" rel="noopener noreferrer">Mercom also reported that </a>Indian Railways plans to float tenders for the development of solar projects that will expand the company’s footprint in the Indian solar sector.

ADB Provides $750 Million Loan to Indian Railways for Transitioning to Electric Power

The Asian Development Bank (<a href="https://www.adb.org/" target="_blank" rel="noopener noreferrer">ADB</a>) along with Southeast Asian governments and major development financiers has launched the “ASEAN (<a href="https://asean.org/" target="_blank" rel="noopener noreferrer">Association of Southeast Asian Nations</a>) Catalytic Green Finance Facility,” a new initiative that aims to mobilize more than $1 billion in green infrastructure investments across Southeast Asia.
The initiative is expected to provide loans and technical assistance for sovereign green infrastructure projects such as sustainable transport, clean energy, and resilient water systems. It also aims to accelerate private capital by mitigating risks through innovative finance structures.
The facility includes $75 million from the ASEAN Infrastructure Fund (AIF), $300 million from ADB, €300 million ($336 million) from <a href="https://www.kfw.de/KfW-Group/" target="_blank" rel="noopener noreferrer">KfW</a>, €150 million ($168 million) from the <a href="https://www.eib.org/en/index.htm" target="_blank" rel="noopener noreferrer">European Investment Bank</a>, and €150 million ($168 million) from <a href="https://www.afd.fr/en" target="_blank" rel="noopener noreferrer">Agence Française de Développement</a>. The Organisation for Economic Co-operation and Development and the Global Green Growth Institute will support knowledge sharing and capacity building on green finance. The Overseas Private Investment Corporation has expressed interest in potential financing for emerging projects.
The facility is part of a new “Green and Inclusive Infrastructure Window” under the AIF, a regional financing initiative established by ASEAN governments and ADB in 2011 and administered by ADB. The fund has committed $520 million for energy, transport, water, and urban infrastructure projects across the region.
<a href="https://mercomindia.com/adb-loan-15-mw-solar-projects-mongolia/" target="_blank" rel="noopener noreferrer">Last month</a>, the ADB and Asia’s Private Infrastructure Fund (LEAP) signed an agreement to provide an $18.7 million loan to develop 15 MW of solar power project in Mongolia.
In <a href="https://mercomindia.com/adb-invests-20-million-ac-energys-first-climate-bond/" target="_blank" rel="noopener noreferrer">February</a> 2019, ADB invested $20 million in the first climate bond issuance of <a href="https://www.acenergy.com.ph/" target="_blank" rel="noopener noreferrer">AC Energy</a>, a wholly-owned subsidiary of Ayala Corporation in the Philippines. This was the first Climate Bond Initiative (CBI) certified US dollar climate bond in Southeast Asia listed on the Singapore Stock Exchange.
&nbsp;

ADB and ASEAN Announce $1 Billion Green Finance Facility

JA Solar Vietnam, a wholly-owned subsidiary of Chinese solar manufacturer JA Solar, has completed a long-term buyer credit loan agreement of $68.4 million from China Minsheng Bank Corporation Limited.
The long-term credit agreement will be used to finance the procurement of equipment for JA Solar Vietnam’s 1.5 GW solar wafer manufacturing facility. According to the loan agreement terms, China Mingsheng Bank has agreed to provide the loan with a 7-year term following a signed corporate guarantee against the loan facility.
According to the loan agreement, the lender will provide the subsidiary with a loan facility for a seven-year term. JA Solar has also signed a corporate guarantee against the loan with China Minsheng Bank Corporation Limited.
<a href="http://www.jasolar.com/" target="_blank" rel="noopener">JA Solar Holdings Company Ltd</a>., a leading vertically-integrated module manufacturer, is one of the top module suppliers to India. In <a href="https://mercomindia.com/ja-solars-solar-module-export-india-reaches-1-gw-2017/" target="_blank" rel="noopener">December 2017</a>, it announced that its module shipments to India reached a capacity of 1 GW in 2017.
<a href="https://mercomindia.com/major-policy-change-china-affect-global-solar/" target="_blank" rel="noopener">Mercom recently reported that major</a> policy changes like imposing installation caps and reduction in the feed-in tariff (FiT) for solar projects in China could rock the solar industry globally and reduce module prices. As a consequence of these policy changes, the Asia Europe Clean Energy (Solar) Advisory (<a href="http://www.aecea.com.de/index.html" target="_blank" rel="noopener">AECEA</a>) has lowered its forecast for China’s solar capacity addition for 2018 from 40-45 GW to 30-35 GW. Chinese banks like China Minsheng Bank may support projects outside of China to compensate for the possible slowdown in demand.
According to a report by Mercom India Research&#8217;s <a href="https://mercomindia.com/product/mercoms-india-solar-market-share-report/" target="_blank" rel="noopener">India Solar Market Leaderboard 2018</a> that covers market share and shipment rankings across the Indian solar supply chain in 2017, JA Solar was the third largest solar module supplier to India.
Image credit: By Oregon Department of Transportation (Solar World wafer Uploaded by Smallman12q) [<a href="https://creativecommons.org/licenses/by/2.0" target="_blank" rel="noopener">CC BY 2.0</a>], via Wikimedia Commons

JA Solar Receives $68.4 Million Loan for a 1.5 GW Solar Wafer Factory in Vietnam

The Asian Development Bank (<a href="https://www.adb.org">ADB</a>) has agreed to provide a $235 million loan to B. Grimm Power Public Company Limited for the expansion of renewable energy projects in the member countries of the Association of Southeast Asian Nations (ASEAN).
According to a press release issued by the ADB, the bank had a $57.7 million equity stake in <a href="http://www.bgrimmpower.com/en">B. Grimm Power</a> as part of the company’s Initial Public Offering (IPO) in July 2017. Previously, the bank also administered a $20 million loan provided by the Canadian Climate Fund for the private sector in Asia under the Clean Energy Financing Partnership Facility.
This investment by the ADB will help B. Grimm Power’s implementation of the ASEAN Distributed Power Project, which is aimed at expanding renewable and distributed power generation into new markets in ASEAN.  These new countries include: Cambodia, Indonesia, Lao People’s Democratic Republic, Myanmar, the Philippines, and Vietnam.
The project will involve the development of distributed and utility-scale solar, wind, biomass, waste-to-energy, gas-fired power, energy storage, as well as other required infrastructure in these countries.
With this financing, B. Grimm Power’s total distributed power generation capacity is expected to increase by over 50 percent to 2.5 GW by the year 2022. The company’s renewable energy share will also rise from the present 10 percent to 30 percent.
Grimm Power is one of the largest power producers in Thailand and a subsidiary of B. Grimm Group, which has been operating in the country’s energy industry since the year 1993. B. Grimm Power currently has a total capacity of 1.78 GW. Of late, B. Grimm has diversified into the renewable energy market as well and currently operates 15 solar power plants and two hydro power plants.
In November 2017, Mercom also <a href="https://mercomindia.com/adb-grant-develop-grid-connected-solar-afghanistan/">reported</a> that ADB agreed to provide a $44.76 million (~₹2.88 billion) grant to help develop 20 MW of grid-connected solar projects in Afghanistan.
ADB is focused on Asia’s renewable energy market. It recently approved a spate of grants and loans for renewable energy projects, specifically solar, in <a href="https://mercomindia.com/adb-provide-50-million-loan-develop-50-mw-rooftop-solar-sri-lanka/">Bangladesh</a>, <a href="https://mercomindia.com/adb-loan-wind-project-sri-lanka/">Sri Lanka</a>, and <a href="https://mercomindia.com/punjab-national-bank-receives-100-million-loan-adb-finance-solar-rooftop-projects-india/">India</a>.

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