PetroVietnam Power Corporation (PV Power), IB Global, and IDG Capital Vietnam signed an MoU on January 28 to boost clean energy development amid an ever-increasing demand.
The three parties wish to form a strategic partnership between PV Power and IDG’s Vietnam Clean Energy Fund, with IB Global acting as a strategic advisor to the fund. IDG will close the fundraising by the end of 2022. The IDG Vietnam Clean Energy Fund is scheduled to raise $300 million equity capital and $1 billion total capital for Vietnam’s clean and green energy sector in the next three years.
Vietnam has seen a fast GDP growth rate, from 6.5-7 per cent per year, with the exception of 2021, leading to an average increase in energy demand of 11 per cent per year. According to the current draft of the Power Development Plan VIII, Vietnam needs to achieve a 15-20 per cent renewable energy ratio by 2030 and 20-30 per cent by 2045. The biggest challenge for renewable energy development lies in the availability of investment capital.
Prior to signing the MoU, the three representatives exchanged views on the development priorities in clean energy development in Vietnam. Hughes said, “IDG is excited to enter into this cooperation with PV Power and strongly believes in the significant investment opportunities that will arise from this cooperation.
With the market potential and the parties’ inherent capabilities, the MoU is expected to be a massive boost for the energy industry in Vietnam.
PV Power is a member of the Vietnam Oil and Gas Group, established in 2007.
IDG began its journey in Vietnam in 2004 as IDG Ventures Vietnam and, following a rebranding in 2017, is continuing to invest in extraordinary companies as IDG Capital Vietnam. As a global private equity fund specializing in global energy assets investment and management, IDG wishes to make an investment in the clean energy sector with or via its financial partners to capitalize on the post-pandemic rebound in demand for power consumption in Vietnam.
IB Global is a boutique investment bank and advisory house located in Singapore. They are a trusted partner for foreign investors, seeking opportunities in Vietnam.