en.Wedoany.com Reported - The Asian Development Bank (ADB) has signed a $37 million loan agreement to support Vietnam's first large-scale floating solar photovoltaic project, with funds provided to Da Nang-Ham Thuan-Da Mi Hydropower Joint Stock Company (DHD). The project plans to construct a 47.5 MW floating solar photovoltaic (PV) plant on the reservoir of DHD's existing 175 MW Da Mi hydropower station. Once operational, it is expected to become the largest floating solar installation in Southeast Asia.
The project integrates floating solar technology with existing hydropower facilities, enabling the same reservoir to generate both hydropower and solar electricity simultaneously. By combining solar and hydropower generation, this approach aims to enhance the overall efficiency of renewable energy generation and make fuller use of existing infrastructure. The ADB believes this project will help increase the share of renewable energy in Vietnam's power mix and reduce reliance on imported fossil fuels, particularly coal.
The ADB also noted that this project could serve as a model for developing similar projects in Vietnam and other countries in the Asia-Pacific region. Building floating solar projects on reservoirs can effectively expand renewable energy capacity without requiring significant additional land, which is attractive to countries seeking clean energy solutions.
DHD, a subsidiary of Vietnam Electricity Generation Corporation 1, currently owns and operates four hydropower plants with a total installed capacity of 642.5 MW, accounting for approximately 1.7% of Vietnam's total power generation capacity. Company management stated they are proud to lead the implementation of Vietnam's first floating solar project on a hydropower reservoir, calling it a key step in the company's long-term renewable energy strategy. They added that reservoirs in southern Vietnam have great potential for developing floating solar, helping to ensure energy security, address climate change, and promote sustainable economic growth.
The financing package includes a $17.6 million loan from ADB's ordinary capital resources. Additionally, the Canadian Climate Fund for the Private Sector in Asia, established by the Government of Canada, and its successor fund provided $15 million in concessional co-financing, designed to encourage private sector investment in climate-related projects. A further $4.4 million in parallel financing comes from a leading private infrastructure fund in Asia, supported by the Japan International Cooperation Agency (JICA), which is committed to promoting sustainable private infrastructure investments with a focus on reducing carbon emissions and improving energy efficiency.
This project reflects ADB's ongoing commitment to supporting sustainable infrastructure and clean energy development in the Asia-Pacific region. By introducing floating solar technology on an operational hydropower reservoir, Vietnam has taken a key step toward diversifying its renewable energy mix, while strengthening long-term energy security and supporting the achievement of its climate goals.
