ADB, GreenYellow sign deal for commercial and industrial rooftop solar in Vietnam

The loan will be used to support the further development and operation of solar PV systems located on the rooftops of commercial and industrial businesses across the country. The financing package comprises of a US$3 million A loan from ADB’s ordinary capital resources and US$10.8 million parallel loans from FMO, a climate fund managed by responsAbility Investments AG, and Societe Generale, with ADB working as the mandated lead arranger. 

A US$3 million grant from the Climate Innovation and Development Fund (CIDF), administered by ADB will also be provided. The grant offered by the international commercial bank will help by addressing two critical hurdles in financing solar assets with a long economic life in the country, including the lack of long-term dong funding at a fixed interest rate, along with the potential volatility of the VND–US$ dollar exchange rate. 

“As Asia and the Pacific’s climate bank, ADB is increasingly focused on mobilizing private capital to finance renewable energy projects that the region urgently needs,” said Suzanne Gaboury, director general of Private Sector Operations for ADB .

 “Solar PV rooftop offers an efficient way for Vietnam to deploy substantial amounts of additional renewable energy capacity while providing reliable, low-cost energy to consumers, which helps to attract and retain business and enhance Vietnam’s global competitiveness,” she noted.

This represents ADB’s first time financing of a solar PV rooftop portfolio for the commercial and industrial segment in the nation. Rooftop solar panels are an emerging form of renewable energy supply in the nation, with its adoption in this sector being hindered by a high upfront costs coupled with limited financing channels. With a planned total installed capacity of up to 32.3 megawatts at its peak, this project is set to increase clean energy supply to the sector by at least 31.5 gigawatt-hours annually, reducing 15,530 tonnes of carbon dioxide emissions by 2025.

“Embedded within our core business is a profound commitment to development impact, and our collaboration with ADB uniquely aligns with our corporate mission toward innovative power distribution and driving energy transition," said Sebastien Prioux, chief executive officer of GreenYellow Vietnam .

“ADB’s instrumental role in fostering connections among like-minded partners is integral to our collective journey in actively advancing sustainable development,” he added.

CIDF is a blended finance facility managed by ADB, established in September, 2021, with an initial US$25 million philanthropic commitment from Bloomberg Philanthropies and Goldman Sachs. The fund has the potential to unlock up to US$500 million in private sector and government investments in support of sustainable low-carbon economic development. 

First established back in 2007, GreenYellow is a French energy transition partner, specialising in decentralised solar photovoltaic production, as well as energy efficiency, storage, and monitoring services. It currently operates in 16 countries across Asia, Africa, Europe, and South America, entering the Vietnamese market in 2019. GreenYellow is responsible for the development, funding, and operation of infrastructure projects, enabling its clients to produce local and competitive green power, reduce their energy consumption, and fast-track their decarbonisation.

ADB is therefore fully committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and Pacific region, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members, 49 of whom are from the region.