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JLL: Renewable energy investment growing

Released at: 15:50, 29/05/2019

JLL: Renewable energy investment growing

Photo: JLL Vietnam

Latest JLL report notes the necessity of alternative investments into the future.

by Ngoc Lan

Vietnam possesses geographical characteristics suitable for the production of many renewable energy types, according to Mr. Stephen Wyatt, Country Head of JLL Vietnam.

JLL’s report released on May 27 noted that institutional investors from around the world have announced plans to invest across the energy infrastructure sector in recent months. This is boosting competition and maturity in the sector of alternative energy investment. A combination of increased effort to allocate capital to sustainable strategies and stiff competition among investors across the wider real estate and infrastructure asset class continue to put renewable energy strategies in focus.

Vietnam possesses a long coastline, a tropical climate, and a strong agricultural economy, thus creating diverse and abundant conditions for the exploitation and production of wind power, solar power, and bio-fuels.

Government initiatives are also further encouraging investors to enter the sector. The Ministry of Industry and Trade has released the third draft of the Prime Minister’s Decision on the mechanism for encouraging the development of solar power projects. This is the latest act in the government’s ongoing efforts to support the renewable energy industry.

“When investors see the government is willing to support their investment with favorable initiatives, the sustainable sector will become a magnet for investment,” Mr. Wyatt said.

One noteworthy project this year is the BIM solar power farm in south-central Ninh Thuan province, developed by Vietnam’s BIM Group in partnership with the Philippines-based AC Energy. The solar farm is composed of three facilities with a combined capacity of 330MW, making it the largest of its kind in Southeast Asia.

Mr. Wyatt, however, added that there is immense pressure on the current power grid in Vietnam and energy prices are expected to rise due to an increase in development activity and consumer demand, especially in major cities and industrial zones. “It is incredibly important that this type of alternative investment plays a dynamic role in the future growth of the country,” he added.

Around the world, cities are gearing up for renewable power. In the US, Chicago plans to power all city properties with wind and solar energy by 2025, equating to more than 900 buildings. Atlanta has committed to reaching 100 per cent renewable energy by 2035, but municipal buildings must reach that goal by 2025.

Across Asia, developers and governments are slowly but steadily experimenting with sustainable building approaches and renewable energy to help reduce the region’s enormous energy consumption. China is making enormous strides to catch up with Asia’s leader in sustainability, Singapore.

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