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Solar Esco developing solar energy project at Tong Hong Vietnam

Released at: 15:33, 06/07/2019

Solar Esco developing solar energy project at Tong Hong Vietnam

Photo: SolarBK

Shoe manufacturing plant to reduce CO2 emissions by using solar power system from Solar Esco.

by Hung Cao

A grid connection ceremony for a 460 kWp solar power system was held on July 3 at the Tong Hong Vietnam Tannery Co. in Tan Thanh district, southern Ba Ria Vung Tau province, which specializes in manufacturing sports shoes. The project was developed by the Solar Esco JSC, a member of SolarBK, and was installed on the Tong Hong plant’s roof with Solar Esco capital.

The project has a total installed capacity of 460 kWp, producing about 679,530 kWh of electricity each year for Tong Hong and helping it reduce CO2 emissions by about 578 tons a year.

Tong Hong will save at least 5 per cent on the cost per kWh and contribute to reducing greenhouse gas emissions in each product, which meets its own standards. After 15 years (the lifespan of the agreement), Solar Esco will hand over the solar power plant to Tong Hong, which will use it for next 10-15 years.

As part of the strategic supply chain of Puma, a large German multinational company specializing in manufacturing footwear and sports accessories, Tong Hong is required to conform with the environmental policy Puma applies to its suppliers. One of the requirements is limiting the reduction of greenhouse gas emissions in the production process, with installing a solar system being an effective and easy-to-measure solution.

Through the VIP program on Clean Energy and Energy Saving, which promotes sustainable production in the textile and apparel industry and is from the International Finance Corporation (IFC) in partnership with a number of global brands including Puma, Solar Esco was shortlisted for being a prestigious supplier working directly with Tong Hong.

In a short period of time, Tong Hong and Solar Esco officially signed an agreement and SolarBK implemented the solar power project for the Ba Ria Vung Tau plant. Solar Esco will directly participate in the development and the investment in the solar power system, using IREX solar panels and with construction following Tong Hong’s specific requirements.

With the ESCO (Energy Service Company) form of investment, Solar Esco will provide total solutions in consulting, designing, installing, operating, financing, and managing the facility and earn revenue based on the energy saving efficiency brought about by the system.

This could be a popular energy-saving cooperation and investment type in the world, in which the project developer and investor (Solar Esco), the beneficiary company (Tong Hong), and the community all benefit. Tong Hong does not outlay any initial investment, saving electricity costs and meeting the emission reduction standards set by Puma. Meanwhile, Solar Esco must always ensure stable operations to obtain electricity fees from Tong Hong, ensuring the project’s investment efficiency for the 15 years.

“We previously spent much time understanding solar and wind energy technology and perceived this as a good opportunity, with Puma helping us to install a solar energy system to reduce carbon emissions,” said Mr. Chen Chun Chi, Deputy General Director of Tong Hong Vietnam. “We will continue to expand this project to increase the renewable energy ratio and reduce carbon emissions.”

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