Swiss Investment Fund provides 20 million USD to support renewable energy development in Vietnam

A virtual signing ceremony for the long-term senior secured debt financing contract was held recently.

The 20 million package is the second investment of responsAbility into the CME Solar facility, bringing the fund's total investment in CME to date to 32 million USD and positioning it as the largest investment into non-financial institution in Vietnam as of 2023.

Previously, the first investment from responsAbility in 2021 was effectively implemented by CME, including a 31.5MWp rooftop solar project installed at Foxconn factory in the provinces of Bac Giang and Bac Ninh. The high-quality project saw fast implementation and was completed in just 3 months with advanced N-type PV technology.

With the new support in 2023, CME will continue to implement a series of projects, with a focus on increasing investment and development of commercial and industrial (C&I) solar initiatives across various sectors in Vietnam, covering manufacturing, electronics, food and beverage, and textiles, while expanding its reach to Southeast Asia.

Chung Dieu Tuan, CEO of CME, expressed optimism about the market outlook, highlighting the growing need for rooftop solar installations in Vietnam’s FDI manufacturing domains, especially electronics/semiconductors, textiles, and global MNC consumer sectors.

With the support of the Vietnamese government, Tuan also affirmed that the growth potential of the rooftop solar energy industry in Vietnam will continue to develop further in the next decade.

With the new long-term loan from responsAbility, CMES's goal is to install 50MWp of solar power, contributing to reducing 51,200 tons of CO2 emissions per year, while allowing end-users to claim around 70,000 Renewable Energy Certificates (REC), contributing to achieving the Government and UN's Net Zero targets towards a more sustainable and eco-friendly future.

A representative from responsAbility said that the 20 million USD investment into CME is a clear demonstration of the strong commitment to cooperation in sustainable energy development.

Building on the success of the first phase, the Swiss investment fund has expressed its belief that a strong partnership can help reduce barriers to green financing. It is also highly optimistic about Vietnam's solar sector, especially among C&I off-takers – who are increasingly focused on minimising operational costs.