Sembcorp - a major player in renewable energy for Vietnam

 

Sembcorp was one of the first investors in Vietnam, 25 years ago, and has many urban development and energy projects, including renewable energy. How would you evaluate the advantages and challenges for Vietnam in this field, especially after the Covid-19 pandemic?

Vietnam is one of Asia’s fastest-growing energy markets due to its large population and sharp economic growth. Despite a challenging 2021 as the fourth wave of the pandemic took a significant toll on its economy and people, Vietnam created a concrete foundation to bounce back stronger in 2022, with GDP growth expected to reach 6.5 per cent, according to the Asian Development Bank (ADB).

At the recent COP26 meeting in Glasgow, Vietnam shared its vision of reaching net-zero carbon emissions by 2050. With domestic electricity demand expected to grow by 10-12 per cent annually to 2030, the government is moving forward to develop renewable energy sources to ensure energy security and address the growing demand in a sustainable manner. This has created significant opportunities for investors in the renewable energy sector. For Sembcorp, we are able to cooperate with the government and local developers to share our global best practice and technological expertise, contribute capital, and help tackle the sector’s challenges.

Being a long-term partner of Vietnam for over 25 years, Sembcorp is committed to meeting its sustainability goals. As part of the Group’s strategy to transform its portfolio from brown to green, Sembcorp is scaling up its investment in renewables in Vietnam and hopes to contribute to Vietnam’s COP26 vision.

Sembcorp has a balanced energy portfolio of over 15GW, with more than 5.4GW of gross renewable energy capacity comprising solar, wind, and energy storage globally. By leveraging our sector expertise and global track record to deliver innovative solutions that support energy transition and sustainable development, Sembcorp hopes to share with Vietnam our experience across all renewable energy-related sectors, including wind, solar, and battery storage.

Can you tell us more about Sembcorp’s plans regarding renewable energy and sustainable development in Vietnam?

Vietnam is a core market in Sembcorp’s transformation strategy. Over the past 25 years, we have established eleven Vietnam - Singapore Industrial Parks (VSIPs), generating $15.6 billion of investments and creating more than 293,000 jobs in the country.

Sembcorp has also been a long-time power generation partner of Vietnam through the development of Phu My 3, the country’s first independent power project with a 746-MW combined-cycle gas turbine facility, which has been providing reliable energy to Vietnam over the last two decades.

Recently, we presented to Vietnam’s State President Nguyen Xuan Phuc four signed partnership agreements to develop a range of energy and urban solutions that will support Vietnam’s energy transition and sustainable development: our cooperation with Electricity of Vietnam (EVN) to power Vietnam’s economic growth and green sustainable development deals; the establishment of the EIU-Sembcorp Center for Sustainable Solution; the development of the 1,000-ha VSIP Binh Duong III; and the establishment of the Vietnam-Singapore i4.0 Innovation Center.

Last December, Sembcorp also announced a cooperative agreement with BCG Energy to jointly identify and develop a pipeline of up to 1.5GW of wind and solar projects in Vietnam, and earlier this year signed an MoU with the KN Energy Group on the development of renewable energy projects in Vietnam, including a 500-MWp floating solar power project in the central highlands’ Gia Lai province.

These cooperative efforts reaffirm our deep commitment to Vietnam, in which we co-develop large-scale renewable energy assets and find solutions to improve grid reliability and efficiency. Most importantly, they will be a platform to share experience and exchange ideas and capabilities to boost the energy transition agenda in the country.

It has been reported that Sembcorp will study the possibility of providing a range of solutions, such as micro-grid-integrated solar and battery storage, wastewater recovery, and electric vehicle charging infrastructure in Vietnam. Can you tell us more?

These solutions are part of the VSIP Binh Duong III masterplan, co-developed by Sembcorp and Becamex IDC (Becamex).

Envisioned to be a model of a smart and sustainable industrial park, it is designed to incorporate smart technology across operations, from energy, water, and waste use to traffic and security management. The use of real-time tracking devices to remotely monitor, analyze and optimize performance allow for enhanced visibility over operations, making the park more secure, reliable, and efficient for customers and workers.

As the study of these solutions is currently in the planning phase, we would be very excited to share more at a later stage.

During his recent State visit to Singapore, State President Nguyen Xuan Phuc visited the Sembcorp Tengeh Floating Solar Farm on Tengeh Reservoir, one of the world’s largest inland floating solar photovoltaic systems. Is a large-scale project like this feasible in Vietnam?

Absolutely! In addition to the 500-MWp floating solar power project in Gia Lai province, which Sembcorp is currently developing together with KN Energy, we are also exploring other floating solar projects around Vietnam.

Floating solar systems are ideal for land-scarce areas with sufficiently large water bodies. They also perform 5-15 per cent better than conventional rooftop solar PV systems because of the cooler reservoir environment. These systems require that developers have strong ESG (environmental, social, and governance) experience, particularly around biodiversity, to ensure that the systems do not unduly affect the ecosystem.

At Sembcorp, we pride ourselves in our strong ESG culture. In particular, our Sembcorp Tengeh Floating Solar Farm is one source of drinking water for our nation. Tengeh Reservoir also houses one of Singapore’s nature reserves, with considerably more wildlife than other parts of our urban city. With this in mind, we had to be extra careful in designing and developing our floating solar system, to ensure that the water remains safe for drinking and that the flora and fauna are minimally affected.

Sembcorp hopes to support Vietnam’s sustainable development and efforts in reaching its net-zero target, not only by developing and investing in floating solar systems but also in other renewable energy sectors, including onshore, nearshore, and offshore wind, rooftop solar, ground mount solar, and battery storage. We are confident that we can leverage our experience from the UK, India, China, and Singapore to contribute significantly to Vietnam.

As a female leader in a field dominated by men, how can women promote their role for the development of the industry?

The energy sector is an essential service and all of us are living on the same planet, working towards a more sustainable future.

Diversity and inclusion are key to harmonizing the different elements on earth. I believe that all individuals, regardless of gender, are able to bring different perspectives to the industry and have different roles to play, working together to build a brighter future for us and for the next generation. 

At Sembcorp, we are a united community of people who share a collective mission and vision, driven by our purpose to do good and play our part in building a sustainable future. There are no limits to what we can do.

As a female leader in the industry, I focus on the mission and vision of what we are trying to achieve as a corporate, for our community and for my family. I believe this is the best way to promote our role in this industry. Believe in your purpose, believe that you are doing a meaningful job. What you do is impactful and matters. The rest will follow.

I hope to see more women in our industry in the near future.