Week In ASEAN: Empowering Vietnam’s Renewable Energy Future: Decree 80 And The DPPA Mechanism; Indonesian House Approves IDR 3 Trillion For PLN To Achieve 100% Electrification In Remote Areas; And More

Empowering Vietnam’s Renewable Energy Future: Decree 80 and The DPPA Mechanism
the Vietnamese government issued Decree No. 80/2024/ND-CP, a significant policy shift allowing direct power purchase agreements (DPPA) between renewable energy generators and large electricity users. This decree marks a milestone in Vietnam’s renewable energy landscape, signaling a robust commitment to transitioning away from fossil fuels and fostering an environment conducive to sustainable development. The DPPA mechanism is expected to attract private sector investment, facilitate corporate renewable energy integration, and propel Vietnam towards its net-zero emissions goals. The DPPA mechanism under Decree 80 introduces a market-driven approach to renewable energy procurement, enabling direct transactions between renewable energy producers and large electricity consumers. This framework diverges from the traditional model where Vietnam Electricity (EVN) monopolizes electricity distribution, thereby opening up the market and providing more flexibility and transparency for investors and consumers alike.

Indonesian House Approves IDR 3 Trillion For PLN To Achieve 100% Electrification In Remote Areas
Commission VI of the Indonesian House of Representatives (DPR RI) has approved the proposed State Capital Participation (PMN) for PT PLN (Persero) amounting to IDR 3 trillion for the year 2025. This funding is allocated to support PLN’s efforts in achieving a 100% Electrification Ratio and Electrified Village Ratio (RDB), particularly in the Disadvantaged, Frontier, and Outermost (3T) regions. Muhammad Sarmuji, a member of Commission VI and leader of the Working Meeting, expressed strong support for the allocation. “We fully support the strengthening of village electricity and the installation of electricity networks to remote areas,” Sarmuji stated. Minister of State-Owned Enterprises Erick Thohir emphasized the broader economic benefits of this initiative. “We hope that this PMN can be right on target and provide more benefits for economic growth and policies that sustain overall growth,” Thohir said during the meeting at the DPR RI Building in Jakarta.

DOE Philippines Unveils 2nd Round Of Microgrid Selection To Power Underserved Areas
The Department of Energy (DOE) continues its mission to improve living conditions in underserved areas across the Philippines with the launch of the 2nd round of Competitive Selection Process (CSP) for Microgrid System Providers (MGSP). This initiative aims to electrify forty-one lots, encompassing seventy-five identified unserved and underserved areas nationwide. These areas, originally part of the 98 clusters offered during the 1st round of MGSP-CSP in November 2023, are home to 12,212 households. They have been selected based on their higher demand for electricity and more concentrated population, making them viable candidates for microgrid installations.

Thailand’s EGAT, AIT, And CSU Collaborate On Innovative Solar Module Development At Sirindhorn Dam
In a significant partnership aimed at advancing solar energy technology, the Electricity Generating Authority of Thailand (EGAT), the Asian Institute of Technology (AIT), and Colorado State University (CSU) have joined forces to research and develop Edge Sealed Modules (ESMs). These modules are designed to be low-cost and easy to recycle, promising to revolutionize solar power generation efficiency. The collaboration was formalized through an online Memorandum of Understanding (MOU) signing ceremony. Mr. Thidade Eiamsai, Deputy Governor – Power Plant Development and Renewable Energy of EGAT; Prof. Dr. Nitin Tripathi, Acting Vice President for Academic Affairs at AIT; and Prof. Kenneth F. Reardon, Associate Dean for Research at CSU’s Walter Scott, Jr. College of Engineering, participated in the MOU signing.

ILB Group To Acquire Armani Sinar And Solar Assets For RM98 Million To Boost Renewable Energy Capacity
ILB Group Berhad (ILB), a leading provider of rooftop solar power systems, has announced a significant acquisition to bolster its renewable energy capabilities. The company, through its wholly-owned subsidiary IL Energy Sdn Bhd (ILE), is acquiring a solar energy company and its assets for RM98 million in cash. Armani Sinar Sdn Bhd (ASSB), a registered PV service provider specializing in engineering, procurement, construction, and commissioning (EPCC) of solar energy projects, will be acquired for RM30 million. ASSB focuses on commercial and industrial (C&I) and residential buildings, and this acquisition is expected to significantly enhance ILB’s market share and operational capabilities in the renewable energy sector.

National Irrigation Administration Advances Chico River Irrigation With Solar Power In The Philippines

The National Irrigation Administration (NIA) aims to maximize the potential of the Chico River Irrigation Project through the integration of solar power, according to NIA Administrator Eduardo Guillen. The announcement was made during a news forum in Quezon City. Administrator Guillen explained that the implementation of solar panels would allow the project to generate its own electricity, addressing the current issue of insufficient local power supply which can only support one of the six pumping stations. He emphasized that the generated solar power would be used by the irrigation system for four to five months annually, enabling operators to sell excess electricity to the grid.

AIIB and SeABank Forge Landmark $75 Million Partnership to Propel Vietnam’s Green and Blue Energy Revolution

The Asian Infrastructure Investment Bank (AIIB) has signed a USD 75 million financing contract to support the issuance of green and blue bonds by the Southeast Asia Commercial Joint Stock Bank (SeABank). This marks the first blue bond issuance from Vietnam and AIIB’s inaugural investment in a blue bond. The project aims to bolster SeABank’s capital base, enabling it to expand financing for sustainable economic activities related to water and the sea. Additionally, the investment will help grow green assets, such as green buildings, renewable energy, and energy efficiency projects. Vietnam, a founding member of AIIB, possesses extensive coastlines with significant potential for developing a blue economy, aligning well with SeABank’s investment goals. AIIB Director General of Financial Institutions and Funds, Gregory Liu, emphasized the importance of mobilizing resources from financial and international credit institutions to support climate mitigation and adaptation.

Sime Darby Property and TNB Launch Joint Venture to Boost Sustainability in Malaysia

Sime Darby Property and GSPARX Sdn Bhd, a subsidiary of Tenaga Nasional Berhad (TNB), have announced a joint venture aimed at advancing sustainable renewable energy initiatives in Malaysia. This partnership will harness Sime Darby Property’s extensive asset portfolio and developments alongside GSPARX’s expertise in delivering rooftop solar projects. The joint venture is set to focus on financing, developing, and operating rooftop solar generation projects across Sime Darby Property’s assets and townships. Currently, 14 assets have been earmarked for the project, with the potential to generate up to 4.5 MW of solar capacity, marking a significant step towards a greener future. The venture aims to scale its solar capacity to 20 MW within five years and 50 MW within fifteen years.

MSpectrum and Citizen Finedevice Inaugurate Solar Project

MSpectrum Inc., the wholly owned solar subsidiary of the Manila Electric Company (Meralco), has successfully energized the solar rooftop facility of Japanese manufacturer Citizen Finedevice Philippines Corp. The inauguration ceremony featured notable officials including MSpectrum President and CEO Ma. Cecilia M. Domingo, MSpectrum Chairman Ferdinand O. Geluz, Citizen Finedevice President Tomoya Koyama, and Citizen Finedevice Administration General Manager Shunichi Kozu. The new 726 kilowatt-peak (kWp) solar project, located at Citizen Finedevice’s manufacturing facility in Sto. Tomas, is expected to generate approximately 1.055 GWh of clean energy annually. This initiative will enable Citizen Finedevice to reduce its carbon footprint by an estimated 751 metric tons per year, equivalent to planting over 34,500 trees and cutting down vehicle travel by more than 1.8 million kilometers.

IJM Land Teams Up With Progressture For Extensive Solar Integration In Property Developments

IJM Land Bhd, the property subsidiary of IJM Corp Bhd, announced a partnership with Progressture Power Sdn Bhd to jointly explore the deployment of up to 40 megawatts (MW) of solar power in future developments. Under the memorandum of understanding, IJM Land will integrate solar rooftop systems with a capacity of 25MW into residential developments. Additionally, the collaboration includes the development of a 15MW floating solar farm spanning 37.5 acres (15.2 hectares) at IJM Rimbayu. “This convergence of real estate and renewable energy opens up new growth opportunities within the property sector,” said Datuk Wong Tuck Wai, CEO of IJM Land. Under the partnership, IJM Land and Progressture will implement an energy-as-a-service model to oversee energy assets and services for homeowners throughout IJM Land’s townships.