ADB Signs $37 Million Loan For Vietnam’s First Large-Scale Floating Solar Project

The Asian Development Bank (ADB) has signed a loan agreement worth $37 million to support Viet Nam’s first large-scale floating solar power project. The financing has been provided to the Da Nhim–Ham Thuan–Da Mi Hydro Power Joint Stock Company (DHD), marking a significant milestone in the country’s renewable energy transition. The project will involve the construction of a 47.5 MWp floating solar photovoltaic (PV) plant on the reservoir of DHD’s existing 175 MW Da Mi hydropower plant. Once operational, it is expected to become the largest floating solar installation in Southeast Asia.

The project combines floating solar technology with an existing hydropower facility, allowing clean electricity to be generated from the same reservoir. By integrating solar and hydropower, the initiative aims to improve the efficiency of renewable energy generation while making better use of existing infrastructure. According to ADB, the project will help increase the share of renewable energy in Viet Nam’s power mix and reduce dependence on imported fossil fuels, particularly coal.

ADB also believes the project could serve as a model for similar developments across Viet Nam and other countries in Asia and the Pacific. Floating solar projects on hydropower reservoirs offer an efficient way to expand renewable energy capacity without requiring large areas of additional land, making them an attractive option for countries seeking cleaner energy solutions.

DHD, a subsidiary of the Viet Nam Electricity Power Generation Corporation 1, currently owns and operates four hydropower plants with a combined installed capacity of 642.5 MW. The company contributes around 1.7% of Viet Nam’s total power generation capacity. Company officials said they are proud to lead the country’s first floating solar project on a hydropower reservoir, describing it as an important step in their long-term renewable energy strategy. They added that southern Viet Nam’s reservoirs have significant untapped potential for floating solar development, which could support energy security, climate action, and sustainable economic growth.

The financing package includes a $17.6 million loan from ADB’s ordinary capital resources. It is complemented by $15 million in concessional cofinancing from the Canadian Climate Fund for the Private Sector in Asia and its follow-on fund, both established by the Government of Canada to encourage private investment in climate-related projects. An additional $4.4 million parallel loan comes from the Leading Asia’s Private Infrastructure Fund, supported by the Japan International Cooperation Agency (JICA), which promotes sustainable private infrastructure investments focused on reducing carbon emissions and improving energy efficiency.

The project reflects ADB’s continued commitment to supporting sustainable infrastructure and clean energy development across Asia and the Pacific. By introducing floating solar technology on an operational hydropower reservoir, Viet Nam is taking an important step toward diversifying its renewable energy portfolio while strengthening long-term energy security and supporting its climate goals.