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IFC to finance sustainable renewable energy projects
World Bank Group member IFC and Statkraft Norfund Power Invest AS (SN Power) have agreed to develop renewable energy alternatives to fix the gaps in Viet Nam's electricity demand.
"This partnership with IFC will allow SN Power to achieve synergy by finding viable hydropower projects that we can develop and operate sustainably," Erik Knive, SN Power's Executive Vice President for Southeast Asia, said.
Anita George, IFC Director for Infrastructure, said, "We hope that this joint development agreement will pave the way for a strong portfolio of renewable energy projects and help meet the country's growing demand for power."
The joint development agreement will enable IFC, acting through IFC InfraVentures, an early stage project development fund for IDA (International Development Association) countries, and SN Power to develop an investment strategy, policy, and guidelines to address Viet Nam's growing demand for power.
The partners will acquire operating assets and invest in greenfield projects to build up a portfolio of renewable energy investments in the country.
Viet Nam now faces recurrent blackouts, which pose a threat to future growth and make the need for more reliable power urgent, IFC said.
It will be IFC's first investment in Viet Nam through IFC InfraVentures.
IFC said Viet Nam's economy had grown rapidly since the start of the country's liberalisation policies; however, the electricity supply had not been able to meet the growing demand.
"We believe we can strengthen Viet Nam's long-term renewable generating capacity through our power market experience and technology transfer," Knive said.
SN Power, who is a Norwegian industrial investor in the power sector, and IFC have collaborated previously on several of SN Power's global investments in wind and hydropower plants in Chile, India, and the Philippines.
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