On 14 May 2021, Trungnam Group signed a strategic cooperation agreement with Hitachi Sustainable Energy Company (Hitachi SE), under Hitachi Group. This event has significant implications for Hitachi SE's renewable energy business market expansion in Vietnam. At the same time, this will mark a new step in attracting foreign investors to Trungnam Group's renewable energy projects.
To implement and operate wind energy projects, TNG invests in the Trung Nam Wind Power Plant project, which has a total investment capital of VND 4,000 billion, a capacity of 151.95 MW, an operating time of 2,785 hours/year, and an estimated output of 432,000,000 kWh/year. The 220 kV Thap Cham transformer station connects Trung Nam Wind Power Plant directly to the national grid system. The project is divided into 3 phases:
Unlike developing solar power projects process of developing wind power projects is more complicated due to high investment costs, time-consuming transportation and installation of equipment, and machine supply. In the context of the Covid-19, it was also more difficult. Trungnam Group, on the other hand, has overcome those challenges and completed the third phase of the project with the experience of a leading energy group. Furthermore, Trungnam Group has worked with world-class qualified and professional partners such as Enercon, Sany... In which, the turbines are supplied by Enercon Company (Federal Republic of Germany) has no gearbox technology with the advantage of being able to operate with low wind speeds of 2 -2.5m/s, the ability to catch the wind with an average speed of 7.1 m/s, higher than the stage 1 is 6.5 m/s. This is the turbine with the largest capacity in Vietnam. With the selection of advanced equipment, the criteria for the area of land occupied is reduced to only 0.14 ha/MW (compared with the prescribed land use rate of less than 0.35 ha/MW), significantly contributing to the efficient use of national resources.
Hitachi SE will own a 30% stake in Trung Nam Wind Power Plant as a result of this agreement, TNG and Hitachi will become important strategic partners in the development process. TNG, which owns 70% of the company, will continue to play a key role in the project's management and development. This event demonstrates that Hitachi highly values the quality of the Wind Power Project implemented by TNG, as well as the project's long-term and effective development in the future. Simultaneously, TNG will receive additional funds from partners and increase its autonomy capital to continue implementing renewable energy projects.
Trungnam Group has put 02 solar power projects in Thuan Bac district, Ninh Thuan province, and in Duyen Hai district, Tra Vinh province into operation with a total capacity of over 360MW, along with wind power projects in Thuan Bac with a total capacity of over 151.95MW. In addition, in 2020, Trungnam Group becomes the first private investor in Vietnam to build and put the 500kV substation and 220/500kV transmission line combined with the 450 MW Trung Nam Thuan Nam Solar Power Plant into operation. Trungnam Group is currently implementing several energy projects to reach the goal of connecting 10GW to the national grid by 2027. Trungnam Group is planning to build 900 onshore, offshore, and nearshore wind towers in localities such as Dak Lak, Gia Lai, Tra Vinh, Ninh Thuan.
Along with an economic and social growth rate of more than 6%, domestic energy demand grows at a rate of 9-10% per year. Vietnam is implementing many policies to encourage the development of renewable energy projects, not only to meet rising energy demand, but also to reduce greenhouse gas emissions, develop clean energy, and contribute to long-term development. Vietnam has set a target of producing 11,8GW of electricity from wind power by 2030.
Hitachi SE, along with its member companies, operates 30 wind power companies in Japan (total installed capacity is 248MW). Through these activities, Hitachi SE collaborates with the local community by providing a portion of the energy to promote agriculture under the cooperative agreement. With this first investment in Vietnam, Hitachi SE hopes to strengthen its strategic partnership with Trungnam Group in the development of new wind power projects, as well as the development of the renewable energy industry to contribute to Vietnam's long-term social and economic development.
Hitachi Capital Group positions “Environment/Energy”, “Mobility”, “Life” and “Sales Finance” as a key business, and pursue its development of new businesses to solve issues faced by companies and local communities while evolving into the new values which are enhancement of the collaboration with partners, shift to services and commercialization. In December 2020, Hitachi Capital announced its entry into the Solar Power Generation Business in Thailand. Furthermore, Hitachi Capital Group will continue to create and deliver new values based on SDGs to meet the ever-changing needs of society and customers, as a “Social Value Creating Company".
About Hitachi Capital :
Hitachi Capital Group globally aims at both solving social issues and its continued growth based on SDGs, as “Social Values Creating Company”. In December 2020, Hitachi Capital announced its entry into the Solar Power Generation Business in Thailand. In its “FY2019-FY2021 MidTerm Management Plan”, Hitachi Capital Group positions “Environment/Energy”, “Mobility”, “Life” and “Sales Finance” as a key business, and pursue its development of new businesses to solve issues faced by companies and local communities while evolving into the new values which are enhancement of the collaboration with partners, shift to services and commercialization, as well as, their combined business beyond finance field. Please access Hitachi Capital and HCT website for the details.
About Hitachi Sustainable Energy Ltd :
Company name: Hitachi Sustainable Energy Ltd.
Representative: Chairman: Kei Ishda
Headquarter: 3-2-2, Saiwai-cho, Hitachi City, Ibaraki Prefecture
Established: 1/3/ 2016
Business: Renewable energy
Capital, Shareholder:50 million yen (Investment rate: Hitachi Capital Corporation; 85,1%, Hitachi Energy Solution Ltd; 14,9%)