JERA, through its subsidiary JERA Asia, is taking a stake in Vietnamese renewable energy producer Gia Lai Electricity Joint Stock Company (GEC).
JERA Asia has signed a share purchase agreement with International Finance Corporation (IFC) and Armstrong SE Asia Clean Energy Fund to acquire all their equity interests in GEC’s outstanding shares.
After the completion of the acquisition, JERA will indirectly hold approximately 35.1% of the shares.
GEC, which is listed on the Ho Chi Minh City Stock Exchange, owns and operates mainly hydro, solar, and wind power projects with a capacity of approximately 600MW, including projects under construction.
Vietnam has abundant renewable energy sources and has experienced significant growth in renewable power generation in recent years.
The Vietnamese Government is expected to continue this growth by setting ambitious targets for renewable energy in the next national Power Development Plan.
In order to support the country’s growing electricity demand and decarbonisation, GEC aims to become a leader in the renewable energy sector in the country by expanding its power generation assets to 1.7GW by 2025, comprising mainly solar and wind power
JERA Asia CEO Toshiro Kudama said: “Since our investment in Phu My 2.2 in 2005, we have viewed Vietnam as an important market in ASEAN and have sought opportunities to strengthen ties between our two countries.
“As one of Japan’s leading energy companies, our objectives are to contribute to both economic growth and decarbonisation across Asia, and this investment represents another milestone in this effort.
“As a shareholder in GEC, we will support GEC’s expansion of renewables in Vietnam.”