Japan’s Biggest Power Generator to Invest in Vietnamese Renewables Company
- August 17, 2022
- Posted by: Quatro Strategies
- Category: Cleantech
Japan’s biggest power generator JERA announced on Tuesday that it will spend around ¥15 billion ($112 million) to buy a 35.1% stake in Vietnamese renewable energy company, Gia Lai Electricity JSC (GEC) to expand its business overseas. GEC is an affiliate of Vietnamese conglomerate TTC Corp. JERA has been looking to step up its decarbonization efforts to help tackle climate change.
The Japanese utility said in a statement that the deal was aimed at contributing to Vietnam’s economic growth and decarbonization efforts.
The deal, which is expected to be completed by October or November, will see JERA buy about 14% of GEC stake from International Finance Corp and another 21% from Armstrong Asset Management.
GEC holds about 600 megawatts (MW) of wind, solar and hydroelectric power assets, including projects under construction. The company aims to expand its power generation assets to 1.7 gigawatts (GW) by 2025, mainly solar and wind power.
After the acquisition, JERA’s renewable power assets through equity holdings will grow to nearly 2 GW.
JERA is a joint venture between Tokyo Electric Power and Chubu Electric Power
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