ADB, GreenYellow Sign Deal for Commercial and Industrial Rooftop Solar in Vietnam

Image: Courtesy of GreenYellow

The Asian Development Bank (ADB) and GreenYellow Smart Solutions Vietnam (GreenYellow), have signed a loan agreement of up to US$13.8 million for rooftop photovoltaic solar systems to help increase the supply of clean and affordable energy for commercial and industrial consumers in Vietnam.

The financing package comprises a US$3 million A loan from ADB’s ordinary capital resources and US$10.8 million parallel loans from FMO, a climate fund managed by responsAbility Investments AG, and Societe Generale, with ADB as the mandated lead arranger.

A US$3 million grant from the Climate Innovation and Development Fund (CIDF), administered by ADB, will also be provided.

CIDF is a blended finance facility managed by ADB, established in September 2021 with an initial US$25 million philanthropic commitment from Bloomberg Philanthropies and Goldman Sachs. The fund has the potential to unlock up to US$500 million in private sector and government investments to support sustainable low-carbon economic development.

The loans will support the development and operation of solar PV systems located on the rooftops of commercial and industrial businesses across the country.

Rooftop solar is an emerging form of renewable energy supply in Vietnam and its adoption in this sector has been hindered by high upfront costs and limited financing channels. With a planned total installed capacity of up to 32.3 megawatts at its peak, this project is set to increase clean energy supply to the sector by at least 31.5 gigawatt-hours annually, reducing 15,530 tons of carbon dioxide emissions by 2025.

“Embedded within our core business is a profound commitment to development impact, and our collaboration with ADB uniquely aligns with our corporate mission toward innovative power distribution and driving energy transition,” said GreenYellow Vietnam Chief Executive Officer Sebastien Prioux. “ADB’s instrumental role in fostering connections among like-minded partners is integral to our collective journey in actively advancing sustainable development.”

This is ADB’s first financing of a solar PV rooftop portfolio for the commercial and industrial segment in Vietnam.