On June 28, 2021, Kejuruteraan Asastera Bhd (KAB), a Malaysian mechanical engineering company, signed an agreement with Janakuasa Pte., Ltd. to enter the renewable energy market in Vietnam through its subsidiary KAB Energy Power Sdn.Bhd. The partnership aims to obtain a majority stake in three hydropower projects in Vietnam.
introduction to the partnership
The agreement between KAB and Janakuasa will lead to the establishment of a special purpose company that will acquire a majority stake in three hydropower stations in Vietnam, with a total installed capacity of 180 MW. These projects have signed a valid power purchase agreement with the Vietnam Power Company, with a validity period from January 2030 to 2039, and commercial activities starting from 2015 to 2019. According to Datuk Lai Keng Onn, managing director of KAB, the company is committed to developing its green energy solutions business and expanding its influence in Asia. “We are proud to incur establishment of a synergistic partnership with Janakuasa because we can use their expertise,” he said.
vietnam’s energy demand and growth prospects
Janakuasa’s President Ti Chee Liang stated that Vietnam is the most promising rising star in ASEAN’s economic growth and population growth, with energy demand growing exponentially. Datuk Lai Keng Onn added that given the prospects for economic growth and population growth, Vietnam’s energy demand has grown exponentially, making it an attractive destination for investment and development of various renewable resources in Southeast Asia. Efforts to expand its renewable energy portfolio in Vietnam and help the Vietnamese government achieve its renewable energy goals as soon as possible are underway. Both KAB Energy Power and Janakuasa will actively seek to expand their renewable energy portfolio in Vietnam and help the Vietnamese government achieve its renewable energy goals as soon as possible.
janakuasa’s experience and investments in vietnam
Janakuasa is an experienced private energy investor, headquartered in Malaysia and Singapore, and a leading investor in the thermal and renewable energy sectors in Vietnam. The company has been developing Ecotech wind farm projects since 2015, including 300 MW wind power and 200 MW small wind power. Vietnam is building and developing hydropower stations, and Janakuasa and its partners have teamed up to build two power plants in Vietnam, including the 1,200 MW Duyen Hai 2 coal-fired power plant in Tra and the 78 MW Hip Thanh wind farm. With its experience and investments in Vietnam, Janakuasa is well-positioned to partner with KAB in the renewable energy sector.
vietnam’s renewable energy targets and growth
The rapid growth of Vietnam’s economy and population has promoted the demand for new energy sources. The country’s strong wind and solar resources make it an attractive destination for investment in various renewable energy sources in Southeast Asia. Vietnam has set important targets for renewable energy, aiming to increase dependence on renewable energy from 0.5% in 2016 to 25% by 2030. According to the International Energy Agency, Vietnam has the potential to become a leader in renewable energy in Southeast Asia, with solar and wind power being the most promising sources. The partnership between KAB and Janakuasa is expected to contribute to Vietnam’s renewable energy growth and help the country achieve its targets.
future plans and prospects
After the successful cooperation, KAB Energy Power and Janakuasa will actively seek to expand their renewable energy portfolio in Vietnam and help the Vietnamese government achieve its renewable energy goals in the shortest possible time while contributing to the country’s GDP growth. The partnership is expected to create new opportunities for investment and development in the renewable energy sector in Vietnam, and both companies are committed to working together to achieve their goals. As Datuk Lai Keng Onn said, the partnership with Janakuasa is a synergistic one, and both companies will work together to develop their green energy solutions business and expand their influence in Asia. With the growing demand for renewable energy in Vietnam and the partnership between KAB and Janakuasa, the future of renewable energy in the country looks promising. The partnership is expected to have a positive impact on the environment and the economy, and both companies are committed to working together to achieve their goals and contribute to the growth of Vietnam’s renewable energy sector.
