Making news

Renewable energy companies thrive on rising demand

In the first half of 2021, renewable energy projects, especially solar power, brought great profits to investors, boosting the sector's stocks.

Bamboo Capital JSC (BCG)’s second quarter financial result showed that its net revenue rose nearly 56 percent year-on-year to 814.3 billion VND (35.8 million USD), resulting in a profit after tax of 315.56 billion VND, over 16.8 times higher than the same period last year.

In the first half of this year, the company’s net revenue reached 1.4 trillion VND, up 59.7 percent, with the profit after tax of 478.3 billion VND, 17.6 times higher than last year.

In 2020, Vietnam completed and successfully connected more than 100,000 rooftop solar power systems to the national grid, Pham Minh Tuan, CEO of BCG Energy Joint Stock Company (BCG Energy), a subsidiary of BCG, told The rooftop solar power segment has great potential in the near future on the rising demand for electricity.

BCG Energy will continue to carry out many renewable energy projects to reach the target of 2.0 GW by 2023, while diversifying its investment portfolio with floating solar, wind power and liquefied natural gas to power projects in the future.

In early August, BCG Energy and SP Group (Singapore Power Group), entered into a joint venture to invest in the field of rooftop solar power in Vietnam, with the goal of reaching a capacity of 500 MW of rooftop solar power by 2025. The joint venture also announced the first rooftop solar power project on the factories of Vinamilk.

Sao Mai Group Corporation (ASM) also said that its two solar power plants are sources of stable revenue and high profits of the company.

During the COVID-19 pandemic, as many industries face difficulties, solar power is still profitable with no payment risk and simple operation management.

With high net profit margin, which is not less than 40 percent of revenue, the solar power sector contributes nearly 1 trillion VND to ASM each year in revenue and nearly VNĐ400 billion in profit.

In the near future, Sao Mai will put the project of solar power exploration on the premises of the enterprise's factory in An Giang into operation and implement the agricultural project under the solar panels.

In the first half of 2021, Sao Mai posted consolidated net revenue of nearly 6.3 trillion VND, with profit after tax of 252 billion VND.

Sao Mai has just received nearly 167 billion VND funded by the Japanese Government after Sao Mai - An Giang Solar Power Plant (phase 3-4 with capacity of 106 MWp) participating in the JCM programme managed by the Ministry of Environment, Government of Japan, to reduce greenhouse gas emissions over 17 years.

This is the first land-based solar power plant in Vietnam to receive a grant under the JCM programme.

Meanwhile, during the first six months of the year, the Truong Thanh Development and Construction Investment JSC (TTA) recorded a growth of 95.2 percent in net revenue to nearly 331.1 billion VND. Its profit after tax reached 76.7 billion VND, up nearly 82 percent over last year.

In its statement to the Sate Securities Commission of Vietnam, the company said that the growth was contributed by revenues from two new plants, including the Pa Hu Hydropower Plant, starting operation in the fourth quarter of 2020, and the Nui Mot Lake Solar Power, on air in January 2021.

Moreover, the weather conditions as well as the transmission system are more favorable compared to the same period last year.

The Phuong Mai wind power plant invested by Truong Thanh was put into operation in the second quarter of 2021.

The company determined to boost the development of solar and wind power projects. Its General Meeting of Shareholders in 2021 approved the policy of conducting surveys, preparing to invest in three solar power projects, three wind power projects and pumped storage hydropower project. All these projects are deployed in Ninh Thuan province.

Of which, Truong Thanh is particularly interested in Phuoc Hoa pumped storage hydropower project with a capacity of 1,200 MW.

In 2021, it plans to achieve 680 billion VND in revenue and 150 billion VND in after-tax profit./.