Chubu Electric Power Co., Inc. to Invest in Vietnam’s Leading Private Renewable Power Company
September 28, 2021
Chubu Electric Power Co.,Inc.
Chubu Electric Power Co., Inc. (hereinafter “Chubu” or “we”) have participated in a bid for a partial share acquisition of Bitexco Power Corporation (hereinafter "BPC").
BPC is a subsidiary of the Bitexco Group of Companies (hereinafter “Bitexco Group”). Bitexco Group develops real estate, energy, commercial services and infrastructure, telecommunication, oil and gas exploration businesses in Vietnam. BPC owns and operates 21 hydropower plants and one solar power plant in Vietnam, with a total gross generation capacity of about 1,038 MW (as of February 2021). This capacity makes BPC a leading renewable energy company focused on hydroelectric and solar PV generation in the Vietnam private sector.
Chubu has successfully entered into a Share Purchase Agreement (“SPA”) with certain existing shareholders who are selling their shares in BPC and a Share Subscription Agreement with BPC. Furthermore, upon completion of the SPA, Chubu will enter a Shareholders’ Agreement with BPC and Bitexco Investment Corporation (the majority shareholder of BPC). Subject to certain regulatory approvals, Chubu will become a 20% shareholder of BPC. For Chubu, this is the first investment in Vietnam as well as abroad in a hydropower company.
Vietnam, where approx. 2,000 Japanese companies have positioned their business activities in as of December 2020, is experiencing remarkable population growth and economic development, and electricity demand is expected to continue to grow. While electricity demand reached 216.8 TWh in 2020, according to the draft Power Development Master Plan (PDP8) for 2021-2030 released by the Ministry of Industry and Trade of Vietnam it is expected to increase to 491.3 TWh (annual average growth rate of 8.5%) in 2030.
Furthermore, Vietnam has high potential for renewable energy compared to other ASEAN countries since many parts of the country have abundant solar radiation and suitable wind conditions both onshore and offshore. The Vietnamese government has also stated its plans to increase the ratio of renewable energy in the country, and thus further growth in the renewable energy sector is anticipated.
We will work to maximize the company value of BPC by utilizing the technology and expertise related to hydropower maintenance that we have accumulated over 70 years in Japan. With the anticipated continuing expansion of renewable energy in Vietnam, by becoming a vital partner of BPC we will contribute to the realization of a carbon-neutral society.
We will continue to develop our overseas business to enhance the resilience of our continuing business plan and contribute to global de-carbonization.
Bitexco Power Corporation
Hà Nội City, Socialist Republic of Vietnam
Renewable Energy Power Generation Business
Vu Quang Hoi
Nho Que 1 Hydropower Plant (32MW)
Nhi Ha 1 Solar Power Plant (50MW)
(Note1)Chubu Electric Power Company Netherlands B.V.（CEPCON）
(Note2)Vu Quang Sang, Vietnam Leather and Footwear JSC