USAID Vietnam Low Emission Energy Program (V-LEEP) Support to Bamboo Capital Group

Nguyen Ho Nam in 2011, has shifted its focus to renewable energy, particularly solar and wind power, in Vietnam. The firm's entrepreneurial success coincided with the growing need for electricity in Vietnam, and the recognition of renewable power as a means to enhance energy security, save money on imports, and reduce environmental pollution. Bamboo Capital Group has valuable experience in starting and managing diverse business operations in Vietnam, and much of this expertise is transferable to the solar industry. The firm's entry into the solar business was facilitated by the Vietnamese government's policy to encourage private investment in renewable energy. In 2017, the Ministry of Industry and Trade launched a policy to provide long-term preferential power purchases to companies that could bring large solar photovoltaic (PV) plants into operation by June 2019. Bamboo Capital Group, along with dozens of leading Vietnamese businesses, seized the opportunity to earn the feed-in-tariff (FiT). The firm's experience in acquiring and developing land, for example, is a key step both for a seafood processing plant and for a solar PV plant. However, many aspects of the solar business are unique and critical to success. Selecting advanced solar technology and properly siting PV panels can dramatically improve power yields and profits. Negotiating carefully with engineering, procurement, and construction contractors can ensure that projects are built rapidly and correctly. Adopting leading operations and maintenance practices can ensure that projects meet their performance expectations. To address these challenges, Bamboo Capital Group turned to the US Agency for International Development (USAID) Vietnam Low Emission Energy Program (V-LEEP) for support. V-LEEP's support to Bamboo Capital Group began with an open discussion of its capacity, project pipeline, and ambitions for renewable energy investment. V-LEEP then helped Bamboo identify potential equity and debt partners interested in financing clean energy, assess potential technical service providers, and advise on leading practices for construction contracting. Concurrently, V-LEEP worked with investors such as large Vietnamese commercial banks to help train lending officers on how to evaluate financing applications from solar power projects. One of the financial institutions that V-LEEP trained is the major lender to Bamboo's new project in the southern province of Long An. Bamboo Capital Group's Long An solar project is a significant undertaking, with a capacity of almost 41 Megawatts (MW) when operational. This will be enough electricity to power about 26,000 Vietnamese households for a full year. Bamboo is confident that its Long An solar project will win the "race to the FIT," and the firm's senior management invited USAID Vietnam to join the groundbreaking ceremony on September 16, 2018, to show appreciation. As the Long An project comes into operation, V-LEEP will continue to support Bamboo by helping it develop a comprehensive and appropriate approach for operations and maintenance that ensures long-term power production.