ecoligo launches 1 MW solar project in Vietnam on crowdinvesting platform

Staff at solar client Dong Nam Viet Packaging

Following its entry to the Vietnam market in February, German energy startup ecoligo will implement a solar project for Dong Nam Viet Packaging in Ben Cat, south-eastern Vietnam. The project was launched on Wednesday evening, offering investors the opportunity to contribute to the funding volume of 831,000 EUR. Investors will receive 6.50% interest p.a., which includes a 1.00% market entry bonus to celebrate this key milestone of the company’s first project in Vietnam.

The project has a total capacity of 994 kWp and will provide reliable, affordable energy to Dong Nam Viet Packaging. The packaging company is unaffected by restrictions imposed by Vietnam to contain the spread of the novel Coronavirus and remains active at 100% capacity, producing cardboard and paper packaging for national and international customers. Vietnam’s measures to have so far been very effective in limiting the spread of COVID-19, with no new cases reported since April 15th, and many manufacturing and other key businesses in Vietnam are permitted to continue operations.

Dong Nam Viet Packaging will benefit from energy cost savings and a lower environmental footprint. The solar power system is expected to save over 17,000 tonnes of CO2 emissions over the project lifetime. Vietnam is striving to grow the share of renewable energy in its energy mix, with measures such as the recently announced feed-in tariff for solar projects set to encourage new project implementation. Energy demand in the South East Asian country climbs by 10% yearly, making Vietnam a highly active market for renewable energy investments.

The roof-mounted photovoltaic system will be installed and maintained by Vu Phong Solar, a local engineering, procurement and construction company (EPC) that has implemented over 1000 systems during its 11-year span. ecoligo takes care of financing and asset management through its solar-as-a-service solution, which enables the packaging company to benefit from lower energy costs without the upfront investment or the need to maintain the system themselves.

In addition to Vietnam, ecoligo is active in Ghana, Kenya and Costa Rica, providing fully financed energy solutions that are tailored to meet the individual needs of commercial and industrial businesses in these markets.

“We’re really excited to launch our first project in Vietnam and are happy to provide a new sustainable investment opportunity to the crowdinvestors. The high level of market activity for renewable energy projects due to Vietnam’s growing electricity demand has been felt every day since our market entry and we look forward to announcing more large projects in the near future.”

Martin Baart, CEO of ecoligo

“Dong Nam Viet Packaging is certified to implement environmental and corporate social responsibility standards, so switching to clean energy is a prudent step for us. ecoligo is helping us to implement the first of two photovoltaic solar systems for our factory and we look forward to running on clean power.”

Vu Doc Duong, Director of Dong Nam Viet Packaging

More information can be found here.