The Asian Development Bank (ADB) is set to finance the development of Southeast Asia’s largest floating solar PV power plant in Vietnam. The bank has agreed to allocate a loan of $37 million to Da Nhim–Ham Thuan–Da Mi Hydro Power (DHD) for the development of the floating solar power plant in Vietnam.

DHD will install the 47.5 megawatt floating solar power plant on the man-made reservoir of its existing 175 megawatt Da Mi hydropower plant in Vietnam. This will also be the largest first large-scale installation of floating solar panels in Vietnam.

The mega project is part of Vietnam’s plan to decrease its dependency on energy from dirty sources such as coal and boost energy production from renewable sources.

With regard to the floating solar plant, ADB Private Sector Operations Department Deputy Director-General, Christopher Thieme said that the pairing of hydropower and solar energy sources is a simple but highly innovative achievement. He stated that the same can now be replicated not only in Vietnam but throughout Asia and the Pacific.

Out of the $37 million allocated to the floating solar plant in Vietnam, around $15 million comes from the Canadian Climate Fund for private sectors in Asia, an initiative by the Canadian government to encourage Asian countries to adopt green projects.

Chairman of the Board of DHD Nguyen Trong Oanh told the media that, “This project aligns with DHD’s strategy of investing in renewable energy to decrease dependence on fossil fuel, contribute to energy security, mitigate climate change, and promote environmental protection and sustainable socio-economic development.”

Last month, ADB also agreed to support the development of the Tina River hydropower project in the Solomon Islands. Besides allocating a loan of $18 million, ADB will also provide the project with a grant of $12 million.