Nho Que 1 Hydropower Plant (32MW)… and Nhi Ha 1 Solar Power Plant (50MW)…

Chubu Electric Power Co., Inc. (Chubu) has recently participated in a bid for a partial share acquisition of Bitexco Power Corporation (BPC). BPC is a subsidiary of the Bitexco Group of Companies, which 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.

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