Japanese utility company JERA, through its subsidiary JERA Asia, has agreed to purchase a 35.1 per cent stake in Gia Lai Electricity (GEC), a Vietnam-based renewable energy company. For an undisclosed sum, JERA will purchase the stake from Armstrong South East Asia Clean Energy Fund and International Finance Corporation (IFC). GEC, a subsidiary of TTC Group, has a portfolio of renewable energy projects with a combined capacity of around 600 MW, including hydro, solar, and wind power plants.
By 2025, GEC intends to expand its power generation portfolio to 1.7 GW in order to meet Vietnam’s rising electricity demand and decarbonisation objectives. In its recently released corporate vision for 2035, JERA outlines its plans to expand its usage of renewable energy and low-greenhouse gas thermal power.
In February 2022, JERA announced that it would invest $1.4 billion over the next five years to create 1 GW of solar power farms in Japan, in collaboration with local energy developer West Holdings Corp. To help combat climate change, JERA also planned to increase its renewable energy capacity to 5 GW by 2025, up from approximately 1.5 GW presently.