On June 28, 2021, Malaysian mechanical engineering company Kejuruteraan Asastera Bhd (KAB) formalized an agreement with Janakuasa Pte., Ltd., marking its entry into Vietnam’s renewable energy market. Through its subsidiary, KAB Energy Power Sdn.
Bhd., the company will collaborate with Janakuasa to acquire a majority interest in three hydropower stations located in Vietnam. The partnership will establish a special purpose company tasked with securing a controlling stake in these facilities, which collectively have an installed capacity of 180 megawatts. Each of the three projects has executed a valid power purchase agreement with Vietnam Power Company.
These agreements are effective from January 2030 through 2039, with commercial operations having commenced between 2015 and 2019. KAB Managing Director Datuk Lai Keng Onn emphasized the company’s dedication to expanding its green energy solutions division and broadening its footprint across Asia.
He noted that the collaboration with Janakuasa leverages the latter’s established expertise, describing the arrangement as a synergistic partnership. Janakuasa President Ti Chee Liang highlighted Vietnam’s position as a standout economy within the Association of Southeast Asian Nations (ASEAN), citing rapid economic and population growth that has driven exponential increases in energy demand. Datuk Lai Keng Onn echoed this view, stating that these factors make Vietnam an appealing market for investing in and advancing various renewable energy sources in Southeast Asia. Both KAB Energy Power and Janakuasa plan to actively pursue opportunities to grow their renewable energy portfolio in Vietnam.
Their efforts aim to support the Vietnamese government in reaching its renewable energy objectives as quickly as possible. Janakuasa, a private energy investor headquartered in Malaysia and Singapore, has a track record in Vietnam’s energy sector.
Since 2015, the company has been developing Ecotech wind farm projects, including 300 megawatts of wind power and 200 megawatts of small-scale wind power. Additionally, Janakuasa and its partners have constructed two power plants in the country: the 1,200-megawatt Duyen Hai 2 coal-fired facility in Tra Vinh province and the 78-megawatt Hiep Thanh wind farm. This experience positions the company as a key partner for KAB in renewable energy ventures.
Vietnam’s expanding economy and population have fueled a growing need for new energy sources. The nation’s abundant wind and solar resources make it a prime destination for renewable energy investment in Southeast Asia.
The country has set ambitious targets, aiming to increase its reliance on renewable energy from 0.5 percent in 2016 to 25 percent by 2030. According to the International Energy Agency, Vietnam has the potential to become a regional leader in renewable energy, with solar and wind power offering the most promise. Following the initial cooperation, KAB Energy Power and Janakuasa intend to further broaden their renewable energy holdings in Vietnam.
Their goal is to assist the government in achieving its renewable energy targets in the shortest timeframe while also contributing to the nation’s gross domestic product growth. The partnership is expected to generate new investment and development opportunities within Vietnam’s renewable energy sector, with both companies committed to advancing their green energy business and strengthening their presence in Asia.
