CME Solar Investments (CMES), a Vietnamese renewable energy startup, has concluded a US $12 million debt funding transaction with Switzerland-based impact investor responsAbility.
CMES will use the funds to develop green energy in Vietnam’s commercial and industrial (C&I) sectors. Through the “Zero Cost Investment” business model, the company intends to deploy several projects that will allow its clients to directly consume green energy.
“We are bullish on the potential of Vietnam’s solar sector, especially adoption by C&I off-takers who are keen to minimise operational costs, now more than ever before,” said Sameer Tirkar, principal climate finance APAC for responsAbility.
CME Group, which was founded in 2018, uses the Zero Cost Investment model to be totally responsible for the investment, installation, operation, and maintenance of solar systems for consumers.
The solar energy company claims to have serviced over 100 clients from 20 different sectors. It has also installed over 200 million MWp and annually generates over 2GWh of power.
“Sustainable growth, decarbonisation, and energy security are key themes for both developed and emerging markets globally. We are on the right path to join other global developers to create a better world,” said Tuan Dieu Chung, CEO of CMES.
The firm says that its end-to-end solutions encompassing the whole value chain of design, engineering, procurement, and O&M leaders can take complete control of each project’s quality, timeliness, and prices.
According to a press release, CMES consumers can utilise green energy at special pricing lower than Vietnam Electricity Groups. Its clients include Tan Son Nhat International Airport, Adidas R&D Center, and Hwaseung Vina.
Furthermore, CMES has warehouses with ready inventory, removing the need for delivery lead times and ensuring project completion on schedule.
The corporation is backed by the Vietnam Oman Investment Fund, a sovereign fund founded by the Oman Investment Authority and the State Capital Investment Corporation of Vietnam.
Meanwhile, responsAbility manages $3.5 billion in assets to invest in over 250 completely ESG-managed (Environmental, Social, and Governance) enterprises across 68 emerging markets.
So far, responsAbility has distributed over $10 billion in private financing and private equity to firms in the financial inclusion, sustainable food, and climate finance sectors whose business models directly promote the United Nations’ Sustainable Development Goals.
The renewable energy sector has gained traction, with widespread acceptance worldwide. According to Vietnam Electricity, the total installed capacity of solar electricity in Vietnam as of December 2020 was roughly 19,400 MWp.
