Sumitomo Corporation has acquired a 49% stake in Mekong Electric Power Engineering and Development Joint Stock Company, the owner of the Dak Di 1 and Dak Di 2 run-of-river hydropower projects in Da Nang, Vietnam. The purchase was made from Vietnam-based renewable energy developer GreenSpark Group.
The Dak Di 1 and 2 plants, which began operations in 2022, have a combined capacity of 48MW and operate under a 20-year power purchase agreement with Vietnam Electricity (EVN). This marks Sumitomo Corporation’s first investment in hydropower in Vietnam.
The company said the investment supports Vietnam’s efforts to expand renewable energy capacity and achieve carbon neutrality by 2050. Hydropower is viewed by the Vietnamese government as a key baseload power source to help stabilize the grid as renewable generation increases.
Sumitomo Corporation plans to use this project as a foundation for further investments in renewable energy in Vietnam. The company is also exploring opportunities to supply electricity through the country’s upcoming Direct Power Purchase Agreement (DPPA) system to its industrial parks and smart city projects, aligning with its broader decarbonization strategy.
