Disputes Over Tariffs and Compliance Could Derail $13 Billion in Clean Energy Investments

Singapore’s energy companies, SP Group and Sembcorp Industries, find themselves caught in the midst of a major policy shift in Vietnam, which is threatening to undermine billions of dollars in renewable energy (RE) investments. The two firms are among 19 global companies that may be impacted by Vietnam’s sudden reversal of its clean energy incentives.

The dispute concerns 173 renewable energy projects, collectively valued at approximately US$13 billion, which now face significant uncertainty following a midstream policy review. SP Group and Sembcorp’s solar farms, as part of this group, are directly affected. This includes major projects such as the Gaia solar farm in Long An province, which was Sembcorp’s first utility-scale acquisition in Vietnam, with a capacity of 100 MWp.

According to recent information obtained by The Business Times, the review of incentive eligibility has sparked a compliance dispute, with these projects now under scrutiny. Affected by this shift, a total of eight projects – all majority-owned by Singaporean firms – could face disruptions. Together, these projects hold an installed capacity of over 400 MWp.

The situation is drawing concern from both local and international investors, particularly as it follows a broader trend of regulatory instability in the region. The outcome of this review could have a lasting impact on the attractiveness of Vietnam as a destination for renewable energy investments.