Contribution towards SDGs through JCM Model Projects(Shizen Energy Inc.)

Selected Year: 2022
Host Country: Viet Nam
Project Title: 40MW Onshore Wind Power Generation Project in Lao Bao Commune, Quang Tri Province
Representative Participant: Shizen Energy Inc..
Partner Participant: KUROTA MEXICO, S.A. DE C.V. ; BOT FINANCE MEXICO, S.A. DE C.V., SOFOM, E.N.R.
(Project Information URL)https://gec.jp/jcm/projects/22pro_vnm_06/

 

    

 

 

Project Overview 

The first Wind Power Project under JCM Projects financially supported by MOEJ
This project installed onshore wind power generation facilities with a capacity of 40 MW in Lao Bao Commune, Quang Tri Province, jointly implemented by Shizen Energy Inc. (hereinafter referred to as SHIZEN) and its Viet Namese partner Hai Anh Trading and Technologies JSC (hereinafter referred to as Hai Anh T&T)  for the JCM Subsidy Programme.
SHIZEN‘s subsidiary and Hai Anh T&T jointly established Hai Anh Quang Tri Wind Power JSC (hereinafter Hai Anh SPC) in Viet Nam to operate and maintain this wind power project. The electricity is sold to the Vietnam Electricity to increase the share of renewable energy in the national grid, which contributes to reducing dependence on fossil fuel power generation and greenhouse gas (GHG) emissions in Viet Nam.
This project marks the first wind power project under JCM Projects financially supported by Ministry of the Environment of Japan.

 

    

▲ Onshore Wind Power Project Owned and Operated by Hai Anh Quang Tri Wind Power JSC

 

Activities taken by Hai Anh SPC as the principal entity for the Wind Power Project

[Activities related to SDGs]
Hai Anh SPC implements the following activities:

〇 Supply of Clean Energy (Goal 7: Ensure access to affordable, reliable, sustainable and modern energy for all, among others)
As a direct contribution, Hai Anh SPC generates and supplies renewable energy, thereby contributing to the goal of ensuring access to affordable, reliable, sustainable, and modern energy.

〇 Local Hiring and Working Conditions (Goal 8: Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all, among others)
Hai Anh SPC prioritizes local hiring and supports regional economic development. Out of 24 employees, 20 are locally hired, which contributes to improving the skills of local residents and creating stable income opportunities. Also, creating fair and stable employment leads not only to regional economic growth but also promotes meaningful, fulfilling work. Furthermore, a safe and inclusive work environment and flexible work arrangements have been provided for the employees, in compliance with the regulation in Viet Nam concerning the prevention of harassment in the workplace.

〇 Women’s Empowerment (Goal 5: Achieve gender equality and empower all women and girls, among others)
Hai Anh SPC supports women’s participation in the workforce and leadership. Out of the 24 employees, 4 are women. Two of these women play important roles as Accounting Manager and Legal Manager. Hai Anh SPC is also committed to ensuring equal opportunities for women and men in hiring, promotion, and career development. There is no gender pay gap for the same job duties.

〇 Education and Training (Goal 4: Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all, among others)
Education and training, including lectures by local experts, On-the-Job Training (OJT), and field experience at other existing wind power plants, are provided for employees to enhance their skills. These include safety training, technical training, and training in the operation, inspection and replacement of Supervisory Control and Data Acquisition (SCADA) systems. Also, acquiring skills in new technologies and safety procedures will continuously be provided.

〇 Prioritizing Local Companies in Procurement (Goal 9: Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation, among others)
Utilizing local companies is prioritized for procurement related to construction, transportation, maintenance, facility management and others. This contributes to strengthening the local industry and supply chain.

〇 Transfer of Expertise and Knowledge to Local Partners (Goal 17: Strengthen the means of implementation and revitalize the Global Partnership for Sustainable Development, among others)
Specialized technical skills and knowledge are planned to be transferred to Hai Anh T&T, through Hai Anh SPC, by management system and workshops on best practices. These activities contribute to strengthening its capabilities, enhancing its technical skills, and improving its ability to effectively manage and operate renewable energy projects.

〇 Support for local schools, agriculture, and communities (Goal 4: Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all, Goal 9: Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation, Goal 11: Make cities and human settlements inclusive, safe, resilient and sustainable, among others)
Additionally, Hai Anh SPC provided computers to a local school, constructed an agricultural road, and donated to local cultural and community facilities.

    

▲ Provision of computers to a local school

 

[Activities related to Business and Human Rights (including Human Rights in Supply Chain)]
Hai Anh SPC implements the following activities:

〇 Continuous Engagement with Suppliers
The suppliers are continuously encouraged to improve their business process through regular audits, workshops, and ongoing dialogue. Also, worker’s complaints handling system has been introduced.

〇 Regular Meetings with Local Residents
Hai Anh SPC developed a plan to hold regular meetings with local residents and to address their concerns.

 

【Insights gained through the Project and future outlook】
Hai Anh SPC gained the following insights through this project and intends to apply them to future activities:

〇 Motivation, Adaptability and Growth Potential of Local Workers and Enterprises
Local workers are motivated and quick to understand. By investing in their skills, Hai Anh SPC aims to build sustainable industries in Viet Nam. Local enterprises also demonstrate high adaptability and growth potential. For example, one agricultural worker obtained certification as a qualified wind turbine technician through training. Also, one local company is successfully addressing Viet Nam’s unique requirement to comply with both international and domestic electrical standards.

〇 Business Success and Social Environmental Impact
The success of a business requires not only the operation of power generation projects but also consideration of its social and environmental impacts. Hai Anh SPC believes that integrating SDGs and human rights activities into business operations is essential for both business success and community engagement.

〇 Adapting to Changing Regulations and Dialogue with Government Agencies
Through this project, Hai Anh SPC learned that adapting to evolving regulations was essential and that the government agencies were open to dialogue and provided numerous opportunities to it. Currently, the constraint of the grid connection capacity remains one of key challenges moving forward.