The two firms signed a memorandum of understanding for the project on October 15, witnessed by Prime Minister Nguyen Tan Dung and German Vice Chancellor and Minister for Economic Affairs and Energy Sigmar Gabriel during the former’s visit to Berlin.

The project, using German technology, is hoped to support the economic development of the islands and Vietnam in general.

After a successful pilot of this model in Con Dao, Duc Long Gia Lai will expand the use to the whole of the country, a representative of the firm said.

Merica is one of the 10 largest independent providers of electricity and gas in Germany with its annual revenues topping $1.5 billion.