First solar power purchase contract signed
First solar power purchase contract signed
Electric Power Trading Company (EPTC), an arm of Electricity of Viet Nam, and India’s Shapoorji Pallonji Infrastructure Capital Co Ltd on Monday signed a power purchase agreement for the solar power project SP Infra 1 Plant in Ninh Thuan Province.
This is the first power purchase contract signed for a solar project in the country.
The contract is based on the Prime Minister’s April 2017 Decision on mechanisms to encourage the development of solar power projects in Viet Nam and the Ministry of Industry and Trade’s circular on regulations of the development and purchase contract for solar power projects.
According to the existing regulations, solar power projects are entitled to the price of VND2,086 (9.35 US cents) per kWh, subject to the exchange rate fluctuation. The buyer is responsible for purchasing all the electricity generated from the grid-connected projects which operate commercially before June 30, 2019 under the 20-year purchase agreement.
The 50MW SP Infra 1 Plant, invested by Shapoorji Pallonji Infrastructure Capital, has total investment capital of over VND1.63 trillion ($71 million). It is expected to generate about 83 million kWh per year once it comes into operation.
At the signing ceremony, representative of Shapoorji Pallonji Infrastructure Capital said the company was taking necessary steps for the investment, expecting to put the project into commercial operation on May 30, 2019.
Nguyen Danh Son, EPTC’s director, congratulated the first solar power purchase contract and hoped the Indian company would closely collaborate with EPTC to solve technical problems arising in the operation process to ensure success.
There are 27 renewable energy projects registered in Ninh Thuan with total capacity of 2,680MW, of which 15 are solar power projects with combined capacity of 1,848MW and 12 wind power projects with total capacity of 1,012MW.
