Thailand’s B.Grimm Power has entered into a power purchase agreement (PPA) with Electricity of Vietnam (EVN) for solar projects totaling 257 MW in the country. The project is located in Phu Yen Province of Vietnam.
The PPA is for a feed-in tariff (FiT) of $0.0935 (~₹6.938)/kWh. The duration of the PPA will be 20 years. The scheduled commercial operation date of the project is expected to be before June 30, 2019.
B.Grimm Power had recently acquired an 80 percent stake in Vietnamese firm Phu Yen TTP Joint Stock Company. Phu Yen TTP Joint Stock Company is involved in developing the 257 MW solar PV project.
This is the second PPA signing that B.Grimm Power has been involved in recently. In September 2018, the firm had entered PPA with EVN for 420 MW of solar PV capacity.
In July 2018, B.Grimm Power and Vietnam’s Xuan Cau had signed a development cooperation agreement for the 420 MW solar PV project located in Tay Ninh, south-west of Vietnam. The project is expected to commence operations in June 2019.
Vietnam has become an important destination for investment in renewable energy for companies seeking new markets.
Recently, JA Solar Vietnam, a wholly-owned subsidiary of Chinese solar manufacturer JA Solar, completed a long-term buyer credit loan agreement of $68.4 million from China Minsheng Bank Corporation Limited. The long-term credit agreement will be used to finance the procurement of equipment for JA Solar Vietnam’s 1.5 GW solar wafer manufacturing facility.
Mercom recently reported that Siemens, a Germany-based supplier of transmission, distribution and smart grid solutions, announced it will supply equipment for Vietnam’s largest solar park in operation. The solar project is located in the southern province of Ninh Tuan and expected to be complete by mid-2019.