BGRIM clinches Vietnam solar power supply deal with EVN
12 October 2018
B Grimm Power (BGRIM) has clinched an agreement to supply electricity from its solar photovoltaic (PV) farm in Phu Yen Province, Vietnam, to Electricity of Vietnam (EVN), the largest power company in the country.
The conclusion of the 20-year agreement yesterday in Hanoi, in the presence of BGRIM Chairman Harald Link, has solidified the viability of the 257 MW PV scheme in the country’s south central coast.
“The [agreement] has secured the future for the Phu Yen project which will help drive our income generation and capacity equity growth,” said BGRIM President Preeyanart Soontornwata.
When it starts commercial operation in June next year, Phu Yen will enhance BGRIM’s 2019 revenue by 15-20 per cent and contribute to the company’s target to increase it installed capacity to 3,100 MW in 2022.
The sales of electricity to EVN is at US$9.35 /KWh (Bt507) for 20 years with the commercial operation date (COD) set on June 30, 2019.
The ground-mounted PV solar farm in Phu Yen is one of the larger systems of its kind in Vietnam and its output will be fed to EVN’s national grid.
SET-listed BGRIM, through subsidiary B Grimm Renewable Power 2 Co, earlier this year acquired an 80 per cent stake in Phu Yen TTP Joint Stock Company.
BGRIM is actively pursuing power ventures in Vietnam with current combined generation equity at 677 MW.
Phu Yen is one of the large scale projects approved by Ministry of Industry and Trade of Vietnam in line with the republic’s policy to promote environmentally-friendly energy over the next two decades.
At present, BGRIM operates a total of 33 power plants, 15 of which are of co-generation, 15 solar, two hydro-power and a diesel-fuelled, with a combined generating capacity of 2,220 MW.