Pilot direct PPA to fuel local power market

The upcoming APEC Economic Leaders’ Week 2017, taking place between 06 – 11 November 2017 in Da Nang City, Viet Nam might see a general statement on pilot direct power purchase agreements between end-users and renewable power generation units in the country. A US international development agency’s energy expert stated: “We conducted a survey with the Ministry of Industry and Trade (MoIT) and we expect to have a positive movement from the government on the occasion of US President Donald Trump’s visit to Vietnam in November to attend the APEC Economic Leaders’ Week 2017, as part of a regional tour”.

A change in this policy, allowing enterprises and customers to have access to clean energy, will attract additional investment and global brands that will help carry Vietnam up the manufacturing value chain,” John Rockhold, chairman of the Vietnam Business Forum’s Power and Energy Working Group, told VIR in a previous interview.

Le Van Phuong, general director of leading Vietnamese sugar producer Lam Son Sugar Cane JSC (Lasuco), which has invested in a biomass power project fed from its sugar facilities, said, “We are happy to hear this news. Vietnam’s sugar industry is preparing to face strong competition with the decrease of import duties on sugar in the framework of the ASEAN Free Trade Agreement. Vietnamese sugar mills are looking into the application of modern, state-of-the art technology in their production and into creating new revenue streams such as selling electricity.”

Lasuco is one of the country’s 8 sugar mills that has grid-connected, biomass-fuelled projects. Lasuco’s 24-megawatt biomass power project generated 44.5 million killowatt-hours (kWh). Half of this was fed into the grid and sold to Electricity of Vietnam.

“PPAs are incredibly flexible and effective tools for a variety of corporations looking to make their operations more sustainable. They provide price hedges against future price increases and volatility. The environmental benefits associated with a renewable energy project and steady income from PPAs drive the development of new clean energy projects that help change our energy mix” said Dang Quang Vinh, consultant on two biomass power projects in Vi Thanh and Phung Hiep sugar mills.

 

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