{"id":17096,"date":"2017-09-26T18:07:58","date_gmt":"2017-09-26T11:07:58","guid":{"rendered":"http:\/\/indochinapost.vn\/?p=17096"},"modified":"2017-09-26T18:07:58","modified_gmt":"2017-09-26T11:07:58","slug":"vietnam-solar-power-first-official-ppa-vietnam-investment","status":"publish","type":"post","link":"https:\/\/indochinapost.vn\/vietnam-solar-power-first-official-ppa-vietnam-investment.html\/","title":{"rendered":"VIETNAM SOLAR POWER \u2013 THE FIRST OFFICIAL PPA \u2013 VIETNAM INVESTMENT"},"content":{"rendered":"
While truc tiep bong da previous draft solar PPA does not require truc tiep bong da Feed-in-Tariff (FiT) conversion between USD and VND be according to truc tiep bong da exchange rate at truc tiep bong da time of payment, this newly issued solar PPA repeats truc tiep bong da language in Decision No. 11\/2017\/QD-TTg (Decision 11<\/em><\/strong>) that truc tiep bong da FiT will be adjusted according to truc tiep bong da fluctuation in truc tiep bong da VND\/USD exchange rate. This is consistent with what is stipulated in Decision 11.<\/p>\n In addition, I note that while truc tiep bong da FiT for power output from on-grid projects is adjusted according to truc tiep bong da fluctuation in truc tiep bong da VND\/USD exchange rate, meaning at any time during truc tiep bong da year, it is not truc tiep bong da same for rooftop projects. Instead, truc tiep bong da mentioned FiT for excessive power output generated from rooftop projects remains truc tiep bong da same throughout truc tiep bong da first year of operation, and truc tiep bong da new FiT for truc tiep bong da next year will be adjusted based on truc tiep bong da announced VND\/ USD exchange rate of truc tiep bong da last working day of truc tiep bong da previous year.<\/p>\n truc tiep bong da rights of truc tiep bong da investors are not fully protected in truc tiep bong da following cases:<\/p>\n \u2013 when EVN is in truc tiep bong da process of installing equipment, or making repairs, replacement, inspection or examination of truc tiep bong da grid connection of truc tiep bong da seller\u2019s power plant;<\/p>\n \u2013 when truc tiep bong da transmission grid or truc tiep bong da distribution grid connected to EVN\u2019s grid has a problem or grid equipment directly connected to EVN\u2019s transmission grid or truc tiep bong da distribution grid has a problem; and<\/p>\n \u2013 when EVN\u2019s grid needs support to recover after truc tiep bong da incident in accordance with truc tiep bong da provisions of operation of truc tiep bong da national power system and truc tiep bong da standards, technical regulations of truc tiep bong da electric industry.<\/p>\n \u2013 allocation of feeding points into truc tiep bong da grid<\/p>\n It is quite risky for truc tiep bong da producer if truc tiep bong da output is ready to be fed to truc tiep bong da grid but truc tiep bong da connection is not available to do so. Absent a clear indication of whether truc tiep bong da Solar PPA is a \u2018take or pay\u201d agreement, investors will find it difficult to secure and ensure truc tiep bong da profits and revenue of their projects.<\/p>\n This PPA is not bankable due to reasons specified in 2).<\/p>\n There is an increasing interest of foreign investors in truc tiep bong da sector, proven by truc tiep bong da fact that there are many solar projects with total capacity of 10,000 MW registered with truc tiep bong da MOIT. However, not many of them have submitted truc tiep bong da pre-feasibility study to truc tiep bong da MOIT for consideration. There are many reasons behind this, but truc tiep bong da most important ones are truc tiep bong da lack of Government guarantee of EVN\u2019s payment obligation in truc tiep bong da PPA and currency hedging. Thus, truc tiep bong da Government should consider a mechanism where EVN has to fulfil its payment obligation and truc tiep bong da investors are ensured that they will be able to remit their profits abroad in foreign currency.<\/p>\n\n\n2. Are there any concerns of investors that truc tiep bong da solar PPA has not solved?<\/strong><\/p>\n<\/div>\n
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Is this PPA solar bankable or not?<\/strong><\/h3>\n<\/li>\n<\/ol>\n
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