To mention that evn is not the off taker in this

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to mention that EVN is not the off-taker in this project, but that a subsidiary of ASM is purchasing the power. The existing PV capacity is mostly related to embedded generation and off-grid projects. Around Danang a couple of projects can be found. Its airport, for example, is partially powered by solar energy. Outside the Sao Mai project, two commercial rooftop plants 4
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White Paper Vietnam serve as clear examples of the country’s potential for PV. In Hanoi, the UNDP HQ can draw energy from its 119kWp rooftop plant. In Ho Chi Minh City, Intel Corporation has adorned its building with a total capacity of 220kWp of solar panels. Another clear sign of the market’s blossoming is the 19.2MW project under construction by Vietnamese Thien Tan Investment and Construction JSC (TTC). With partners and investors coming from Thailand and India, the total investment brings in around 40 mn USD into the province of Quang Ngai, while the plant itself already increases the country’s solar capacity fivefold. The eagerness of the PV industry to make things happen in Vietnam culminated in a global media barrage surrounding the first draft of the solar PPA. In it EVN serves as the sole off-taker of the electricity, and it stipulated the rules of engagement for utility scale solar developments. Firstly, this analysis will dive into the specifics, then it will point out what aspects remain unclear until the final circular comes out, closed of by a summary of the main concerns regarding the current PPA framework. The draft PPA is in line with the agreements that deal with other renewable sources, like wind. It covers a 20 year running period and offers a tariff of VND 2,086/kWh (time of writing US 9.18 cents/kWh). In the words of TTC CEO these conditions pave the way for an IRR of around 15%, when taking into account a total cost of $880,000 per MW. The draft was presented by the government as a template with only minor room for negotiations and is applicable until June 30, 2019. Together with the solar-supporting Decision No. 11 it enhances the opportunity for PV in a number of ways: Besides the tariffs, it allows for adjustment according to exchange fluctuations; Capital may be mobilized from domestic and foreign origins (organizations or individuals); For imported products that can’t be sourced within Vietnam an exemption is available on import duties. When the draft PPA was released it showed the potential for PV development and the potential business case in the utility scale sphere. Now the market awaits the final circular that could lift the uncertainty on some of the remaining unknown aspects. These listed uncertainties leave out the entire net-metering policy, since that is only provisionally allowed and remains unformulated for the time being.
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