PPA contract Signing
PPA

PPA ENERGY SOLUTION

As a leading energy service company (ESCO) in Vietnam, we specialize in investing and implementing energy solutions to help businesses operate “greener” and more efficiently.

As one of our ESCO solutions, PPAs (Power Purchasing Agreements) help businesses earn the benefits from renewable energy systems without investment costs and use green energy conveniently and effectively.

PPA

WHAT IS POWER PURCHASING AGREEMENT?

Power purchasing agreement (PPA) is a long-term power purchase contract between two parties: 1. Power supplier (from renewable energy systems such as solar power) and 2. Clients who aim to optimize energy costs and use clean electricity.

Through the PPA contract, the project developer will perform all the work of capital investment, financial arrangement, survey, design, equipment supply, installation, operation and maintenance for the renewable energy system, providing electricity for business based on customer’s need.

Every month, the beneficiary only needs to pay the electricity bill from the system at a discounted price lower than that of EVN. At the end of the contract, the entire system is transferred to the beneficiary for a symbolic price of 1 USD. Businesses that consume a lot of electricity & businesses for production are the customers that benefit the most from this model.

PPA Eng
PPA

BENEFITS FOR CLIENTS

ESCO model in the field of solar power is one of the most effective investment solutions economically and widely applied by businesses. Enterprises absolutely do not need to invest capital but still receive great benefits in terms of finance, architecture, and sustainable development.

  • Financial benefits: Businesses do not need to spend money to invest in solar power but still own a rooftop solar power system, saving electricity every month, and minimizing living and operating costs.
  • Operational benefits: the roof of the workshop with solar panels will reduce the temperature below, helping the warehouse to be cooler, and increasing the durability of the roof. 
  • Reaching international commitments: contributing to reducing greenhouse gas emissions, protecting a greener and cleaner environment, building a brand for sustainable development
  • Many other benefits such as long shelf life, guaranteed operation, and care-free maintenance of the solar power system.

With PPA contract, a solar power system with a capacity of 1MWP, installation area of 7000m2, can generate 1400MWh/year, saving the factory on average VND750,000,000 and reducing emissions equivalent to 1200 tons of CO2 annually.

PPA

I-REC CERTIFICATE

 I-REC certification is one of the standards being widely applied to encourage investment, use renewable energy and support the effective green transition. By obtaining an I-REC certificate, businesses can ensure that energy comes from renewable sources, contributing to reducing pollution, and protecting the environment.

PPA contracts are solutions that help customers earn I-RECs quickly and most effectively.

Chứng chỉ i-rec
Dự án Điện mặt trời Trại nấm An Giang 1
Dự án Điện mặt trời trại nấm An Giang 5
Dự án Điện mặt trời All Well 2
PPA

CRITERIA AND DOCUMENTS

CRITERIA FOR PARTICIPATING IN PPA CONTRACTS

ppa contract,esco vietnam,solar investment fund,i rec,energy PPA number one

Beneficiary

Business

ppa contract,esco vietnam,solar investment fund,i rec,energy PPA number 2

Area

> 5000 m2

ppa contract,esco vietnam,solar investment fund,i rec,energy PPA number 3

Capacity

> 500 KWp

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Consumption

> 200 MWh/month

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Duration

20 years

ppa contract,esco vietnam,solar investment fund,i rec,energy PPA

Region

Nationwide

PPA

 IMPLEMENTATION PROCESS

The process of cooperation in implementing PPA contracts is quite simple, it does not take too much time to approve and appraise the project.

  • Step 1: Negotiate the options 
  • Step 2: Survey and design
  • Step 3: Sign the PPA contract and conduct legal procedures
  • Step 4: Install the system
  • Step 5: Operate and hand over

Through the PPA model, the customer businesses can easily access energy-saving solutions in a convenient and effective way. 365 Energy will ensure the implementation and construction of the system on schedule, ensuring safety and quality.

ppa contract,esco vietnam,solar investment fund,i rec,energy PPA PPA Eng 2
PPA

FACTORY CONSUMPTION ANALYSIS

Depending on the business model and industry, load discharge chart of each customer will be different and the expected solar power output will determine the PPA model & proposed electricity price for each customer.

Sơ đồ tiêu thụ của nhà máy sản xuất điển hình

The typical operation of a manufacturing plant will consume about 80-90% of solar power due to the need for a rest period for workers.

ppa contract,esco vietnam,solar investment fund,i rec,energy PPA So do tieu thu cua kho lanh hoat dong 24 7

Cold stores will have to operate 24/7 to always ensure freezing of products, so their operation will consume about 95 – 100% of solar power.

PPA

DISCOUNTED ELECTRICITY OPTIONS

365 Energy’s PPA options focus on customer benefits and can flexibly respond to the actual conditions and requirements of each unit.

ppa contract,esco vietnam,solar investment fund,i rec,energy PPA Phuong an gia co dinh

Option 1: Fixed price electricity price

  • Clients agreed on a fixed electricity price, gurantee no price increase over contract period.
  • This plan provide financial security for the client when EVN increases electricity prices in the future.
ppa contract,esco vietnam,solar investment fund,i rec,energy PPA Phuong an giam gia theo EVN

Option 2: Discounted electricity price based on EVN price

  • Discounted price at 15-25% comparing to EVN throughout 20 years for customers who use manufacturing electricity.
  • Discounted price at 30-45% comparing to EVN throughout 20 years for customers who use business electricity.

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