Nội Dung Chính
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Could you point out for me truc tiep bong da chaolong good point of this solar PPA?
While truc tiep bong da chaolong previous draft solar PPA does not require truc tiep bong da chaolong Feed-in-Tariff (FiT) conversion between USD and VND be according to truc tiep bong da chaolong exchange rate at truc tiep bong da chaolong time of payment, this newly issued solar PPA repeats truc tiep bong da chaolong language in Decision No. 11/2017/QD-TTg (Decision 11) that truc tiep bong da chaolong FiT will be adjusted according to truc tiep bong da chaolong fluctuation in truc tiep bong da chaolong VND/USD exchange rate. This is consistent with what is stipulated in Decision 11.
In addition, I note that while truc tiep bong da chaolong FiT for power output from on-grid projects is adjusted according to truc tiep bong da chaolong fluctuation in truc tiep bong da chaolong VND/USD exchange rate, meaning at any time during truc tiep bong da chaolong year, it is not truc tiep bong da chaolong same for rooftop projects. Instead, truc tiep bong da chaolong mentioned FiT for excessive power output generated from rooftop projects remains truc tiep bong da chaolong same throughout truc tiep bong da chaolong first year of operation, and truc tiep bong da chaolong new FiT for truc tiep bong da chaolong next year will be adjusted based on truc tiep bong da chaolong announced VND/ USD exchange rate of truc tiep bong da chaolong last working day of truc tiep bong da chaolong previous year.
2. Are there any concerns of investors that truc tiep bong da chaolong solar PPA has not solved?
truc tiep bong da chaolong rights of truc tiep bong da chaolong investors are not fully protected in truc tiep bong da chaolong following cases:
– when EVN is in truc tiep bong da chaolong process of installing equipment, or making repairs, replacement, inspection or examination of truc tiep bong da chaolong grid connection of truc tiep bong da chaolong seller’s power plant;
– when truc tiep bong da chaolong transmission grid or truc tiep bong da chaolong distribution grid connected to EVN’s grid has a problem or grid equipment directly connected to EVN’s transmission grid or truc tiep bong da chaolong distribution grid has a problem; and
– when EVN’s grid needs support to recover after truc tiep bong da chaolong incident in accordance with truc tiep bong da chaolong provisions of operation of truc tiep bong da chaolong national power system and truc tiep bong da chaolong standards, technical regulations of truc tiep bong da chaolong electric industry.
– allocation of feeding points into truc tiep bong da chaolong grid
It is quite risky for truc tiep bong da chaolong producer if truc tiep bong da chaolong output is ready to be fed to truc tiep bong da chaolong grid but truc tiep bong da chaolong connection is not available to do so. Absent a clear indication of whether truc tiep bong da chaolong Solar PPA is a ‘take or pay” agreement, investors will find it difficult to secure and ensure truc tiep bong da chaolong profits and revenue of their projects.
- No international arbitration dispute resolution clause
- No Government guarantee to enhance truc tiep bong da chaolong credit of EVN as truc tiep bong da chaolong sole off-taker;
- No provision addressing truc tiep bong da chaolong risks of changes in applicable laws; and
- truc tiep bong da chaolong Solar PPA is required to follow a specific template, which is not bankable.
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Is this PPA solar bankable or not?
This PPA is not bankable due to reasons specified in 2).
- In your opinion, how Vietnam government should do in order to reach their target for solar power capacity in truc tiep bong da chaolong coming to time?
There is an increasing interest of foreign investors in truc tiep bong da chaolong sector, proven by truc tiep bong da chaolong fact that there are many solar projects with total capacity of 10,000 MW registered with truc tiep bong da chaolong MOIT. However, not many of them have submitted truc tiep bong da chaolong pre-feasibility study to truc tiep bong da chaolong MOIT for consideration. There are many reasons behind this, but truc tiep bong da chaolong most important ones are truc tiep bong da chaolong lack of Government guarantee of EVN’s payment obligation in truc tiep bong da chaolong PPA and currency hedging. Thus, truc tiep bong da chaolong Government should consider a mechanism where EVN has to fulfil its payment obligation and truc tiep bong da chaolong investors are ensured that they will be able to remit their profits abroad in foreign currency.
