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Power Purchasing Contract signing for Vung Ang TPP No1

Power Purchasing Contract signing for Vung Ang TPP No1 - 

On August 17, 2016 in Hanoi, PetroVietnam (PVN), Electricity of Vietnam (EVN), PV Power and EVN Electricity Power Trading Company held a  ceremony to sign the Power Purchase Contract  (PPC) for Vung Ang Thermal Power Plant No1.

The Signing Ceremony of the Power Purchase Contract (PPC) between EVN and PVN for Vung Ang Thermal Power Plant No1.

Vung Ang TPP No1 is sited in Ky Loi commune, Ky Anh distric, Ha Tinh province, invested by PVN. The plant includes 02 units with the supercritical boilers (2x600 MW). The first unit put into commercial operation on January 01, 2015 and the second – on May 12, 2015 by connection with 220 kV bar of Vung Ang 500/220 kV transformer substation.

The Vung Ang TPP No1 was started to construction in 2009, and the negotiation on price and PPC was deployed justly since that. However, due to specific difficulties during the project construction and handing over commercial operation of the plant from PVN to PV Power (01/01/2016), the PPC must be separated to 02 stages with the different subjects.

In the first stage, from the date when the first unit on commercial operation to 31/12/2015, the PPC signed between PVN and EVN Electricity Power Trading company with temporary electricity price. In the second stage, from 01/01/2016, the PPC signed between PV Power and EVN Electricity Power Trading company with an official electricity price based on guideline of Ministry of Industry and Trade and approved by the Electricity Regulatory Authority.

After more than one year of negotiation and resolving a lot of difficulties, the sides have agreed the official price and come to signing PPC for Vung Ang TPP No1.

Speaking at the ceremony, Mr. Nguyen Sinh Khang , PVN Deputy General Director affirmed: “ PPC for Vung Ang TPP No1 was constructively and promptly implemented by PVN and EVN. During negotiation process the sides had overcome a lot of difficulties, especially the issues to set a time-limit for handing over the project from PVN to PV Power and supplement a number of provisions relating investment (by PVN) and operation (by EVN) of Vung Ang No1 500kV power distribution substation. These issues affected a lot the electricity price of the project. The signing PPC for Vung Ang TPP No1 has officially marked participation of a largest TPP in Vietnam up today in the domestic power market ”.

VietnamEnergy.vn

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