Unlock Cost-Effective Solar Power with Vu Phong Energy Group PPA Model

Power Purchase Agreement

What is the PPA (Power Purchase Agreement) Model?

The PPA model, a cornerstone of the Vu Phong Energy Group’s operations, is a contractual framework that facilitates the buying and selling of energy. This long-term agreement, spanning 10 to 25 years, is established between an electricity producer and a consumer. It enables customers to enter into power purchase agreements with third-party developers to procure power generated from various sources such as solar panels and wind turbines for a defined duration. However, in certain jurisdictions, this model encounters legislative and regulatory hurdles that could potentially classify developers as electric utilities.

The PPA (Power Purchase Agreement) solar power model, pioneered by Vu Phong at the end of 2019 and the beginning of 2020 in Vietnam, is a solution allowing enterprises to use clean energy for production activities without initial capital investment. This financially advantageous model ensures security in energy supply and fixed costs associated with energy consumption.

How the PPA Model Works

Under this cooperation model, Vu Phong Energy Group and our partners are investment funds investing in high-quality solar power systems on the enterprise’s roof, selling energy or leasing the system for a time at a reasonable price. Businesses only need to take advantage of the idle factory roof, using clean energy to serve production and business activities. At the end of the agreement, the solar power system will be handed over 100% for the enterprise, with a system performance commitment when the transfer over 80-90%, depending on the conditions.

PPA Model WorksPPAs Model Works

Benefits of the PPAs Model for Businesses

Using renewable energy will help businesses fulfill commitments to greenhouse emission reduction, green production, green growth, and sustainable development. In addition, businesses also enjoy benefits from PV systems such as cooling warehouses and increasing durability of the roof … In the form of self-production and self-consumption of electricity, these PPA solar power systems produce and use their electricity, they do not place a strain on the power transmission – distribution grid system. Meanwhile, they contribute positively to Vietnam’s energy transition and efforts to reduce greenhouse gas emissions, aiming to reach net zero emissions by 2050.

PPA Model Projects from Vu Phong Energy Group

Many domestic and international investment funds and manufacturing businesses in various sectors have shown interest in the PPA solar power model. Under this model, Vu Phong Energy Group and our partners develop many high-quality solar power systems, many of which have received prestigious energy awards. Here are some projects:

8,19 MWp, Golden Victory, Nam Dinh

The 2,9 MWp system contains 5,372 high-efficiency 540W solar panels, 24 high-technology inverters with up to 98.8% efficiency, an auxiliary frame system, and high-quality conductors with a durability of more than 30 years. This system contributes 21% of total energy consumption at Golden Victory Vietnam – an FDI enterprise participating in the global supply chain of the leather and footwear sector.

PPA installation project Golden Victory8,19 MWp, PPA installation project Golden Victory, Nam Dinh

Eclat – Fabrics solar power system

The solar power system employs 2,682 450Wp solar panels installed on the rooftop of the Eclat – Fabrics Vietnam knitting factory. This company is a subsidiary of the Eclat Textile Group, which specializes in manufacturing fashionable knitted, sports, and high-quality clothing fabrics; multipurpose technical textiles with UV protection effects for major brands.

PPA installation project Golden Victory1,2 MWp, PPA– O&M installation project in Eclat, Vung Tau

Mekong Plastic – Ben Tre solar power system

The system uses 1,728 solar panels constructed by Vu Phong Energy Group and installed on the factory roof of Mekong Plastics – one of the biggest manufacturers of reusable plastic bags in Vietnam and has cooperated business with customers in Europe, the USA…

PPA installation project Golden Victory769 kWp, PPA – O&M installation project in Mekong Plastic, Ben Tre

1,45 MWp Lac Long solar power system

Solar power system installed on the roof of Lac Long factory – the world’s largest Pedi-Spas chair factory, specializes in the production and assembly of Pedi-Spas chairs for the Nail Spa Industry. The project has won two categories in The Asian Power Awards 2021: Solar Power Project of the Year and Environmental Upgrade of the Year.

PPA installation project Golden Victory1,45 MWp, PPA – O&M installation project in Lac Long, Long An

2 MWp, Dong Nam Viet solar power system

The system uses 4,554 solar panels installed on the rooftop of a Dong Nam Viet packaging factory. Dong Nam Viet has become one of the typical companies in Binh Duong industrial province, employing renewable energy in manufacturing since installing the solar power system.

PPA installation project Golden Victory2 MWp, PPA installation project in Dong Nam Viet, Binh Duong

1,13MWp NAFOCO solar power system

The 1,13 MWp system, comprised of 2,520 solar panels, is installed on the factory roof of Nam Dinh Forest Products Joint Stock Company (NAFOCO), one of the Northern region’s enterprises pioneering the use of clean energy to green the manufacturing process.

PPA installation project Golden Victory1,13 MWp, PPA installation project in Nafoco, Nam Dinh

3.39 MWp, PPA Vinamilk Mega, Binh Duong

Solar power system with a capacity of 3,39 MWp was installed at Vietnam Dairy Factory – the most modern mega factory in Vietnam and the area, with the most modern integrated and automatic technology in the world. The system was developed by TotalEnergies and Vu Phong Energy Group is the General Contractor (EPC).

PPA installation project Golden Victory3.39 MWp, PPA installation project in Vinamilk Mega, Binh Duong

Advantages of PPA Solar Power Purchase Agreements

The PPA model offers several advantages to businesses looking to adopt renewable energy sources without the upfront costs and maintenance responsibilities associated with owning a solar power system. Here are some key benefits of PPA solar power purchase agreements:

No Upfront Costs

With a PPA, businesses do not need to pay for the initial installation and equipment costs of the solar power system. The developer handles all upfront expenses, allowing companies to enjoy the benefits of clean energy without a significant capital investment.

Predictable Energy Costs

The PPA establishes a fixed rate for the electricity generated by the solar power system over the agreement term, typically ranging from 10 to 25 years. This provides businesses with predictable and stable energy costs, protecting them from the volatility of traditional electricity prices.

Reduced Operational Risks

Under a PPA, the developer is responsible for the design, installation, operation, and maintenance of the solar power system. This transfers the operational risks and legal liabilities associated with owning and managing a solar power system to the developer, allowing businesses to focus on their core operations.

Environmental Sustainability

By adopting solar power through a PPA, businesses can significantly reduce their carbon footprint and contribute to environmental sustainability efforts. This aligns with corporate policies and consumer preferences for eco-friendly practices, enhancing the company’s reputation and brand image.

Potential Tax Benefits

In some jurisdictions, businesses may be eligible for tax credits, incentives, or depreciation benefits for utilizing renewable energy sources like solar power through a PPA. These financial incentives can further improve the economic viability of the agreement.

By leveraging the PPA model, businesses can enjoy the benefits of clean, renewable energy without the upfront costs and operational responsibilities associated with owning a solar power system. This flexible approach allows companies to focus on their core competencies while contributing to a more sustainable future.

Exploring PPA Solar Power Solutions

If you’re interested in exploring PPA solar power solutions for your business, Vu Phong Energy Group offers a wealth of expertise and experience in developing and implementing these agreements. Our team can assess your energy needs, evaluate potential sites, and develop a customized PPA proposal tailored to your specific requirements.

To initiate the process or learn more about our PPA solar power offerings, please feel free to contact our dedicated team. We’ll be happy to provide you with detailed information and guide you through the steps to unlock the benefits of clean, cost-effective, and sustainable energy for your business.

Don’t hesitate to reach out to us today and let’s explore how the PPA model can help your organization achieve its energy and sustainability goals while ensuring a secure and reliable power supply.

Some solar power projects developed under the PPA model that Vu Phong Energy Group is implementing and installing:

  • The solar power system chain has a total capacity of more than 12,5 MWp, installed on the roofs of factories owned by Hwaseung Enterprise in Vietnam.
  • Solar power system on the roof of factory No. 02 of Dong A Plastic Group, in Chau Son Industrial Park, Phu Ly, Ha Nam, with a capacity of 2,07 MWp.
  • Solar power system with a capacity of 2,23 MWp on Kem Nghia’s factory rooftop in Tan Phu Trung Industrial Park, Cu Chi, Ho Chi Minh City.

Businesses interested in the PPA (Power Purchase Agreement) model, and clean energy solutions to greening production, towards sustainable development, please contact Our Call Center via 1800 7171 or +84 9 1800 7171 or send an email to hello@vuphong.com for more information.

Vu Phong Energy Group

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