Risen Energy accelerates overseas expansion with signing of contract for first PPA project in Vietnam
NINGBO, China, Sept. 26, 2018 /PRNewswire/ -- China-based PV module manufacturer Risen Energy recently announced that the company has signed a contract for a 61 MW power purchase agreement (PPA) project in Ninh Thuan with Tasco, a Vietnam-based company. The project is Risen Energy's first PV power station in Vietnam as well as one of the first PPA projects in the country. The project will play a benchmarking role in the Chinese company's future expansion into Vietnam. Construction of the facility is expected to start in mid- or late September, with local government leaders from Ninh Thuan and top management executives from Risen Energy, including its president Wang Hong, scheduled to attend the groundbreaking ceremony.
With Vietnam's economic reform in full swing, the country has experienced an average growth rate of 17% in energy demand over the last few years. The country now relies heavily on hydro and thermal power to generate electricity. Yet, solar energy reserves abound, with an average daily solar radiation of 5 kWh per square meter, making Vietnam a PV power market with huge potential. In addition, the government is also aggressively driving development of the PV market. According to the national electricity master plan put in place by the government in 2016, PV installation capacity is expected to reach 850 MW by 2020, 4,000 MW by 2025 and 12,000 MW by 2030.
Risen Energy plans to take full advantage of the development opportunities in the country's emerging PV market, accelerating its expansion plans there. The company has already established a Vietnam-based subsidiary, aggressively investing in the establishment of power stations across the country, where there are apparent geophysical advantages, and offering local companies an opportunity to participate in the engineering, procurement, and construction (EPC) component of its projects.
Risen Energy explained that the Ninh Thuan facility will be outfitted with 330 W high-efficiency polycrystalline modules as they are more suited to local environmental conditions and construction needs, laying an important technological foundation for the project's successful construction and operation. The project is on schedule to be connected to the grid in 2019.
Risen Energy said, "This is Risen Energy's first project in Vietnam as well as one of the first PPA projects in the country. Risen Energy's participation in the project will allow the market to fully understand our core advantages, including technologies and experience in EPC. Vietnam is an important emerging market for the company. Through participation in the construction, we will gain precious experience in how to plan and execute a project in Vietnam, creating a development model that can be used as a reference for future endeavors. The highly efficient operations and management model deployed by the company's team and the superior quality of the power station will improve the level of confidence that local companies have in the Risen Energy brand and the quality that it stands for, increasing possibilities for further collaboration between them and ourselves."