On August 13, the event organizer in the renewable energy sector Neoventure opened a series of online seminars (webinar) with the theme “Development of solar power in Vietnam: Development potentials and legal background”.
As a guest speaker at the webinar, Mr. Borries Plass – COO of Shire Oak International Company (a solar investor and developer from the UK) conveyed the core knowledge to more than 100 attendees, including those interested in and active in the renewable energy sector.
Mr. Borries’ presentation revolved around three main topics, including Assessment of solar power potential in Vietnam – current legal and regulatory basis, Existing rooftop solar business model, and the Technical aspect of each project.
To him, Vietnam is a country with outstanding potential to develop solar power in Southeast Asia. With 98,000ha of the total area of industrial zones, Vietnam can completely overcome the shortage of electricity.
According to Shire Oak, the South is the region with the best conditions to exploit rooftop solar power because it is home to most of the industrial parks of the country, and has ideal hours of sunshine.
Firms using solar power projects get benefits in many ways. One of the projects that Shire Oak developed, the BOHO Décor plant, received the international certification for green design LEED. In addition, Mr. Borries clarified the significant amount of money that businesses save through the preliminary spreadsheet in the Shire Oak partnership model.
“With a 15 to 20-year contract, businesses will save up to $ 900,000 when installing a system with a capacity of 1 MW” – Mr. Borries said.
In addition, the rooftop solar PV system deployed by experienced developers such as Shire Oak always ensures high efficiency and meets safety requirements. The company also takes full responsibility for operation and maintenance (O&M) so the company can rely on the quality of the system.
Up to now, Shire Oak Company has 8 projects in operation. Enterprises that want to participate in a partnership model with renewable energy developers like Shire Oak often have two options for cooperation: First, if the business does not have a high demand for electricity for activities such as production, they can sign a roof rental contract. At that time, the developer will pay the annual roof rental fee for the business.
However, to fully enjoy the economic efficiency that the solar power system brings, businesses can refer to the Power Purchase Agreement option. At that time, Shire Oak will fully invest in a solar power project on the roof of the factory, and the company will use the electricity generated from the system at a much cheaper price than EVN’s grid electricity price.
Ideally so, but through his sharing, listeners will learn more about the facility requirements and complex procedures for implementing a rooftop solar power project.
In addition, according to Decision No. 13 / QD-TTg, the time to apply the FIT2 mechanism is more preferential from July 1, 2019 to December 31, 2020 for projects “connected solar power. The net has been approved by the competent authority for the investment policy before November 23, 2019”. Thus, developers have only more than 4 months to deploy investment procedures and build solar power projects.
At the end of the seminar, Neoventure and Mr. Borries answered questions raised by the participants. Shire Oak’s COO hopes that through this event, investors, developers, or related businesses will have a deeper insight into the solar power development scene in the S-shaped country.