16:30 (GMT +7) - Tuesday 25/09/2018

Business

TTC's energy unit signs EPC contract with consortium

Released at: 09:56, 26/02/2018

TTC's energy unit signs EPC contract with consortium

Photo: TTC

Two parties sign EPC contract for solar power plant in Thua Thien Hue province.

by Hong Nhung

The Gia Lai Electricity JSC (GEC), a subsidiary of the TTC Group, signed an engineering procurement and construction (EPC) contract on February 23 with the Sharp - SSSA - NSN consortium in Ho Chi Minh City to implement the Phong Dien Solar Power Plant in central Thua Thien Hue province.

Sharp - SSSA - NSN is a consortium of three contractors: the Sharp Group (Japan), Sharp Solutions Asia (SSSA, Thailand), and the NSN Construction and Engineering JSC. Sharp, which was established in 1912, leads the consortium.

After the EPC contract comes into effect, the consortium will officially become the contractors at Phong Dien, which has a capacity of approximately 35 MW and an estimated power output of 61,570 MWh per year, equal to the annual power consumption of 32,628 households in Vietnam.

Once completed, the plant will significantly contribute to promoting local socioeconomic development and will add more renewable energy sources to the national grid. It will help reduce an estimated 20,503 tons of CO2 emissions per year, contributing to environmental protection and global efforts to limit global warming.

The utilization of green - clean energy sources has been a major innovation in the energy industry that brings optimal solutions to saving power and has a positive effect on the environment. Solar power is becoming a sustainable development trend and contributing to preserving limited energy resources around the world.

TTC’s energy segment, in which the main unit is GEC, has continually boosted its investment in clean energy resources and implemented pilot wind and solar power models in potential areas and also invested in hydro power projects.

It plans to reach a capacity of 1,000 MW of solar power and 40 MW of wind power by 2020, accounting for 73 per cent of its total power capacity, and 222 MW of hydro power and 150 MW of thermal power, or 16 and 11 per cent, respectively, of its total power capacity.

TTC previously planned to deploy 20 solar power projects in several provinces, including Tay Ninh (324 MW), Binh Thuan (300 MW), Ninh Thuan (300 MW), and Gia Lai (49 MW), with a maximum investment of up to $898 per MW, an interest rate of return (IRR) of at least 15 per cent, and a payback period of less than 12 years.

Signing the EPC contract represents a milestone for TTC’s energy segment and will leverage each other’s strengths for effective cooperation and development and increase benefits for the community amid climate change.

It also provides the foundation for TTC’s energy segment to complete its clean energy development roadmap and expand the scale of operations in line with international standards. This will assist Vietnam’s energy industry in preparing to seize new development opportunities and cope with future challenges.

User comment (0)

Send comment