UK-based Coro Energy PLC has signed an 11.2 U.S. cents per kWh power purchase agreement (PPA) with Vietnam’s Mobile World Group for a 50 MW rooftop solar power system.
Such minimum price is above the country's preferential feed-in-tariffs (FiTs) of 9.35 U.S. cents for solar power projects.
In a recent announcement, the UK-headquartered energy company that focuses on Southeast Asia said the PPA follows up on a memorandum of understanding (MoU) signed by the two sides in October 2023.
Per the MoU, Coro Energy and Mobile World Group, listed on the Ho Chi Minh Stock Exchange (HoSE) as MWG, will install rooftop solar systems across an initial portfolio of 900 MWG sites with a total capacity of 50 MW.
The 14-year PPA covers 10 MWG sites with a capacity of 430 kW.
Work on the sites is set to begin from March 2024 and conclude in about one month.
The capital required for the pilot phase is expected to be sourced from existing in-country Coro Energy resources and from a debt facility expected to be provided by HDBank.
On successful commissioning of 10 pilot sites, the sides will review progress and initiate the full-scale rollout targeting all 900 MWG locations.
MWG posted a net profit of VND168 billion ($6.9 million) in 2023, down 96% year-on-year, marking the lowest figure since 2013. It recorded VND118,280 billion ($4.85 billion) in net revenue, down 11.3% year-on-year.
It targets a 5% year-on-year increase in revenue to VND125 trillion ($5.13 billion) and a 14-fold rise in net proft to VND2.4 trillion ($98.48 million) this year.