Pv magazine interviewed Apricum Senior Advisor Moritz Sticher to support their featured article on the Vietnamese government’s plan to open their renewable energy markets to bilateral power purchase agreements (PPAs).

The Vietnamese government has been working on a scheme to allow bilateral power purchase agreements (PPAs) since 2020. The start of the pilot scheme has been delayed and is now expected for the first quarter of 2023. The official program should launch in 2025.

“This mechanism now gives investors a fixed tariff and puts the risk of tariff fluctuation on the off taker. The tariff change from wholesale to retail tariff for off-takers means around 2% more share to EVN and hence slightly reduced returns on the investor side (assuming the off-taker will aim for the same total tariff) and slightly less attractive for off-takers due to the change in electricity tariff risk,” Moritz Sticher explained.

Read the full article here, or explore Mortiz’s most-recent article: Solar power in ASEAN: market regulatory and M&A updates and highlights.