Photovoltaic and wind power generation support services in Vietnam.
The construction of a renewable energy power plant in Vietnam requires negotiations, meetings, applications for permits and approvals, and the acquisition of permits and approvals from the government, provinces, People’s Committee, Ministry of Industry and Trade, EVN (Electricity of Vietnam), and other government agencies in all stages from land selection and acquisition to COD (start of commercial operation).
KKYE has a track record of doing all of that from 2017-2019.
We will continue to be involved in renewable energy in response to various legal changes.
Support contents
The land acquisition is basically a 50-year lease contract.
The process begins with the selection of land, followed by negotiations with the government and the People’s Committee, and then the contract is signed.
In the case of acquisition from non-governmental organizations, there are also methods such as acquisition through mergers and acquisitions.
Change of use of the land is also required.
In order to build a large-scale solar or wind power plant, the land must be included in the government’s plan for a zone where solar or wind power generation is possible.
We can assist you with everything from land acquisition to application for and acquisition of permits and licenses.
Feasibility study (FS) is an investigation into the feasibility of a project.
In addition to financial aspects such as industry trends, return on investment, profitability, and financing, we also investigate and study external factors such as politics, legislation, regulations, economy, technological trends, natural environment, and social environment.
Research on the environmental impact is particularly important.
Since the project will proceed according to the FS, the preparation of the FS is very important, and KKYE will support the preparation of the FS, including experts.
As for project finance, we can also arrange loans from Vietnamese banks.
It is possible to borrow up to 70% of the total investment amount, but the interest rate is higher than in Japan, at around 2% spread over the short-term funding rate.
The bank intermediary service includes negotiations with the bank, support in preparing the necessary documents, and support up to the execution of the loan.
We support PPA (Power Purchase Agreement) with EVN.
EVN EPTC is the contact point for PPA contracts with EVN.
We will support you through negotiations and contracts.
We support connection contracts with EVNs.
There are three types of connection contracts with EVN: northern, central, and southern.
For example, if you are in the central region of Vietnam, you will be connected to EVN CPC.
We will support you to negotiate and sign the connection contract.
We provide support for interconnection and COD (start of commercial operation).
Depending on the region, there are A1, A2, and A3 points of contact for interconnection, but we can handle all of them.
We provide support for negotiations, documentation, and COD.
The above is an excerpt of what is required for the construction of a power plant.
In addition to the above, we can assist you in applying for and obtaining all permits and licenses related to renewable energy, as well as other necessary tasks.
We can also provide necessary support until the completion of the project, including introduction of subcontractors and other vendors, and consultation on material procurement.
Example of support for power plant construction
After visiting several potential project sites, we provided support for a 50-year lease of 64 hectares of land.
As a result of negotiations with government agencies, the land lease fee for 50 years was waived.
After the contract was signed, the Red Book was also issued.
We supported the PPA contract (Power Purchase Agreement) with EVN.
(Power generation scale: 50MW, 0.0935USD / W, 20-year PPA contract)
The plant is currently in commercial operation.
The only Japanese company with 100% foreign investment that KKYE has supported has signed the contract.
KKYE supported a loan agreement of 35 million USD (about 3.5 billion yen) from a bank as project finance.
KKYE assisted in bank mediation, negotiation and documentation, and the loan was executed.
Flow of contracts
We are flexible about the content of the contract. (Inspection only is also possible.)
Click here to see an example of an actual inspection.
