7,774 billion VND solar power project applies direct electricity purchase and sale mechanism

Anh Tuấn |

The Dau Tieng 5 solar power plant project is one of the first power projects implemented under the direct electricity purchase and sale (DPPA) mechanism.

The Dau Tieng 5 solar power plant project was officially started with a total installed capacity of 450 MW and a total investment of 7,774 billion VND. When completed, the project is expected to supplement a large-scale clean electricity source for the national power system, while contributing to promoting the energy transition and socio-economic development of the locality.

The plant is planned on an area of about 645 hectares in the semi-submerged land area of Dau Tieng Lake. The project is invested by DT5. 1 Energy Joint Stock Company of Xuan Cau Holdings, belonging to the group of industrial and energy works level I, group A, with a total installed capacity of about 450 MW.

After going into operation, the plant is expected to supply about 808 GWh of clean electricity per year to the national power system and commercial operation in December 2027.

According to the design, the project is invested synchronously with a high-performance photovoltaic battery system, a scattered inverter system, a power storage battery system (BESS), and connection infrastructure including a 220 kV substation and transmission lines.

The application of modern technology solutions is expected to improve operational efficiency, optimize electricity output and ensure safe connection with the national power system.

Mr. To Dung - Chairman of the Board of Directors of Xuan Cau Holdings said that this is one of the first projects to apply the direct electricity purchase and sale (DPPA) mechanism, contributing to realizing the mechanism that has been researched and built over many years.

According to Mr. To Dung, the DPPA mechanism not only creates a healthy development momentum for power generation units and large electricity users, but also contributes to promoting the formation of a competitive electricity market.

This enterprise is committed to implementing the project on schedule, ensuring quality, efficiency and safety, and at the same time affirming its competitiveness when signing DPPA contracts with FDI investors.

Representative of the construction general contractor consortium, Mr. Zhou Jiayi - Chairman of PowerChina's Asia-Pacific regional headquarters, committed to putting the quality of the project and implementation progress as key objectives in the project management process, while strictly complying with safety, health and environmental (HSE) requirements.

According to Mr. Zhou Jiayi, Dau Tieng Lake is an area with a high value ecosystem and water surface environment. Therefore, the general contractor consortium will fully comply with the provisions of Vietnamese law as well as the HSE requirements of the project to minimize the impact of construction activities on the water source, environment and ecosystem of Dau Tieng Lake, ensuring harmony between project development and environmental protection.

The project implementation area is a semi-submerged land area in Dau Tieng Lake, which was previously mainly used for planting cassava. The development of a solar power plant in this area is expected to effectively exploit the land fund and abundant solar radiation sources, while creating more economic development momentum for the locality.

Anh Tuấn
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