Coro Energy to take 85% in C&I solar portfolio in Vietnam
Rooftop solar system. Author: Centre for Alternative Technology. License: Creative Commons. Attribution 2.0 Generic
Southeast Asia-focused company Coro Energy Plc today announced plans to acquire 85% in a portfolio of commercial and industrial (C&I) rooftop solar projects in Vietnam with a combined capacity of 150 MW.
The company has signed a binding Heads of Terms with the owner of the portfolio, Vinh Phuc Energy JSC (VPE), to jointly develop it. Coro said it expects the definitive joint venture agreement to be signed by end-August. The exclusivity period under the Heads of Terms ends on October 1.
Under the planned deal, VPE will transfer its 150-MW project portfolio to the future joint venture -- Coro Renewables Vietnam -- in exchange for a 15% carried interest. It will also provide engineering, procurement and construction (EPC) services at market benchmarked levels. Coro will fund the JV for its 85% equity stake.
The projects in the portfolio have long-term "take or pay" power purchase agreements (PPAs) in place with “creditworthy industrial customers” whose names were not disclosed. The contracts are priced in US dollars, Coro said in the press release.
The first project on which the partners intend to work together has a capacity of 5 MW and is expected to reach a ready-to-build status this year. Coro will cover USD 500,000 (EUR 421,600) of planning and permitting costs to de-risk the scheme. It will then have the right to fund the construction, estimated at USD 3.5 million.
Coro will have the option to provide funding for the whole portfolio held by the joint venture.