Coro Energy PLC (AIM:CORO) said it entered into a 25-year power purchase agreement (PPA) for its rooftop solar project in Vietnam.
The agreement has been entered into by Coro Renewables Vietnam, which is 85% owned by Coro and 15% by Vinh Phuc Energy JSC, Coro’s local partner, and Phong Phu, a Vietnamese high-volume textile manufacturer.
Phong Phu will purchase 3MW of electricity annually as part of the PPA, the South East Asian energy company said.
Electricity will be supplied at 7.3 US cents per kWh, with a 1% annual increase.
The PPA is expected to generate revenues between US$9mln and US$11mln over the 25-year duration.
"I am delighted that we have now signed our maiden supply contract in Vietnam which, on the back of the re-birth of our Italian portfolio, re-enforces our energy transition strategy with both gas and renewables taking centre stage,” said Coro Energy chief executive Mark Hood.