Coro inks 25-year power purchase deal in Vietnam

South east Asia-focussed Coro Energy announced the entry into a 25-year power purchase agreement for its rooftop solar project in Vietnam on Monday.

The AIM-traded firm said the agreement was entered into by Coro Renewables Vietnam, which is 85% owned by Coro and 15% owned by its local partner, Vinh Phuc Energy.

It would see Phong Phu - a listed high-volume manufacturer of textiles - purchase 3MW of electricity annually from the previously-announced 5MW project, for the 150MW rooftop solar project.

Electricity would be supplied under the agreement once the solar equipment is installed at the equivalent of 7.3 US cents (5.6p) per kilowatt-hour, with a 1% annual escalator.

The power purchase agreement was expected to generate total revenues between $9m and $11m 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 chief executive officer Mark Hood.

“We can now look forward to revenues from both transition fuels.”

At 1308 BST, shares in Coro Energy were up 6.45% at 0.5p.