The ceremony were attended by Mr. Ngo Son Hai - EVN Deputy General Director, Mr. Nguyen Dinh Doan - Director of Electric Power Trading Company, representatives of the functional departments of EVN and its subsidiaries.
For Yunnan International Company Ltd. (YNIC), there were Mr. Zi Shu Ming – President of YNIC, Mr. Zhang Yun Hu - Deputy General Director and representatives of the departments of YNIC.
Two companies signs the 220kV power purchase agreement for the period 2016-2020 – Photo: Minh Ngoc
Following EVN instructions, in order to ensure safe and stable power supply as well as to diversify energy supply sources, on 10 July 2015, the Electric Power Trading company officially requested YNIC to negotiate an agreement on purchasing 220kV power for the period 2016-2020 (Stage 3) via Lao Cai and Ha Giang provinces.
After the negotiation, two parties agreed on main terms and conditions of the power purchase agreement as follows:
Maximum capacity of Guman - Lao Cai 220 kV line shall be 450 MW;
The maximum capacity of Malutang - Ha Giang 220 kV line shall be 350 MW.
Total purchased power transmitted via both lines purchased in 2016 shall be 1,500 GWh.
In November each year, two parties will negotiate and agree on the maximum capacity and the total power to be purchased in the coming year.
EVN may not purchase power during 4 months of flood season. And for the convenience of EVN in case EVN no longer needs to purchase power, the Malutang - Ha Giang 220kV line shall be kept in live standby mode, and Guman - Lao Cai 220 kV line shall have one line in live standby mode and one in off standby mode.
The electricity price in 2016 agreed by both parties is 5.87 UScent / kWh. Both parties retain the power price adjustment formula according to difference in exchange rates between the US dollar and the Yuan in the power purchase agreement of Stage 2.
It is known that the first 220 kV power purchase agreement to import power through the Tan Kieu - Lao Cai 220kV line has been signed between EVN and YNPG on October 31th, 2005. On June 5th, 2006, two parties continued to renew the 220 kV power purchase agreement through Ma Quan - Ha Giang 220kV line. In both stages from the first agreement until the end of stage 2 on December 31st 2015, the two parties have been working under friendship cooperation and strictly following the provisions of the signed agreements. From 2006 through 2015, EVN had bought 24.128 billion kWh from China.