BCPG Pcl. (SET: BCPG) announced on Thursday that its hydropower plant projects — Nam San 3A and Nam San 3B — in Xieng Khouang and Xaisomboun, Lao PDR, operated by its subsidiary BCPG Indochina Co., Ltd. (BIC), have begun commercial operation and have already distributed electricity to the Socialist Republic of Vietnam per the terms of the power purchase agreement in effect since June 15, 2023.
Both facilities, which have a combined capacity of 114 MW and formerly sold power to Électricité du Laos (EDL), have a 25-year power purchase agreement with Electricity of Vietnam (EVN). In addition, BIC has a joint investment in the 220 kV transmission line project to deliver electricity generated by hydropower projects and adjacent renewable energy power plants to the Socialist Republic of Vietnam.
The electricity distribution to Vietnam is causing the projects to receive a higher tariff rate. The electricity payment will also be made in US dollars and come from the counterparty who has financial stability. The revenue recognition has started since mid-June 2023.