VPower Group (SEHK: 1608), one of Southeast Asia’s largest gas-fired engine-based Distributed Power Generation (DPG) owner and operator, was awarded an extension to its Kyauk Phyu DPG station phase I (“KP-I”), to make the same power generation capacity available all the way to 2021.
The 5-year renewal took effect immediately after the original contract has ended, and KP-I continues to supply power from the strategically located Rankine state of Myanmar. The renewal is signed with financial terms similar to the original agreement. KP-I first went online in Q1 2015, built within 4 months after its contract signed. The total installed capacity doubled in Q1 2016 with the completion and launch of KP-II, taking the total installed capacity of the utility-grade gas-fired DPG stations to just under 100MW at the same location.
“We welcome the contract extension, as it is a recognition of our past performance. We are committed to support the well development of Myanmar for the long term, and our rates reflect that, which have been kept constant for the renewal,” said Rorce Au-Yeung, Co-CEO of VPower. “The reliability and capabilities of our fast-track power station are recognized by the government of Myanmar hence a longer renewal period is resulted, and we are proud to run the power station for another 60 months.”
Operating under VPower’s Invest, Build and Operate (“IBO”) business segment, KP-I is the company’s first power station in Myanmar. The business focuses on addressing regions with power shortages, where DPG can meet their immediate electricity needs with installations that are modular in design, making it highly mobile and scalable.
“On top of advantages including lower capital investment upfront compared to traditional centralized power plants and improved predictability on financing over the leasing term, DPG can also be expected to play a key role in the imminent shift in power mix many fast-developing regions are transitioning into.” He added.
KP-I also includes a 230kV power substation to connect to the national grid and complements the existing power supply. KP-I has been awarded ‘Gas Power Project of the Year’ and ‘Fast-Track Power Plant of the Year’ by the Asian Power Awards in 2015.
VPower Group is one of the leading gas-fired engine-based DPG station owner and operator in Southeast Asia, and one of the world’s leading large gen-set system integration providers. The company derives operational synergies between its System Integration (SI) and Invest, Build and Operate (IBO) businesses. Under its IBO business, the company designs, invests in, builds, and operates utility-grade DPG power stations. It is headquartered in Hong Kong and was listed on the Stock Exchange of Hong Kong in November 2016.