The $1.2 Billion Energy Giant Enters the EV Charging Game: Announces Competitive Rates of VND 3,858/kWh, on Par with VinFast

PV Power, the Vietnam Petroleum Power Joint Stock Corporation, is embarking on an ambitious expansion of its business operations. As part of this initiative, the company is currently researching and investing in the development of its first pilot electric vehicle charging station.

PV Power views this investment in building and providing charging stations for electric vehicles as a strategic opportunity to diversify its business portfolio and align with its future growth plans. The company recognizes that the establishment of these pilot charging stations is a crucial first step towards achieving its broader goals of expanding the number, location, and capacity of charging infrastructure nationwide.

To that end, PV Power has entered into a collaborative agreement with EN Technologies Inc. to jointly research and develop a charging system in Vietnam. PV Power’s responsibilities include securing prime locations for the stations, providing the necessary technical infrastructure, such as electricity supply and ancillary equipment, and handling construction, installation, site improvement, and other associated costs and permits. After a thorough evaluation process, PV Power has chosen to establish the pilot electric vehicle charging station at 6 Huynh Thuc Khang, Hanoi.

The fast DC charging station boasts a total power capacity of 100-120kW and occupies an area of approximately 30-35 square meters. It features two upright charging dispensers, each equipped with two charging ports delivering 50-60kW of power per port. The dispensers are fitted with display screens and offer a convenient QR code payment option. The construction of the charging station complies with all relevant regulations, standards, and guidelines pertaining to construction management, quality control, safety, and environmental considerations.

The total investment cost for this project is estimated to be over VND 1.8 billion.

Revenue from charging services will be calculated based on estimated charging volume and a tiered pricing structure with off-peak, regular, and peak rates. The average charging rate is anticipated to be around VND 3,858 per kWh, on par with VinFast-operated charging stations and more competitive than certain other providers in the market.

Following a comprehensive testing phase, PV Power will conduct a thorough assessment of the charging station’s technology, operation, safety, customer experience, and overall performance. This feedback will guide specific adjustments to ensure the project’s success and maximize its potential.

The construction of this pilot charging station serves as a foundational step for PV Power to establish a comprehensive plan for investing in and installing additional charging infrastructure. By experimenting with different pilot stations, varying power capacities, and equipment suppliers, along with operational adjustments, the company will gain invaluable insights to optimize investment and operational costs. This iterative approach will also contribute to a more efficient capital recovery timeline and enhance the overall profitability of the venture.

By initiating these pilot projects, PV Power aims to not only gain practical experience in the development and operation of charging infrastructure but also to fine-tune its technology choices, cost assessments, and deployment strategies. These initial ventures will provide a solid foundation for gauging market demand and consumer preferences, enabling the company to build on its strengths and make any necessary adjustments to align with the dynamic market environment.

Through the insights gained from testing and operating these electric vehicle charging stations, PV Power will attain a comprehensive understanding of the EV charging landscape and the broader EV market. This knowledge will inform the company’s timely and strategic decisions as it strives to expand its reach, enhance its offerings, and solidify its position as a trusted provider of electric vehicle charging infrastructure throughout the country.

Currently, the Vietnamese government is actively promoting and setting goals for the transition from fossil fuel-powered vehicles to electric alternatives. As the demand for electric cars among the populace continues to surge, with an eventual target of 100% electrification, ensuring seamless transportation and meeting the corresponding energy requirements become paramount. The development of a robust EV charging infrastructure must go hand in hand with the growing popularity of electric vehicles.

Additionally, as the EV charging infrastructure expands, it will attract more foreign electric vehicle manufacturers to invest in Vietnam, fostering diversity in the market and bringing the country closer to achieving its environmental and sustainability goals. While VinFast’s dedicated charging stations cater to their vehicle ecosystem, the overall landscape for electric vehicle charging in Vietnam remains sparse compared to the rapidly rising demand for these vehicles.

With a market capitalization of VND 31,264 billion on the stock exchange, PV Power recorded a revenue of VND 15,650 billion and a net profit of VND 667 billion in the first half of 2024. As of June 30, 2024, the company’s total asset value stood at nearly VND 81,000 billion.