U.S. firm explores more power projects
U.S. firm explores more power projects
AES Corporation of the United States is mulling plans to get involved in more power projects in Vietnam following its investment in the Mong Duong 2 power station, a major build-operate-transfer (BOT) project in Vietnam.
The plans were revealed during a recent inspection trip of Deputy Prime Minister Hoang Trung Hai to the thermal power project invested by AES Corporation with an interest of 51%, South Korea’s Posco Energy Corporation with 30% and China Investment Corporation with 19%, according to Vietnam News Agency.
In 2014, AES expressed keen interest in participating in more power projects in the country. Last September, the corporation inked a memorandum of understanding with the government of Quang Ninh Province to develop Quang Ninh 3 thermal project.
The corporation is expected to find the site for the new power project later this year and has worked with the Ministry of Industry and Trade over the scheduled time for the power plant to come online.
The corporation has plans to invest in local power enterprises subject to equitization in the coming years.
The Deputy PM said Mong Duong 2 was the first BOT power project in Vietnam and AES’s participation in Quang Ninh 3 proved that Vietnam is attractive to foreign investors.
“Vietnam is making great effort to streamline administrative procedures and improve its legal framework to woo more foreign investors,” Hai said.
The two-generator Mong Duong 2 power project worth some US$2 billion was designed to generate 7.6 billion kWh of electricity a year. The project will be handed over to the Vietnamese Government as per the BOT contract after 25 years of operation.
Besides Mong Duong 2, Quang Ninh Province is home to Mong Duong 1 thermal power facility, whose first generator has been connected to the national grid.
Le Duc Chan, director of Mong Duong Thermal Power Company, said the Mong Duong 1 project costs nearly US$1.8 billion and consists of two generators with a combined capacity of 1,080 MW and installed by Hyundai Engineering and Construction Co. Ltd. (Hyundai E&C).
The thermal power station will generate about 5.8 billion kWh of electricity a year for the Northern Key Economic Zone when the second generator is commissioned in mid-2015.
Vietnam Electricity Group (EVN) said approximately 128 billion kWh was consumed last year, up 12.3% against 2013. Electricity consumption rose by15.25% in the north, 11.12% in the central region and 9.41% in the south last year.
EVN has estimated electricity consumption this year at 142 billion kWh, up 10.4% compared to 2014.
