AES has commissioned the 1,240MW Mong Duong 2 coal-fired power plant in Vietnam six months ahead of schedule.
The plant, located in the Quang Ninh Province, cost $1.95bn and was constructed by AES-VCM Mong Duong Power, a joint venture between AES, Posco Energy and China Investment, under a build-operate-transfer agreement.
The facility comprises two generating units of 620 MW gross capacity each and has a 25-year coal supply agreement with state-owned entity Vinacomin.
Electricity generated by the facility will be sold to state-owned power company Vietnam Electricity under a 25-year power purchase agreement.
AES president and CEO Andrés Gluski told Energy Business Review, “Executing on our 7GW construction program is the main driver of our cash and earnings growth through 2018.
The Vietnam Institute of Energy and the National Center for Socio-Economic Information and Forecast estimates Vietnam’s power demand and the gross domestic product to increase by 10.5% and 6.5%, respectively, over the next five years.
The Vietnam Government has set target to increase its installed capacity by more than 60 GW over the next five years.
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