Vietnam is embarking on a large expansion of generating capacity with 11 new plants fired by natural gas and coal to deliver an additional 7,600 MW.
State-owned oil company PetroVietnam announced it would build or seek partners to help build nine gas-fired TPPs in southern Vietnam with an overall capacity of 5,200 MW, while several foreign companies have received final green light licences to build two coal-fired TPPs further north, Vietnam News Agency (VNA) said.
The nine gas plants will be fuelled from two domestic offshore fields, as well as LNG imports. The main investor for two of the plants at Nhon Trach, costing US$1.4 billion, will be PetroVietnam subsidiary PV Power, Enerdata said.
PetroVietnam hopes to fund the other seven gas power projects partially through investment from domestic and foreign businesses. No timetable for the PetroVietnam projects has been announced.
Most of Vietnam’s domestic gas resources are in fields off the south coast, and southern Vietnam is experiencing the country’s fastest economic development, with reports saying electricity demand is growing 11% a year.
Separately, final approvals were given this week for two large coal-fired TPPs.
Investment licences were finally approved for Japan’s Marubeni Corp. and South Korea’s KEPCO to proceed with the US$2.8 billion, 1,200-MW Nghi Son 2 plant in northern Thanh Hoa Province.
Loans to finance the plant will be provided by the Japan Bank for International Co-operation and the Export-Import Bank of Korea, it said. Site work is scheduled to begin in early 2018.
Meanwhile, ACWA Power of Saudi Arabia and South Korea’s Taekwang Power Holdings received an investment certificate for the US$2.3 billion Nam Dinh 1 thermal power project south of the capital Hanoi.
ACWA CEO Paddy Padmanathan said: “Being granted the investment certificate represents a significant step in the project’s development and, more importantly, it demonstrates a commitment by the Vietnamese government to protect foreign investors and encourage the participation of private investors.”
Coal’s share of Vietnam’s power mix has climbed to 36% from 19% five years ago.