Vietnam inaugurates $1.27 billion thermal power plant

It is expected to generate 3.6-3.9 billion kWh of electricity a year, said Duong Quang Thanh, chairman of Vietnam Electricity (EVN), the country’s sole electricity distributor.

Construction of the plant commenced in 2014, with a total investment VND26.5 trillion ($1.27 billion). Of this, EVN, the project investor, contributed 15 percent, and the remaining 85 percent came from an ODA loan from the Japan International Cooperation Agency (JICA).

The plant is one of two thermal power projects in Thai Binh Province. Construction of the second, which has a capacity of 1,200 MW, is expected to be completed in 2020.

Vietnam relies largely on hydropower and thermal power plants for its electricity needs. However, its hydropower potential is almost fully exploited and its oil and gas reserves are running low. Thermal energy is expected to account for over 48 percent of the country’s power production in 2019.

While it is one of Asia’s fastest-growing economies, Vietnam been struggling to develop its energy industry.

World Bank country director for Vietnam, Ousmane Dione, said at a recent forum that Vietnam will need to raise up $150 billion by 2030 to develop its energy sector.

Dione added that electricity demand in the country will grow by about 8 percent a year for the next decade.