Construction of $52 million solar power plant starts in central Vietnam

Work has begun on a $52 million solar power plant in the south central province of Ninh Thuan.

Project representatives said that of the total investment of VND1.2 trillion ($52.2 million), VND900 billion ($39.1 million) will go towards equipment costs; and the rest for land clearance and construction.

"The Phuoc Huu solar plant project will supply clean energy to the national electricity system and cater to power demand in the whole country in general and Ninh Thuan Province in particular," said a representative of Nha Trang Bay Investment and Construction JSC, the project investor.

In the first year of operation, the power plant is expected to generate about 104.1 million kWh.

“The construction of Phuoc Huu solar power plant aligns with directions from the government, the Ministry of Industry and Trade and the Vietnam Electricity's orientation to develop clean energy,” the representative said.

Vietnam currently relies largely on hydropower and thermal power plants for its electricity demands, but these projects have drawn frequent domestic and international criticism for their social and environmental impacts.

Solar power currently accounts for just 0.01 percent of the country’s total power output, but the government plans to increase the ratio to 3.3 percent by 2030 and 20 percent by 2050.

Vietnam aims to produce 10.7 percent of its electricity from renewable energy sources by 2030, mainly through solar and wind power projects.