Petrovietnam and Vietnam Electricity has signed a power purchase agreement (PPA) for the Song Hau 1 thermal power plant, an important project for Mekong Delta energy security.
The 1,200 MW plant in Chau Thanh district, Hau Giang province was invested by the state-run Petrovietnam (PVN), with construction commenced in 2015. Its 600 MW turbine 1 started generating power in November 2020. The EPC main contractor Lilama handed the plant over to the investor for commercial operation last month.
The project will deliver 7.3 billion kWh per year to the national power grid, contributing to the national energy security and promoting socio-economic development, said Dang Hoang An, Deputy Minister of Industry and Trade.
PVN currently operates four gas-fired power plants, including the 1,500 MW Ca Mau 1 and 2, the 450 MW Nhon Trach 1 and 750 MW Nhon Trach 2, two hydroelectric plants - the 180 MW Hua Na and the 125 MW Dakdrinh; and the 1,200 MW Vung Ang 1 coal-fired power plant.
In addition to Song Hau 1, the government has assigned PVN to develop two other coal-fired power projects, Long Phu 1 in Soc Trang province and Thai Binh 2 in Thai Binh province.
The group has also accelerated R&D of gas power projects from domestic natural gas sources, including the Block B-O Mon and the Ca Voi Xanh gas projects, as well as liquified natural gas (LNG)-fueled power plants like the Nhon Trach 3 and 4.
PVN’s consolidated revenue reached VND197.12 trillion ($8.59 billion) in the first quarter of this year, up 49% year-on-year.
The state-owned EVN produced 63.03 billion kWh over the period, up 7.8% year-on-year, of which coal-fired power reached 28.37 billion kWh, accounting for 45% of total electricity production.
Under the government’s latest draft Power Development Plan VIII for the 2021-2030 period, with a vision to 2045, of the country's total 146,000 megawatts generated by 2030, 25.7% would stem from coal-fired power.