US-based power company AES has commenced commercial operations at its 1,240MW Mong Duong 2 Plant in the Quang Ninh province of Vietnam.
The coal-fired power plant is said to be first private sector power plant in the country and started operations six months earlier than planned.
AES owns a 51% stake in the $1.95bn plant while POSCO Power subsidiary PSC Energy Global and Stable Investment have a respective stake 30% and 19% in the project.
AES president and CEO Andrés Gluski said, "Bringing the 1,240MW Mong Duong 2 plant online six months early is a significant milestone for Vietnam and for AES.
"Executing on our 7GW construction programme is the main driver of our cash and earnings growth through 2018.
"Beyond Mong Duong 2, we see a number of potential opportunities for AES in Vietnam, to help meet their rapidly growing demand for electricity."
Mong Duong 2 plant has been built under a build-operate-transfer (BOT) basis and the ownership will be transferred to the Vietnamese Government after 25 years of operation.
Electricity of Vietnam has signed a 25-year Power Purchase Agreement (PPA) for the electricity generated from the plant while a 25-year coal supply agreement has been signed Vietnam’s state owned company Vinacomin.
AES Global Engineering and Construction senior vice-president Michael Chilton said, "Our remaining 6GW under construction are progressing well and are on time and on budget."
The plant is part of Vietnam Government’s plan to increase its installed power generation capacity by more than 60GW over the next five years.
Image: Mong Duong 2 is located in the Quang Ninh province of Vietnam. Photo courtesy of AES.