The Government of Vietnam has granted approval to global power company AES for the development of a new 2.2GW combined cycle gas turbine (CCGT) power plant.
The new Son My 2 plant will be developed in the south-central province of Binh Thuan, Vietnam.
Go deeper with GlobalData
AES president and CEO Andrés Gluski said: “AES is committed to the country’s economic growth and energy transition through the development of gas and renewable infrastructure.
“We appreciate that the Government of Vietnam has selected us to advance this critical project for the country.”
Financial close for the plant is expected to be achieved in 2021. The facility is slated to commence commercial operations in 2024.
Once operational, electricity generated by the power plant will be purchased by the Government of Vietnam under a 20-year contract.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataThe new CCGT plant is expected to complement the company’s investment plans in the gas infrastructure in Vietnam, including its previously announced 450TBtu Son My LNG terminal that was approved by the government in August.
Both the plant and gas terminal infrastructure are expected to play a crucial role in shaping Vietnam’s energy future by expanding the energy mix with imported LNG while meeting the increasing demand of the country’s sustainable and affordable electricity.
Approval for the CCGT plant and the LNG terminal will enable AES to move forward for obtaining necessary permits and associated project agreements.
In June, AES’ subsidiary AES Alamitos started construction on a 400 megawatt-hour (MWh) battery-based energy storage system in Long Beach for Alamitos Energy Center (AEC).
The facility will ensure power flexibility for Southern California Edison (SCE) customers.
