AES has announced the closing of the deal on selling its stake, which accounts for 51 percent at Mong Duong 2 thermopower project, to an investor from Czechia.

The US-based group has reached an agreement with Se.ven Global Investments on the sale. The deal still needs approval of the government of Vietnam and the Ministry of Industry and Trade (MOIT), slated for the end of 2025.

Mong Duong 2 thermopower plant has capacity of 1,242 MW. It provides electricity to Hanoi and northern provinces under a PPA (power purchase agreement) valid for 25 years, with Electricity of Vietnam.

AES Mong Duong Company Ltd, which runs the Mong Duong 2 plant, was previously named AES-TKV Mong Duong Electricity Company Limited. The investor of Mong Duong 2 BOT Thermal Power Project is a limited company established by AES Group (USA), Posco Energy Group (Korea) and China Investment Corporation (CIC).

On April 17, the company was renamed AES Mong Duong Electricity Co Ltd.

AES plans to implement huge power projects in Vietnam.

In July 2023, Son My LNG Terminal Project Company, a joint venture between AES Group and Vietnam Gas Corporation (PV Gas), was granted approval for Son My LNG dock warehouse project by the People's Committee of Binh Thuan. 

The LNG Son My dock warehouse will be set up in Binh Thuan, in the south-central region of Vietnam. It is expected to have installation capacity of 450 TBtu and become commercially operational by 2027.

In February 2023, MOIT Minister Nguyen Hong Dien approved the development of Son My 2 CCGT (combined cycle gas turbine)

Son My 2 CCGT, with total capacity of 2.2 GW, will be set up in Binh Thuan. Capitalized at $1.8 billion, the plant will have a PPA on selling electricity for 20 years.

In related news, the Ministry of Industry and Trade has released a decision on the framework prices applied to electricity generators.

The ceiling price for coal-fired power plants is VND0-1,559.7 per kwh, not including VAT, which means the VND200 per kwh has dropped compared with the 2022 price.

The ceiling price for hydropower plants is VND0-1,110 per kwh, not including water resource tax, forest environment service, and water resources exploitation right fees, and VAT.

MOIT in October reported that five coal-fired power projects with total capacity of 7,220MW have been going slowly because of problems in shareholder structure changes and capital arrangement.

Luong Bang