14:42 (GMT +7) - Saturday 25/11/2017

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Kepco & Marubeni to build coal-fired power plant

Released at: 10:22, 10/11/2017

Kepco & Marubeni to build coal-fired power plant

Photo: Kepco

Consortium to build 12,000 MW, $2.3 billion plant in Thanh Hoa province.

by Quang Huy

South Korean utilities provider the Korea Power Electric Corp. (Kepco) has signed a $2.3 billion deal to build a coal-fired plant in Vietnam, the company said on November 9.

A consortium involving Kepco and Japanese trading firm Marubeni will be in charge of construction as well as the operation of the 1,200 MW plant at the Nghi Son 2 Economic Zone in the north-central province of Thanh Hoa, about 200 km south of Hanoi.

The State-run Kepco and Marubeni will both hold a 50 per cent share in the project. Kepco expects to receive around $13.2 billion through the plant’s operations over a 25-year period.

Construction will begin later this year with completion targeted for the end of 2021.

The consortium signed a turnkey-basis contract with Doosan Heavy Industries and Construction to build the coal-fired plant, the company added. The Export-Import Bank of Korea will invest 75 per cent of the $2.3 billion needed for construction, Kepco said.

The two-turbine project with total capacity of 1,200 MW has been approved by the Vietnamese Government, who selected the two companies as investors under the build-operate-transfer (BOT) mode following an international public auction.

The project is expected to supply electricity for the economic development of the northern region while ensuring national energy security.

Vietnam’s annual power consumption is about 162 billion kWh, according to estimates by Electricity of Vietnam (EVN). It has some 20 coal-fired plants and plans to increase the number to 32 by 2020 and 51 by 2030. This means that, by 2020, the country’s coal plants will be producing 49 per cent of its electricity output by burning 63 million tons of coal.

This would then reach 129 million tons by the time it has all 51 plants in operation. Its revised National Power Development Plan for 2011-2020 (PDP XII) makes it clear that thermal power will be the mainstay of its energy mix.

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