AES to sell Vietnamese coal-fired plant by early 2022

Published on January 06, 2021 by Chris Galford

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On the final day of 2020, the AES Corporation reached an agreement with a consortium to sell its entire equity interest in the 1,242 MW Mong Duong 2 coal-fired power plant in Vietnam.

The deal, expected to close either late this year or early 2022, requires sign-off from both the Vietnamese government and the minority partners involved in Mong Duong 2 but appears likely. While AES had been involved in Mong Duong since its construction in 2015, it attributes its sudden extrication as part of a global move to invest in renewables and liquefied natural gas (LNG) infrastructure.

“We have had a very positive experience in developing, building and owning Mong Duong 2 and Vietnam remains an important growth market for AES, where we look forward to contributing to the country’s transition to a more sustainable energy future,” Andrés Gluski, AES President and CEO, said. “In line with our global strategy to invest in renewables and LNG infrastructure, in Vietnam, we continue to make good progress on the development of the 450 TBTU Son My LNG terminal with PetroVietnam (PVN) and the 2,250 MW Son My 2 combined cycle gas power plant.”

AES owns a 51 percent interest in the facility, with the rest divided between Posco Energy Company Limited and Stable Investment Corporation. A 25-year Power Purchase Agreement remains in effect with Vietnam Electricity, a state-owned utility.