$1.4 billion Nhon Trach 3 and 4 to operate in 2025

Nhon Trach 3 and 4 power plants in Dong Nai. Photo: baodautu.vn

The two power plants have a total planned capacity of 1,624MW and are expected to contribute more than nine billion kWh of electricity per year.

At present, PV Power and its contractors are focusing on completing the final steps ahead of the pilot operation period.

PV Power currently operates Vung Ang 1 thermal power plant, four gas-to-power plants namely Nhon Trach 1 and 2, and Ca Mau 1 and 2, along with two hydropower plants, Hua Na and Dakdrink.

SSI Research forecasts that the revenue of PV Power is estimated at VND37.3 trillion, up 30 per cent on-year thanks to the contribution of the revenue worth over VND3.8 trillion ($159 million) from Nhon Trach 3 and VND1.94 trillion ($80.8 billion) from Nhon Trach 4. These revenues are calculated based on the capacity of 1.565 million kWh of Nhon Trach 3 and 790 million kWh of Nhon Trach 4 multing with the selling price of VND2,460 per kWh.

In early October, PV Power signed a Power Purchase Agreement (PPA) for the Nhon Trach 3 and 4 with the Power Trading Company.

PPAs are among the most significant contracts for investing in a power plant project, along with long-term power purchase agreements and framework agreements for electricity pricing. These represent critical elements for any project before it goes into commercial operation.

With the most cutting-edge gas turbine technology on the market, provided by US giant GE, Nhon Trach 3 and 4 represent the nation’s first liquefied natural gas (LNG) fuelled power plant, boasting the highest capacity and efficiency to date.

As the first LNG power plant project in the nation, the Nhon Trach 3 and 4 present a unique challenge during the PPA negotiation process due to the lack of precedence. The signing of the PPA will therefore require PV Power to negotiate a gas purchase agreement with a confirmed timeframe, annual LNG purchase volume, consistent gas delivery plan, and the most affordable gas pricing.

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