PV Power mobilises capital for Nhon Trach 3 and 4 thermal power plants

PV Power is ready to begin the Nhon Trach 3 and 4 thermal power projects in Dong Nai

According to information published by PV Power, the consultancy agency of these projects – Power Engineering Consulting JSC 2 – completed the feasibility study. PV Power will submit the basic report to the Ministry of Industry and Trade for approval and send a document to Electricity of Vietnam (EVN) to discuss grid connection. Besides, the company will work with Electric Power Trading Company and PV Gas to negotiate about the power and gas purchase agreements for the two projects.

Regarding the investment capital, along with loans from banks and credit funds, as well as equity, PV Power announced that the Thai investor expressed intention to invest in these two projects, which is part of the MoU on investment co-operation signed by the two parties.

Previously, in November 2019, PV Power and B.Grimm Power, an investment branch of Thai B.Grimm Group, signed an MoU to co-operate on the development of LNG warehouse and port chains as well as gas-to-power projects. Besides, the two parties committed to discuss and share experiences to operate and maintain power plants.

B.Grimm Power is a major investor and developer of renewable energy projects. Currently, B.Grimm Group operates 45 power projects with a total installed capacity of 2,892MW, including 24 solar power projects (two solar power projects of which have been just put into operation in Vietnam's Tay Ninh and Phu Yen provinces with a total capacity of 677MW), 17 thermal power projects, three hydropower projects, and one diesel project. Besides, the group is developing another 11 power projects that will increase its total capacity to 3,245MW.

Back to Nhon Trach 3 and 4, PV Power took over the two projects from PetroVietnam after collecting the opinions of ministries and relevant authorities.

According to plan, the two thermal power plants will cover an area of 34 hectares and have a total investment capital of VND33.3 trillion ($1.5 billion), with the generation capacity of 750-800MW each. The projects will use LNG imported from the Thi Vai storage terminal.

PV Power will spend VND9.99 trillion ($434.35 million) of its equity and VND23.31 trillion ($1 billion) from loans to develop the two projects.

In 2019, PV Power generated 22.54 billion kWh, exceeding its initial plan by 4 per cent and generated VND35.88 trillion ($1.56 billion) in revenue, up 10 per cent against the plan.