Prime Minister Pham Minh Chinh attended Song Hau 1 Thermal Power Plant’s inauguration ceremony over the weekend. The plant costs more than VND43 trillion ($1.8 billion) and is located in the town of Mai Dam, Chau Thanh district, Hau Giang province.
Hau Giang is a province in the Mekong Delta, 240km from Ho Chi Minh City.
PM Chinh said that the inauguration of Song Hau 1 Thermal Power Plant is of great significance as it helps ensure the country’s energy security. This is especially because, during the first quarter of this year, Vietnam saw a lack of 300MW of thermal power due to a coal shortage, according to Agribank Securities Company.
The PM added the plant’s operation will also support promoting growth, economic restructuring, and the industrialization process of Hau Giang Province and the nation. In addition, the plant will create a significant contribution to providing the supply and demand balance in the South and Southwest regions
After nearly seven years of construction, on 26 November 2020, unit 1 of Song Hau 1 TPP synchronized and started generating power for the national power system. On 12 April 2022, Song Hau 1 TPP was handed over to the investor by the EPC general contractor to be ready for commercial operation of the whole plant.
The state-run Vietnam National Oil and Gas Group (PVN) is the developer of the project that has a total capacity of 1,200MW and has so far generated and supplied over two billion kWh of electricity to the national grid.
At the ceremony, PVN pledged to operate the plan in a safe, stable, and efficient manner, and to cooperate with Vietnam Electricity Group (EVN) in optimizing the power output of the plant. The developer also said they will work with the Hau Giang authorities to guarantee security for the residents and protect the environment.
The combined capacity of PVN's power plants has reached 5,405MW, accounting for more than 7% of the total capacity and about 10% of the electricity output of the entire national power system.
The Song Hau 1 TPP facility is expected to contribute about 7.2 billion kWh a year to the national grid, meeting the demand for electricity in the southwestern region and the whole country in general.
Its annual revenue is expected to reach about VND15-20 trillion ($639.5-852.6 million), making an important contribution to PVN’s total revenue, and to the central and local budgets.