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VPCL owns and operates a 1,320 MW high-efficiency, low-emission coal-fired power plant in Khanh Hoa province. The transaction, announced on October 29, marks a key milestone in AboitizPower's regional expansion strategy, signalling its growing role in Southeast Asia’s energy landscape.
The Van Phong power plant, which commenced commercial operations at the start of 2024, operates under a 25-year power purchase agreement with Vietnam's national utility, Vietnam Electricity. The Van Phong 1 plant is designed to supply about 8.5 billion kWh per year to the national grid, equivalent to around 4 per cent of Vietnam's annual gross power generation. This is the largest foreign-invested power plant in Van Phong Special Economic Zone, located in the central province of Khanh Hoa.
With this investment, AboitizPower aims to deliver sustainable returns to shareholders while maintaining a balanced energy portfolio. The move complements the company’s renewable energy programme and supports its long-term strategy for a balanced energy transition, contributing to reliable and affordable power systems.
The closing of the transaction is subject to customary closing conditions, including securing the necessary regulatory approvals.
Sumitomo Corporation is one of Japan's highly diversified conglomerates with a long history, tracing its roots back to the 17th century, though the modern trading company was established in 1919.
