An extensive solar power plant is scheduled to be constructed in a south-central Vietnamese region at a cost of VND875 billion (US$38 million).

The administration in Binh Thuan Province has approved the construction of the Luy River 1 Solar Power Plant in Bac Binh District, Do Minh Kinh, director of the provincial Department of Industry and Trade, said on Thursday.

The project is slated to begin in June and due for completion in March 2019, when it is connected to the national grid via a 110kV transmission line.

The facility covers a 41.5-hectare area and is expected to have the capacity of 75 million kWh during the first year of operation.

It deploys solar panels made of multicrystalline silicon, a type of highly pure silicon commonly found in such electrical devices worldwide.

Vietnam considers Binh Thuan, which has a long dry season, as a national center for the production of energy, including eco-friendly and renewable energy.

The entire province has licensed solar power projects, collectively receiving around VND11,730 billion ($514 million) in investment.

The local government has encouraged the investment into clean and renewable energy projects but the greatest hindrance is that they require an enormous amount of capital, director Kinh said.

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