Thailand’s EGAT International Co started construction on Friday of a VND55 trillion (US$2.37 billion) coal-fired power plant in north-central Vietnam, Vietnamese state media reported.
The 1,320-megawatt Quang Tri 1 plant is being built in Quang Tri Province, reported the Vietnam News Agency.
The plant, the largest-ever project of its kind in Quang Tri, is expected to contribute VND1.25 trillion ($53.69 million) yearly to the state budget, the state media said.
EGAT International is a wholly-owned subsidiary of the Electricity Generating Authority of Thailand.
Vietnam, one of Asia’s fastest-growing economies, has become more reliant on coal for electricity production, even as it promotes renewables.
Vietnam’s coal imports in the first ten months of this year more than doubled from a year earlier to 36.8 million metric tons, government data showed.
The coal, sourced mainly from Australia and Indonesia, is used mostly for an expanding fleet of coal-fired power plants.