The AES Corporation (NYSE: AES) signed an agreement on December 31, 2020 to sell its entire equity interest in the 1,242 MW Mong Duong 2 coal-fired power plant in Vietnam to a consortium led by a US-based investor. 

This transaction is expected to close in late 2021 or early 2022, subject to customary approvals, including from the government of Vietnam and the minority partners in Mong Duong 2. 

“We have had a very positive experience in developing, building, and owning Mong Duong 2 and Vietnam remains an important growth market for AES, where we look forward to contributing to the country’s transition to a more sustainable energy future,” said Andrés Gluski, AES president and chief executive officer.

“In line with our global strategy to invest in renewables and LNG infrastructure, in Vietnam we continue to make good progress on the development of the 450 TBTU Son My LNG terminal with PetroVietnam (PVN) and the 2,250 MW Son My 2 combined cycle gas power plant.” 

AES owns a 51 percent equity interest in Mong Duong 2, Posco Energy Company Limited owns 30 percent, and Stable Investment Corporation, a subsidiary of China Investment Corporation, owns the remaining 19 percent. 

The construction of Mong Duong 2 was completed in 2015 under a Build-Own-Transfer (BOT) contract, with a 25-year Power Purchase Agreement (PPA) with Vietnam Electricity (EVN), a state-owned utility.

The AES Corporation (NYSE: AES) is a Fortune 500 global energy company accelerating the future of energy. 

“Together with our many stakeholders, we’re improving lives by delivering the greener, smarter energy solutions the world needs,” the company said in a press release on Monday.

“Our diverse workforce is committed to continuous innovation and operational excellence, while partnering with our customers on their strategic energy transitions and continuing to meet their energy needs today.”