New hydroelectricity dam offers power surge

January 13, 2014

A major hydroelectric plant has come online in the central province of Nghe An, easing Vietnam’s chronic power shortage.

Locally- owned Za Hung last week officially put into commercial operation its VND800 billion ($38 million) Nam Pong hydroelectricity plant in Nghe An’s Quy Chau district.

“This plant will supply 70 per cent of the power for Nghe An. Each year, it will have a turnover of VND130 billion ($6.2 million), and contribute VND15 billion ($714,300) to the stage coffers,” said a report on the plant.

Under construction from 2010 to 2013, the 30 megawatt plan has two turbines and will annually produce 130 million kilowatt hours.

The investor had already signed a power purchasing deal with the state-run Electricity of Vietnam.

The plant was constructed by a number of local companies, including Song Da 505, Song Da 902 and Power Construction Installation Company No4, as well as two Chinese firms, China Machinery Engineering and Zhejiang Hydropower Construction and Installation.

Za Hung was jointly established in November 2005 by locally-owned Ha Do Group, Bac A Bank, An Lac and ASEAN International.

After its established, Za Hung built the 30MW Za Hung hydropower plant in the southern central province of Quang Nam’s Dong Giang district, which has produced over 130 million kWh since 2009.

Since 2012, the prime minister has several times and Trade (MoIT) and localities to review the development of hydropower projects, saying that any project that was ineffective or prone to environmental pollution must be scrapped.

Under plans already approved by the prime minister, the MoIT and provincial government, Vietnam has 1,239 hydropower projects either operational or in the planning stages, with the total designed capacity of over 26,000MW.

However, according to the MoIT, after the removal of ineffective projects are ordered by the government, just 815 projects will be kept, capable of producing more than 24,300MW. 268 of these are operational, while a further 205 are currently under construction, and the remainder are scheduled to become operational by 2017.

The MoIT reported that hydropower provides 48.26 of Vietnam’s power generation capacity.

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