AES to sell stake in coal-fired power plant in Vietnam

AES Corp. entered an agreement to sell its entire equity interest in the 1,242-MW Mong Duong 2 coal-fired power plant in Vietnam to an unidentified consortium of buyers, led by a U.S.-based investor.

The transaction is expected to close by the end of 2021 or early 2022, subject to approval from the Vietnamese government and minority partners in the power plant, AES said in a Jan. 4 news release.

AES owns a 51% equity interest in the facility while POSCO Energy Co. Ltd. owns 30%. Stable Investment Corp., a subsidiary of China Investment Corp., owns the remaining 19%.

The output is sold under a 25-year power purchase agreement with government-owned Vietnam Electricity, AES said.

The sale is part of AES' objective to reduce its holdings in coal-fired assets worldwide to no more than 10% of its portfolio by 2030.

Meanwhile, AES noted it is maintaining a presence in Vietnam with the development of an LNG terminal and a large gas-fired power plant.