Vietnam Electricity connected Unit 1 of the Quang Trach 1 Thermal Power Plant to the national grid for the first time on April 12, 2026, after a project history spanning more than a decade of ownership changes, supply chain disruptions, and repeated schedule revisions. The milestone places the 1,400-megawatt coal-fired facility in Quang Binh Province on course for commercial power generation in May 2026, with the country entering a period of peak summer electricity demand.
Key Facts At A Glance
- Grid synchronisation of Unit 1 achieved at 12:00 on April 12, 2026, at Quang Trach Power Center, Quang Binh Province
- Project investor: Vietnam Electricity (EVN); implementing body: Power Project Management Board 2 (EVNPMB2)
- EPC contract value: VND 30.23 trillion (approximately USD 1.31 billion), signed June 17, 2021
- EPC consortium: Mitsubishi Corporation (Japan), Hyundai Engineering and Construction (South Korea), Construction Corporation No. 1 (Vietnam)
- Total project investment: VND 41.13 trillion (approximately USD 1.7–1.8 billion); EVN equity: 30%; balance from domestic commercial loans led by Vietcombank
- Plant capacity: 2 units of 700 MW each, totalling 1,400 MW; ultra-supercritical coal technology
- Expected annual electricity output: approximately 8.4 billion kWh
- Commercial operation of Unit 1 targeted for May 2026; Unit 2 targeted for October 2026
- Project first broke ground under PetroVietnam in July 2011; original commissioning target was 2015
A Milestone Fifteen Years In The Making
The Quang Trach 1 Thermal Power Plant has one of the longest development histories of any energy infrastructure project in Vietnam. PetroVietnam broke ground on the 48.6-hectare site in Quang Dong Commune, Quang Trach District in July 2011, with commissioning of Unit 1 originally scheduled for June 2015 and Unit 2 for December 2015. Neither target was met. After years of slow implementation, the Vietnamese government transferred the project to state utility Vietnam Electricity in October 2016.
EVN restarted the tendering process and in June 2021 awarded the EPC contract, valued at VND 30.23 trillion, to a consortium comprising Mitsubishi Corporation of Japan, Hyundai Engineering and Construction of South Korea, and Vietnam’s Construction Corporation No. 1. The contract set a timeline of 42 months for Unit 1 and 48 months for Unit 2 from signing, putting the original commercial targets at late 2024 and mid-2025 respectively. Those timelines also slipped. The Covid-19 pandemic and the Russia-Ukraine conflict disrupted equipment delivery schedules and drove up prices for steel, electromechanical components, and maritime freight, placing substantial pressure on contractors operating under a fixed-price structure. Exchange rate volatility added further complexity to contract management and cost control.
By end-March 2026, overall project completion stood at approximately 98 percent. Dao Ngoc Long, Deputy Director of EVNPMB2, confirmed in reporting by Vietnam Investment Review that major construction works had been substantially finished, commissioning was underway, and the project had accumulated more than 21 million safe working hours without a recorded environmental incident.
The Grid Connection And What It Means
At noon on April 12, Unit 1 was synchronised with Vietnam’s national electricity grid. During this commissioning phase, the turbine, generator, and control systems were subjected to technical checks in line with standard procedures. Vietnam Electricity confirmed that initial readings showed key parameters within design specifications, with the unit operating stably.
The grid synchronisation is a precondition for commercial generation. EVN has targeted May 2026 for Unit 1 to begin supplying power to the grid on a commercial basis, with Unit 2 expected to follow in October 2026. Once both units are fully operational, the plant is projected to contribute approximately 8.4 billion kWh annually to the national power system. That output would flow through the 500kV circuit 3 transmission line, connecting the plant into the broader national high-voltage grid and enabling distribution across Vietnam’s North Central region.
Financing Structure And Fuel Supply
The Quang Trach 1 project carries a total investment of approximately VND 41.13 trillion. EVN contributed 30 percent of project capital directly, with the remaining 70 percent financed through domestic commercial loans, led by Vietcombank, which signed a credit agreement in June 2021. The arrangement was notable as EVN’s first major infrastructure project financed through commercial bank loans without a government guarantee, a structure requiring the Vietnamese prime minister to intervene in May 2021 to increase EVN’s authorised credit ceiling to allow the loan to proceed.
On fuel, the plant is designed to operate on imported bituminous and sub-bituminous coal. EVNPMB2 has secured supply agreements with Indonesian coal suppliers to cover the commissioning phase, with the first commercial shipment expected to arrive at the plant’s dedicated port shortly. For long-term operation, a coal supply contract has been executed with Dong Bac Corporation, a domestic trading entity. The plant’s coal import port, now capable of receiving vessels of up to 60,000 tonnes, is also expected to be upgraded to 100,000-tonne capacity by end-May 2026. On-site coal storage can sustain full-capacity continuous operation for approximately 37 to 38 days without new deliveries.
The Quang Trach Power Center And Vietnam’s Energy Transition
The Quang Trach 1 plant sits within the Quang Trach Power Center, a broader energy hub that the Vietnamese government has designated for phased, multi-fuel development. Two LNG-fired power projects are advancing within the same complex. The Quang Trach 2 LNG plant had its EPC contract signed in February 2026, with groundbreaking preparation completed pending formal government authorisation. The Quang Trach 3 LNG plant has received provincial investment policy approval, with its feasibility study submitted to EVN and a construction start targeted for the fourth quarter of 2026.
When all phases of the Power Center are complete, the complex is expected to supply approximately 4,400 MW to the national grid. Vietnam’s updated Power Development Plan VIII designates Quang Trach 2 as an LNG project, reflecting the broader national commitment to phase out new unabated coal capacity in favour of gas and renewables over the coming decade. The Quang Trach 1 plant itself has been designed with a longer-term environmental pathway: emissions parameters are currently operating at approximately half the permitted regulatory limit, and EVN has indicated plans to evaluate biomass co-firing as a means of compliance with Vietnam’s revised national environmental standards taking effect from 2031.