Aboitiz Power Corporation (AboitizPower) has announced plans to acquire a 25% equity stake in Van Phong Power Company Limited (VPCL) from Japan’s Sumitomo Corporation, thus marking its first major investment outside the Philippines.

VPCL operates the 1,320-megawatt (MW) Van Phong 1 high-efficiency, low-emission (HELE) coal-fired power plant located in Khánh Hòa Province, Vietnam. The plant began commercial operations in January 2024 and operates under a 25-year power purchase agreement with Vietnam Electricity (EVN).

With an annual output of about 8.5 billion kilowatt-hours, Van Phong 1 contributes around 4% of Vietnam’s total power generation and is the largest foreign-invested power plant in the Van Phong Special Economic Zone.

AboitizPower said the acquisition aligns with its long-term strategy to maintain a balanced mix of energy technologies that ensure reliable, affordable, and sustainable power. The company emphasized that the investment complements its growing renewable energy portfolio and supports its goal of achieving a just and sustainable energy transition.

The transaction is subject to regulatory approvals and customary closing conditions.

How do you think AboitizPower’s first overseas venture could influence the company’s regional growth and energy transition strategy?

Follow Power Philippines on Facebook and LinkedIn or join our Viber community for more updates.