Vietnam starts construction of $296 million solar power project

The Dau Tieng 5 solar power plant in Tay Ninh Province will have an installed capacity of 450 megawatts and is expected to generate about 808 gigawatt-hours of electricity a year when it begins operations in December 2027. 

The project is being developed by DT5.1 Energy JSC, a subsidiary of Vietnamese conglomerate Xuan Cau Holdings. It will be built on semi-submerged land around the Dau Tieng Reservoir that was previously used mainly for cassava cultivation.

Xuan Cau Holdings Chairman To Dung said the plant was among the first projects to be implemented under Vietnam’s direct power purchase agreement (DPPA) mechanism, which allows renewable energy producers to sell electricity directly to large consumers.

“The project not only benefits power producers and large electricity users, but also supports the development of a more competitive electricity market,” he said.

Zhou Jiayi, chairman of PowerChina’s Asia-Pacific regional headquarters and a representative of the engineering, procurement and construction consortium, said contractors would prioritize construction quality, safety and environmental protection.

The consortium would take measures to limit the project’s impact on water resources and the ecosystem around Dau Tieng Reservoir, Zhou said.

Le Van Han, deputy secretary of the Tay Ninh Party Committee and chairman of the provincial People's Committee, said Dau Tieng 5 was the province’s largest power project by installed capacity.

It is expected to contribute to national energy security, support Vietnam’s transition toward cleaner and more sustainable energy sources, and further unlock the potential of the semi-submerged area surrounding Dau Tieng Reservoir.