ABOITIZ Power Corp. (AboitizPower) is set to acquire a 25% stake in Van Phong Power Company Limited (VPCL), operator of a 1,320-megawatt (MW) coal-fired power plant in Vietnam, from Japan’s Sumitomo Corp. for $220 million (around P12.9 billion).
In a regulatory filing on Thursday, AboitizPower said this marks its first significant investment outside the Philippines.
The Van Phong plant, located in Khánh Hòa Province, began commercial operations in January 2024 and delivers roughly 8.5 billion kilowatt-hours of electricity annually to Vietnam’s national grid.
It operates under a 25-year power purchase agreement with state-owned utility Vietnam Electricity and is the largest foreign-invested power plant in the Van Phong Special Economic Zone.
AboitizPower said the investment aligns with its strategy to maintain a “well-balanced portfolio of energy technologies” while pursuing renewable energy initiatives.
“This investment is in parallel with our renewable investment program and is aligned with our aspiration to ensure a balanced long-term energy transition, contributing to reliable and affordable energy systems,” the company said.
The completion of the transaction remains subject to regulatory approvals.
Sumitomo, a diversified Japanese conglomerate, is engaged in sectors including metals, automotive, infrastructure, real estate, digital media, chemicals, and energy transformation.
AboitizPower serves as the Aboitiz group’s arm for power generation, distribution, and retail electricity, as well as related energy solutions.
The company aims to expand its total attributable net sellable capacity to 9.2 gigawatts by 2030, maintaining a balance between renewable and thermal energy.
For the nine months ending September, AboitizPower reported a 15% decline in core net income, reflecting full-year depreciation and interest expenses for its 1,336-MW GNPower Dinginin Ltd. Co. coal plant in Bataan.
As of the first half of 2025, AboitizPower is the country’s leading power generator, holding a 23.86% share of the national grid, according to the Energy Regulatory Commission.
On Thursday, shares in the company fell 0.24% or 10 centavos, closing at P40.90 apiece. — Sheldeen Joy Talavera
