Electricity demand in Vietnam has increased rapidly with economic development, and the average annual growth rate of national electricity consumption from 1996 to 2002 was 14.6%. Electricity demand in the southern region of Vietnam was expected to increase at a rate of 13.8% annually by 2010. In particular, electricity demand in the northeastern southern region and parts of the Central Highlands, the target areas of this project, was expected to increase at a rate of 16.0% annually. Therefore, there was an urgent need to alleviate the gap between electricity supply and demand in these regions.
In this cooperation, a 75 MW hydroelectric power plant was added to the existing Tak Mo hydroelectric power plant in the southeastern region of Vietnam, where the supply and demand of electricity is tight, thereby improving the power supply situation and contributing to revitalizing economic activities and improving the living environment of the residents.
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