Located in Mo Duc District, the 19.2 megawatt project has a total investment of nearly VND900 billion (US$41 million).

It will be the first ‘green' power source connected to the national grid when it comes into operation in July next year.

Speaking at the ground-breaking ceremony for the project, deputy Prime Minister Hoang Trung Hai said: "The project is very significant. It paves the way for power development in Viet Nam and the use of renewable energy."

"It's also a special project using investment capital from private companies, but not from the State budget."

It will be an example of green growth for a large coastal area in the central province.

"We believe many investors will start ‘green' energy projects in the region in the future. We expect that renewable energy projects will eventually contribute considerable funds to the State budget," said Huynh Kim Lap, chairman of Thien Tan joint-stock company, which is investing in the project.

When finished, the power station, which covers 24ha, will supply 28 million kilowatts an hour for the national power network.