Part 4: Supplying sufficient electricity for the country's industrialization and modernization needs (period 1995-2015)

EVN constantly innovated, played a leading role, ensured the security and the quality of the power supply, and provided sufficient electricity for the country's industrialization and modernization needs.

Period 1995-2005

On October 10, 1994, Vietnam Electricity Corporation (EVN) was established under Decision No. 562/QD-TTg of the Prime Minister based on reorganizing the electricity units under the Ministry of Energy. Mr. Thai Phung Ne was the first Chairman of the EVN Board of Management (from October 1994 to July 1998). Mr. Le Liem was the first President and CEO (from October 1994 to April 1998).

During this period, the Power sector implemented the master plans for power development in phases IV and V and achieved many significant achievements. Despite the difficulties in resources and financial balance, thanks to reasonable and effective solutions in capital mobilization, as well as strengthening construction investment management measures, EVN has constructed and put into operation many key power projects such as Ialy Hydropower Plant (720MW), expanded Can Tho 150MW Thermal Power Plant with 4 gas-turbine units, Ham Thuan-Da Mi Hydropower Plant (475MW), Pha Lai 2 Thermal Power Plant (600MW), and so on.

In particular, Phu My Power Center was inaugurated with 6 power plants with a total capacity of 3,859MW, twice as large as Hoa Binh Hydropower Plant. In which, EVN invested in the construction of Phu My 1, Phu My 2.1, Phu My 2.1 expansion, and Phu My 4 power plants; Phu My 3 and Phu My 2.2 power plants were BOT funded by foreign investors. These are important power projects marking the remarkable development of the Vietnam Power sector. At the same time, through participating in the construction of power projects, the power engineering consulting force in the industry has initially approached modern technology and been proactive in engineering consulting of gas-fired power plants.

In the 2001-2005 period alone, Vietnam Electricity Corporation continuously invested in a series of power projects with a total capital of about VND 90,000 billion, 2.05 times higher than the 1996-2000 period. The total power capacity put into operation increased by nearly 5,000MW.

The power grid system has strongly developed with the construction of the North-South 500kV circuit 2 ultra-high voltage power line and 500kV power lines from Ho Chi Minh City to the West, Thuong Tin-Quang Ninh, along with thousands of kilometers of 110-220kV lines and substations.

On October 23, 2005, the 500kV circuit 2 transmission line was inaugurated. The line has a total length of 1,600km, passing through 21 provinces and cities, including 4 sections: Phu Lam-Pleiku (544km), Pleiku-Doc Soi-Da Nang (296.6km), Da Nang-Ha Tinh (292.8km), and Ha Tinh-Nho Quan-Thuong Tin (364km).

Ultra-high voltage power line transmits electricity between North and South, improving power supply reliability and power quality for entire system. Source: Bui Tan Hien

The project is invested with a total value of more than VND 7,510 billion, the construction volume is up to 3.2 million m3 of excavation and filling of various soil and rock types, 269 thousand m3 of various concrete types, and 12.8 thousand tons of construction steel. More than 10,000 cadres, workers, and employees, more than 20,000 people at peak times, spread across all 4 sections of the project, rushed to work day and night. In April 2004, the Pleiku-Phu Lam 500kV line, 544km long, was energized. Four months later, the Doc Soi-Da Nang 500kV line, nearly 300km long, was energized, 4 months ahead of the Government's schedule. Then, on May 23, 2005, the Da Nang-Ha Tinh line, nearly 400km long, was energized, more than 1 month ahead of the Government's schedule. The Ha Tinh-Nho Quan-Thuong Tin circuit was energized on September 23, 2005, completing the construction of a giant project 1,600km long, passing through 21 provinces and cities, more than 1 month ahead of schedule.

Completing this transmission line has created two parallel ultrahigh voltage power lines across the country, transmitting electricity in and out between the two regions, improving the power supply safety and power quality for the entire system. Thereby, creating conditions for the rational exploitation of power sources nationwide, while creating the vital premise for later establishing the National Power Transmission Corporation.

Regarding power supply to rural, mountainous, and island areas: This is a period that records efforts to supply power to households in rural, remote, and isolated areas, with the rate of rural households accessing electricity continuously increasing rapidly each year. Specifically, in 2001 was 77.5%, in 2002 was 81.4%, in 2003 was 83.5%, and in 2004 was 88%.

This period also recorded remarkable success in the electrical engineering field with the successful research and engineering of transformers of 110-220kV voltage levels and self-repair of 500kV transformers.

Along with increasing investment in expanding the power source and grid systems, Vietnam Electricity Corporation has constantly innovated working methods, improving customer service quality. The corporation issued many customer service regulations, rules, and processes, trained staff to do business, simplified power supply procedures, etc.

Period 2006-2015

On June 22, 2006, the Prime Minister issued Decision No. 147/QD-TTg approving the Pilot project for the establishment of Vietnam Electricity Group and Decision No. 148/2006/QD-TTG on the establishment of the parent company—Vietnam Electricity Group. On December 17, 2006, Vietnam Electricity Group was officially launched as a state-owned economic group, playing a leading role in the power production, transmission, trading, and distribution, acting as the core for the Vietnam Power sector to rapidly, sustainably, competitively develop, and effectively integrate into the international economic.

In June 2012, the Ministry of Industry and Trade decided to establish 3 power generation corporations (GENCO 1, 2, 3) under EVN.

At the end of 2013, the Prime Minister issued Decree No. 205/2013/ND-CP on the Charter of organization and operation of Vietnam Electricity Group, in which the main business is power production, transmission, distribution, and trading; command and operation of the power production, transmission, distribution, and allocation system in the national power system; power import and export; etc.

This is the stage of promoting the restructuring of enterprises in EVN towards narrowing down the leads, increasing management decentralization, and improving corporate governance capacity. EVN has made important changes in the management model, operating mechanism, operational orientation, etc.

In addition, EVN continued to promote restructuring, prepared for the equitization of GENCOs, only held the monopoly on transmission, and held 100% state capital of large power plants, ensuring comprehensive efficiencies such as power supply, flood control, and irrigation. At the same time, properly implement the roadmap for building a competitive electricity market in the trend of international and regional economic integration.

EVN also focused on investing in developing power sources and grid systems, ensuring the most important task of meeting electricity demand for socio-economic development. During this period, the group deployed the construction of Son La Hydropower Plant, the power transmission system had also been continuously expanded with the inauguration of the 500kV circuit 3 transmission line (Pleiku-My Phuoc-Cau Bong). The electrical engineering field has also made significant progress with the successful manufacture of 500kV transformers.

Pleiku-My Phuoc-Cau Bong 500kV transmission line. Source: cosodulieu.evn.com.vn

Son La Hydropower Plant (2,400MW) is the largest hydropower plant in Southeast Asia, inaugurated on December 23, 2012, 3 years ahead of schedule according to the National Assembly Resolution. This is a miracle of the Vietnamese hydropower construction industry, thanks to promoting internal engineering capacity, self-construction, and boldly applying new technologies of the world, not only has the construction been fast but also ensures the best quality of the project. After completion, this important national project was awarded 3 awards by Asian Energy Magazine in 2013, including the “Gold Award for the fastest deployed plant of the Year”, “Hydropower Project of the Year Award”, and “Power Company of the Year Award”.

Up to this period, coal-fired thermal power centers have been located throughout the three regions of the country, of which three centers have been put into operation: Mong Duong (Quang Ninh) 2,280MW, Quang Ninh 1,200MW, and Hai Phong 1,200MW, and part of Nghi Son (Thanh Hoa) 600MW, Vung Ang (Ha Tinh) 1,245MW, Vinh Tan (Binh Thuan) 3,664MW, and Duyen Hai (Tra Vinh) 2,488MW. Construction of three centers has begun in Hai Duong, Long Phu (Soc Trang), and Song Hau. Among the 11 coal-fired thermal power centers, Vinh Tan Thermal Power Center has the largest total future capacity in Vietnam, with a deep-sea port that can accommodate 100,000 DWT ships transporting imported coal from abroad. In 2014 - 2015, Vinh Tan 2 (1,244MW) and Duyen Hai 1 (1,245MW) power plants were put into operation, promptly meeting the high load demand of the South at that time.

Regarding the transmission grid, 500kV and 220kV transmission lines were promptly constructed to transmit power from power centers such as Phu My, Vinh Tan, Duyen Hai, Mong Duong, etc., as well as large power plants, to the national grid. In particular, the construction of two loop-circuit systems of Phu My-Song May-Tan Dinh-Cau Bong-Phu Lam-Nha Be-Phu My 500kV power line in the Southern load center and the loop-circuit system of Son La-Hoa Binh-Nho Quan-Thuong Tin-Quang Ninh-Hiep Hoa-Son La 500kV power line in the Northern load center was completed; therefore, the power supply was continuously stable. Synchronizing with the 500kV transmission grid is developing the construction of 220kV transmission grids, by 2015, most provinces had at least one 220kV/110kV substation, and all districts had 110kV/22kV distribution substations or 110kV/35kV substations.

In addition to the successes from the efforts to supply power to households in rural and remote areas, this period also recorded EVN's breakthrough in completing projects to bring electricity to the islands. In 2013, Co To island district (Quang Ninh) was supplied with national grid electricity by submarine cables. In 2014, EVN continued to complete projects to supply national grid power by submarine cables to Phu Quoc and Ly Son island districts and received the power system of Con Dao and Kien Hai districts. In 2015, Kien Hai was officially supplied with national grid electricity.

We invite readers to continue following Part 5: EVN firmly enters the "digital age" (2016 to present period).

Translator: Thu Hường