EVN excellently demonstrates its role and responsibility of state-owned enterprises when suffering large losses so that remote islands can have stable electricity with low prices

Vietnam Electricity (EVN) currently takes over the operation management and ensures the power supply in 11/12 island districts, making an important contribution to promoting the economic development of the sea and islands and especially contributing to maintaining territorial sovereignty, ensuring national security and defense. To fulfill that responsibility, EVN has overcome many difficulties during the construction journey of the power system; challenges in the management and operation of the power grid, and especially in the implementation of electricity price compensation for the islands, etc.

Lighting up the remote islands – The sacred mission of Electricians

Performing tasks assigned by the Party and State, Vietnam Electricity has made great efforts to bring electricity to the sea and islands. Starting from Cat Hai Island (in 1991) to Con Co Island (August 2017), Vietnam Electricity's journey to bring electricity to the sea and islands has not stopped developing. As a result, 11/12 island districts and most of the island communes have been directly power managed, operated, and sold by Vietnam Electricity.

On the journey to light up the country's sea and islands, it is impossible not to mention Truong Sa - a steady outpost of the country in the East Sea, a strategic space especially important for national defense and security. Since August 1, 2017, Vietnam Electricity has taken over and managed the entire clean energy and lighting system in the Truong Sa archipelago. Together with Truong Sa island district, EVN took over the power supply management for 14 DK1 rigs (in Ba Ria - Vung Tau province) from the Navy Command.

Or for Phu Quoc (Kien Giang province), the journey to bring electricity to the island is also a great achievement of Vietnam's power sector. In February 2014, the longest 110kV undersea cable in Southeast Asia was built in Vietnam, bringing electricity from Ha Tien to "Pearl Island" of Phu Quoc.

Kien Binh - Phu Quoc 220kV transmission line is the longest 220kV overhead transmission line in Southeast Asia. Image source: EVNEIC

Another mark is that in October 2022, the project of Kien Binh - Phu Quoc 220kV sea-crossing transmission line was energized and operated at a 110kV voltage level, phase 1. This is the longest 220kV overhead transmission line project in Southeast Asia.

For island districts and communes near the shore, after receiving the electricity selling, EVN has implemented a series of projects to bring electricity from the national grid to the island districts and communes to meet the needs of socio-economic development and national security. By 2020, the total investment capital for the projects reached more than VND 7,900 billion.

After receiving and selling electricity directly on the island districts, from no electricity, or only got electricity for about 5-9 hours a day, the island districts were supplied power 24/24h by EVN with stable quality, thereby making an extremely important contribution to the construction and protection of island border sovereignty, promoting rural modernization, and awakening the economic potential of the sea and islands.

On some islands, the average electricity price sold by EVN is only 1/10 of electricity production and business cost

In fact, the electricity production and business cost in many island districts and communes is higher than the price that EVN sells to people. Every year, Vietnam Electricity directly suffers the price compensation for electricity production and business cost in the islands. In 2022 alone, EVN and its units have suffered a huge amount of price compensation for electricity production and business costs in the island districts of Phu Quy (Binh Thuan province); Con Dao (Ba Ria - Vung Tau province); Truong Sa (Khanh Hoa province); Bach Long Vi island (Hai Phong city); Be island (Ly Son island district, Quang Nam province), and Khanh Hoa and Con Co island communes (Quang Tri province).

  

EVN ensures power supply at Ly Son island, promoting economic development of sea and islands, contributing to ensuring national security (photo taken in 2019). Image source: EVNEIC

In which, for example in 2022, in Con Co (Quang Tri), the electricity production and business cost is more than VND 13,219/kWh, while the average selling price is more than VND 1,964/kWh, EVN compensates for more than VND 11,200/kWh electricity here. In Phu Quy island district (Binh Thuan province), the electricity production and business cost is "more breathable", but still reaches more than VND 7,691/kWh, much higher than the average selling price of more than VND 2,001/kWh by EVN.

There are places like Bich Dam island (Khanh Hoa), the average selling price of EVN to people in 2022 is only about VND 1,703/kWh, not yet reaching 1/10 of the electricity production and business cost (electricity cost is about VND 18,081/kWh). The situation is similar in Vung Ngan island (Khanh Hoa), people only pay an average of about VND 1,688/kWh, while EVN's production and business costs are about VND 17,232/kWh, 10.2 times higher than the average selling price of electricity! Thus, for each kWh of electricity had been sold, EVN has to suffer the electricity price compensation so that the army and people on remote islands can enjoy the same electricity prices as in the mainland. It is a high effort of EVN to fulfill the political task of ensuring power supply for all regions of the country, contributing to ensuring national energy security.

In addition to price compensation, EVN also has to make great efforts to ensure a reliable, safe, and continuous power supply on the islands. Because the power grid system here is affected by the salty environment, rainstorms, etc., the equipment’s lifespan is much shorter than that of normal conditions. The Power sector must constantly invest in and maintain the power grid; therefore, the management, operation, and repair costs of the power grids in the islands have also increased. Not to mention, in order to perform tasks in remote islands, employees of the Power sector also have to overcome the challenges of being away from their families, their units, etc. to complete their tasks.

In parallel with the task of ensuring power supply, EVN with the coordination of the Navy Command has organized working groups to visit, support, and give gifts to encourage troops and people on the Truong Sa archipelago and the DK1 rig. Image source: EVNEIC

Although there are still difficulties in capital mobilization, price compensation, and challenges due to operating the power system far from the mainland, EVN has always shown the highest responsibility, determined to successfully fulfill this responsibility. From the joint efforts of EVN's employees, the electricity bright on the outpost islands promoting economic development of the sea and islands, ensuring people's livelihoods; and especially, making an important contribution to national defense and security, affirming the country's sovereignty over the sacred seas and islands.


  • 21/04/2023 04:46
  • evn.com.vn
  • 83