Efforts to seek solutions to increase the amount of coal
Recently, hot weather, drought, and lack of water have seriously affected the hydropower reservoirs. Particularly in April and early May, the water inflow to the reservoirs is only below 50% of the annual average level, some reach 20% of the average level, causing a serious shortage of water sources for hydropower reservoirs. By the end of April, the remaining converted electricity output in hydropower reservoirs in the whole system was 1.6 billion kWh lower than the plan approved by the Ministry of Industry and Trade (MOIT) and 4.1 billion kWh lower than that of the same period last year of 2022.
Meanwhile, the power demand is tending to increase, especially in the peak of the hot season (May, June, and July). Coal and gas thermal power plants, etc., have been put under high pressure by the power supply.
Total power production from coal fuel in the first 4 months of 2023 reached 40.06 billion kWh (accounting for 46.53% of total electricity production and import of the whole system). However, the supply of fuel (coal, oil, gas) for power production does not meet the actual operational requirements. To solve the problem, at the meeting among the senior leaders of EVN and TKV, Northeast Corporation on May 9, EVN proposed TKV and Northeast Corporation supply coal based on the requirements of EVN in accordance with the signed contract, and at the same time, seeking for solutions to supplement the amount of coal for power production in consistence with the mobilization demand of the system in the coming months. One of these solutions is that EVN proposed TKV and Northeast Corporation reduce coal supply to other load households, but increase the amount of coal supplied for power production in the second quarter; Other additional households will be supplied with coal as compensation in the last months of the year.
Then, on May 19, EVN sent an official letter to the Investor of Duyen Hai 2 BOT thermal power plant project, Janakuasa Vietnam Co., Ltd. (JVL), and the EPC contractor of the project, China Huadian Engineering, about borrowing a coal lot of 100,000 tons of Duyen Hai 2 Thermal Power Plant. This coal amount is borrowed by EVN to be used for Duyen Hai 3 Thermal Power Plant (under Power Generation Corporation 1) to produce electricity, with the goal of ensuring power supply in the current urgent situation.
O Mon 1 Thermal Power Plant uses oil fuel to generate power, meeting the high requirements of the power system. Photo: M. Luong
Proposing to give up gas for power production
It is forecasted that the operation of the power system in the hot summer months (May, June, and July) will be very difficult, especially since the northern power system has to face the situation of not being able to meet the demand for electricity. The peak load of the system with the maximum shortfall capacity ranges from 1,600MW to 4,900MW. If the situation continues to be unfavorable as that in the past time, the amount of water entering the hydropower reservoirs and the supply of coal/oil/gas fuel for power plants does not improve, the power system will fall into critical situations, greatly affecting the power supply for production and people's daily life.
In order to have a gas source for power production, on May 16, EVN sent an official letter to Vietnam Oil and Gas Group, PetroVietnam Fertilizer and Chemical Corporation, and Ca Mau Petroleum Fertilizer Joint Stock Company to make a proposal to prioritize gas for power generation.
In fact, the Southeast gas source is on a sharp decline in recent years, the amount of gas supplied for power production is only about 13.5-14 million m3/day on average, while the gas demand for operating the maximum capacity of gas turbine plants in the Southeast region is over 21 million m3/day. The amount of gas in the Southwest region for power production is only about 4 million m3 per day on average, while the gas demand for maximum operation of Ca Mau gas turbine plants is about 6 million m3 per day.
Facing the above urgent situation, in order to ensure sufficient power supply for socio-economic development and people's daily activities, EVN recommends Vietnam Oil and Gas Group and PetroVietnam Fertilizer and Chemical Corporation, and Ca Mau Petroleum Fertilizer Joint Stock Company support and prioritize gas for power production in the two peak months of the dry season (May and June). In particular, in the upcoming time, consideration is taken to stop the entire Ca Mau and Phu My fertilizer plants to prioritize gas for power production from now until the end of May.
Addition of power supply
EVN has negotiated and signed power purchase and sale contracts with Thai Binh 2 Thermal Power Plant, Song Lo 7 Hydropower Plant, Nam Cum 3 Hydropower Plant, and Van Phong 1 BOT Power Plant to supplement power to the system. In the Southern region, in the past time, oil-fired thermal power plants (power sources are expensive) had to be restarted to ensure power supply. In particular, oil-fired power plants in Thu Duc, O Mon, Can Tho and Ca Mau have been operating and generating large output on the grid.
For transitional renewable energy projects, projects that have completed construction investment and completed legal documents as per regulations, MOIT directs EVN and investors to negotiate, and agree on a temporary price in compliance with the Government's regulations. According to the document of MOIT dated May 18, 2023, EVN and the investor of a number of transitional power plants such as Nam Binh 1, Vien An, Hung Hai Gia Lai, Hanbaram, Phu My 1, Phu My 3, Hiep Thach and Huong Hiep 1 negotiated and agreed on the price in accordance with the law. This is the basis for these projects to promptly operate and generate electricity on the grid.
Along with that, EVN directs its member units to accelerate the progress of projects to strengthen North-Central transmission capacity; works for connection and release of hydropower sources in the Northwest and renewable energy sources in the Central and Central Highlands regions; projects to enhance the transmission capacity and import electricity from China and Laos.
The Lao hydropower plants including Nam Kong 2 (66MW) and Nam Kong 3 (54MW) - a power purchase agreement signed with EVN previously - have successfully energized and connected to the grid. On May 15, 2023, both plants completed connecting to the grid and are carrying out testing items on the Vietnamese grid. It is expected that both plants will operate commercially in May 2023, supplementing power sources for Vietnam during the hot season.
In addition, EVN has just sent a report to MOIT to soon issue guidance on the development of rooftop solar power not generating power on the grid (zero export) to implement and reduce difficulties in power supply. Power Planning VIII also clearly states: prioritize and formulate breakthrough policies to promote the development of solar power on the roofs of people and construction sites, especially in areas at risk of power shortage such as the North and self-produced and self-used solar power. From now to 2030, the capacity of these power sources is estimated to increase by 2,600MW. This type of power source is prioritized for development without capacity limitation, provided it is reasonably priced and makes use of the existing power grid, but not having to be upgraded.
Strengthen propaganda to save electricity
EVN has also developed a plan to implement the DR program, promoting the implementation of non-commercial voluntary DR in the months of May, June, July, and August on the basis of the distribution of available capacity of the Center of the National Load Dispatch System. Power companies plan to supply power every month, especially in the months of May, June, July, and August, and notify big customers in advance to proactively adjust production activities.
Strengthen propaganda on electricity saving to each individual. Photo: VCP
By May 19, the entire Southern Power Corporation had 6,521 customers with electricity consumption of from 1 million kWh/year registered to participate in the DR program. As for the Northern Electricity Corporation, as of mid-May, more than 3,700 northern enterprises were committed to saving electricity. These enterprises have signed agreements with Power units for electricity-saving during the peak times of the power system, reasonably adjusting air-conditioners, limiting the simultaneous use of many different electrical appliances of high capacities, and so on.