Basically meeting coal demand for power generation in 2022
EVN and Vinacomin signed a memorandum of cooperation to ensure the coal supply for power generation on April 23, 2022. The two parties have agreed to have regular collaboration in supplying coal to EVN's thermal power plants in 2022; cooperating in resolving arisen issues during the coal supply process; discussing, agreeing on relevant issues and jointly reporting to competent state management agencies on issues beyond their power.
At the meeting on August 9, EVN’s Vice President Ngo Son Hai presented that in the first 7 months of this year, the total volume of coal supplied by Vinacomin to EVN's thermal power plants was 10,093 million tons (counting only the volume of coal that has been imported into warehouses of power plants, not the coal in transportation and waiting for unloading), equivalent to 96.45% of the total contracted volume of 7 months.
After EVN and Vinacomin signed the cooperation memorandum, the coal supply situation improved. Specifically, Vinacomin supplied 4.93 million tons in the second quarter, equivalent to 104.4% of the contracted volume, 1.27 million tons higher than in the first quarter, basically meeting the operational requirements of the thermal power plants. However, the total volume of coal supplied in the second quarter was still lower than the volume committed in the minutes signed by the two parties (only 96.75%). The main reason is that in the first half of April, the supplied volume was low, especially for Duyen Hai 1 and Vinh Tan 2 thermal power plants. In addition, in June, since the thermal power plants in the North had a high inventory, they lowered their receipt of coal from Vinacomin.
It is expected that coal demand in the last 5 months of 2022 of EVN's thermal power plants is about 8.84 million tons. However, according to the updated data based on the latest dispatching mode of the National Load Dispatch Center (in August), due to the lower hydrological condition than expected, the total coal demand of these plants in the last 5 months of the year will increase to about 9 million tons.
According to EVN's assessment, the volume of supplied coal has basically met the operation needs of thermal power plants, except for Vinh Tan 2 Thermal Power Plant which is in short of about 400,000 tons. One of the current solutions to increase the additional volume of coal supply to Vinh Tan 2 Thermal Power Plant is to cut down the coal supply plan for thermal power plants in the North, which are having lower demand.
EVN has also requested Vinacomin to arrange coal supplies to ensure sufficient fuel for EVN’s electricity generation in 2022. In the long term, EVN directs Power Generation Corporation No.3 (EVNGENCO 3) to prepare sufficient coal for Vinh Tan 2 Thermal Power Plant operation in accordance with the Prime Minister's direction in Directive No. 29/CT-TTg, as well as relevant regulations.
Mr. Tran Dinh Nhan – EVN’s President and CEO spoke at the meeting
Preparing coal for 2023
Currently, the National Load Dispatch Center is developing a power system operation plan for 2023. It is expected that in the first 6 months of 2023, the demand for mobilizing coal-fired power plants will be much higher than in 2022, especially in the context that the hydrological situation in the last months of 2022 is not as favorable as expected. Therefore, in order to meet the electricity demand for socio-economic development and people's life in the dry season in 2023, thermal power plants must ensure their maximum availability, reliable and stable operation during the dry season and get sufficient coal ready for electricity generation.
From the end of 2022, EVN's thermal power plants need to store sufficient coal, even filling up coal storage warehouses to their maximum capacity, to minimize the risk of coal supply disruption due to coal price volatility, limited coal importing sources like in the early 2022 and having coal reserve in case of the Lunar New Year holiday leave of coal suppliers.
To secure coal for power generation, EVN has proposed that Vinacomin should strengthen their control of coal supply from upstream, ensure the quality of supplied coal, and enable EVN's thermal power plants to be more active in developing their plans of operation, adjusting boilers to be suitable for the quality of input coal.
EVN has also asked Vinacomine to prepare a production and business plan with an increased inventory by the end of 2022 to be ready to meet the higher coal demand of thermal power plants in the dry season of 2023.
Mr. Dang Thanh Hai – President and CEO of Vinacomin discussed with the leaders of EVN some difficulties in supplying coal to EVN's thermal power plants in the South, due to the current high transportation costs. The leaders of the two groups had an intensive discussion in order to remove the "knots" in the transportation process, and ensure the coal supply in accordance with the law.
On the side of EVN, Mr. Tran Dinh Nhan – President and CEO of EVN affirmed that he would inform the fuel demand of thermal power plants in 2023 in the earliest manner so that Vinacomin can have appropriate preparation plans. The President and CEO of EVN expressed his hope that the two parties would keep on closely coordinating, enhancing information exchange to constantly improve the cooperation efficiency, towards the common goal of ensuring national energy security.