Mr. Le Van Luc
Reporter: Could you please tell us about the situation of coal fired thermal power projects over the recent time?
Mr. Le Van Luc: Over the last time, no more thermal power projects have been added to the master plan. On the other hand, some projects already listed in the 7th Master Plan VII, which should have been implemented, have been delayed due to obstacles related to construction sites caused by not having consensus from local authorities.
- In your opinion, what role does coal-fired thermal power play in ensuring national energy security between now and 2030?
It will be definitely a key role, because coal fired thermal power is an effective and the highest efficient power generation source among the existing energy sources of Vietnam. If 1,000MW of coal fired thermal power can generate 7 billion kWh per year, the maximum generation output of the same hydropower capacity is only 4 billion kWh per year; and the generation output of the same renewable energy capacity such as wind power and solar power is about 2 billion kWh per year. Obviously, the efficiency of coal fired thermal power is much higher than other energy sources.
Currently, coal fired thermal power generation supplies about 38% of the country's electricity output. According to calculations, by 2030 coal fired thermal power generation will account for 53% of the electricity output of the whole system, because hydropower has been fully exploited, gas fired thermal power has a certain shortcoming due to high prices and renewable energy sources, which have been prioritized for development now, are limited due to its intermittent nature. Therefore, in the coming years, coal fired thermal power generation will keep representing a large proportion due to its reasonable price and high efficiency, meeting the energy demand for socio-economic development of the country.
- The public is still afraid to use coal fired thermal power because it is supposed that coal fired thermal power pollutes the environment. How is your view on this issue?
When building any power source, there will be 2 sides, gain and loss. We must choose a reasonable and economical option. As for coal fired thermal power, when burning millions of tons of coal per year for electricity generation, there are certainly impacts on the environment. However, with advanced technology today, there are available solutions for Vietnam to mitigate environmental impacts, ensuring gas emissions to the environment under the permitted standard of Vietnam standards, as well as international ones.
When investing in coal fired thermal power plants, in feasibility studies, investors must develop environmental impact assessment reports which shall meet all prescribed requirements before construction permits can be granted. The investment in technology for every coal fired thermal power plant is considered right from the investment stage and continuously supplemented with new technology, fully meeting all environmental requirements in accordance with regulations.
- One of the difficulties for coal fired thermal power is the lack of coal supply for electricity production. Does the Ministry of Industry and Trade have a sustainable solution to solve this problem?
According to the plan, by 2030, the coal demand for electricity generation will be quite large, meanwhile domestic coal can supply only about 40 million tons year. By 2030, Vietnam will need 130 - 140 million tons of coal for electricity generation. Thus, about 90 - 100 million tons of coal will be imported per year. According to the latest information, the world coal reserve can fully meet the demand for thermal power development in several hundred years. We can be assured of the coal supply for coal fired thermal power plants.
Previously, the Government assigned the Vietnam Coal and Mineral Industries Group (Vinacomin) and the Northeast Corporation to be the focal points to exploit and supply coal for thermal power plants and for the economy, therefore shortages of coal have happened sometimes. Currently, the Government has allowed coal fired thermal power plants to take the initiative in looking for markets and importing coal through Vinacomin and the Northeast Corporation or through commercial companies licensed by the Government. This has helped power plants become more proactive in finding coal sources.
- The responsibility for national energy security currently rests with large state-owned energy corporations such as EVN, PVN, Vinacomin, in which EVN plays a leading role. So, do you think it is necessary to open for socializing investment in thermal power sources?
The socialization of investment in power generation projects is very necessary because according to the revised 7th Master Plan, the investment capital needs for power generation projects is very large. From now to 2030, Vietnam will need about USD 140 - 150 billion. Therefore, the Government's policy is to promote socialization of investment in power generation projects and power transmission line projects.
In reality, for many years, the Government has introduced policies to attract investment capital in thermal power projects under BOT scheme. The construction of power plants under this scheme can mobilize capital sources from abroad. However, foreign investors always have strict binding conditions on capital recovery, require compliance with stringent regulations of international financial institutions, and ask the Government to provide very specific guarantees over such conditions as foreign currency conversion method, operation conditions, maximum power output, for at least one year, etc. All these constraints have made the Government’s guarantee a lot difficult.
- In your opinion, what role does communication play in directing public opinion about developing coal fired thermal power projects?
Communication plays a very important role in disseminating to all strata of society the policy of socializing the development of power sources, especially coal fired thermal power plants.
Recently, there have been some inaccurate and groundless information on coal fired thermal power, which leads to the disagreement of some provinces about this energy source. However, it is known that there are more than 20 coal fired thermal power plants in Vietnam which are operating efficiently and not causing environmental pollution. In provinces where coal thermal power plants are located such as Ninh Binh, Quang Ninh, Pha Lai, Thai Nguyen, etc. local people are living well, many of these areas are densely populated, becoming crowded residential areas, new towns and cities, etc.
In my opinion, the media should have an objective, accurate and scientific view of coal fired thermal power.
Thank you Sir!