Rural electrification: EVN sets social security targets above corporate interests

EVN has electrified up to 99.98% of rural communes and 98.83% of rural households in Vietnam, after ten years of executing the Resolution No. 7 of the 10th Central Committee of the Party (2008 - 2017). The power grid has been constantly rehabilitated and synchronously expanded, securing sufficient electricity supply for agricultural production and residential uses of the people in rural areas all over the country.

Efficiently utilizing financial resources

Over the past 10 years, holding the key role in undertaking the national energy security, EVN has made great efforts to mobilize and efficiently use capital resources for investing in the power system, serving production activities and residential purposes of people.

EVN has raised nearly USD 2 billion from ODA loans financed by the World Bank (WB), Asian Development Bank (ADB), French Development Agency (AFD), German Development Bank (KfW), Japan International Cooperation Agency (JICA), etc. These ODA loans have been the main financial resources for development, rehabilitation, upgrading and expansion of rural power grids in Vietnam during this period, serving nearly 2 million rural households.

In addition, EVN has effectively utilized the allocated state budget and its own capital source. A lot of attentions have been paid to  rural electrification projects in remote areas, especially difficult areas and border areas in Son La, Dien Bien, Lai Chau, Bac Can, Nghe An, Lang Son, Khanh Hoa, Tra Vinh, Soc Trang, Hau Giang, Ca Mau, Kien Giang provinces with a total budget of more than VND 5,500 billion. The national power grid has been connected to 369 rural communes and nearly 400,000 rural households those having no access to electricity yet.

EVN has also attached importance to investment in developing power systems in island districts, island communes in order to meet the demand for marine economic development, environmental protection and especially contributing to defending the sovereignty and security of the sea.

In particular, EVN has invested in expanding the national grids by installing overhead lines and submarine power cables connecting to island districts such as Co To  (Quang Ninh), Phu Quoc, Kien Hai (Kien Giang), Ly Son (Quang Ngai) and commune islands such as Cu Lao Cham (Quang Nam), Lai Son, Hon Nghe, Son Hai, Hon Tre (Kien Giang province), Quan Lan, Minh Chau, Cai Chien, Ban Sen, Ngoc Vung and Thang Loi (Quang Ninh province) , Thanh An (Ho Chi Minh city), etc. with a total investment cost of more than VND 6,100 billion, supplying electricity to more than 140,000 households on the islands.

In 2017, EVN electrified up to 98.83% of rural households across the country – Photo:  Thanh Trung

Taking over rural power grids

Together with the investment in constructing and developing power grids in rural areas, EVN has stepped up the taking over of rural low voltage power grids from local power management organizations. Thereby the people can buy electricity directly from EVN at the electricity tariff regulated by the Government, with a quality, safe and stable electricity supply.

By the end of 2017, EVN had taken over the rural low voltage power grids to sell electricity directly to nearly 6,000 communes and more than 6.2 million households, and rehabilitated the taken – over power grids with a total cost of about VND 8,000 billion.

In parallel with the control of power grids and power sale on the mainland, EVN has taken over, managed power grids and take charge of electricity supply in 11/12 island districts (except for Paracel islands), ensuring 24/24h continuous and stable power supply, meeting the demand for electricity of the people on the islands, contributing to the protection of sea sovereignty, political and social security.

Since the taking over of power grids for direct power sale, EVN has subsidized nearly VND 1,500 billion for island districts and island communes which have been using on-site diesel power generation sources with generation cost much higher than the electricity retail tariff applicable to households. EVN has set welfare interests and social security targets above corporate interests.

After a decade, the percentage of communes and households having access to electricity has increased from 97.0% and 93.4% in 2007 to 99.98% and 98.83% in 2017 respectively. The power sector has contributed significantly to changing the face of Vietnam rural areas.

EVN also sets a target that 100% of rural communes and most of rural households will have access to electricity by 2020, 100% of which will meet electricity related criteria No.4.

  • 24/04/2018 03:37