EVN sets the target of total power loss rate of 6.7%
According to statistics, the total power loss rate of Vietnam Electricity (EVN) in 2018 is estimated at 6.9%, an improvement of 0.3% over the target and one year ahead of the schedule specified in the 5-year plan assigned by the Prime Minister.
"Lowering power loss rate to 7% is a great effort"
In 2019, EVN sets the target of total power loss rate of 6.7%, a reduction of 0.2% compared to 2018, and striving for 6.5%. Previously, this norm had been constantly improved as it was 7.94% in 2015, gradually decreasing to 7.57% and 7.24% in 2016 and 2017 respectively.
Prof. Academician Tran Dinh Long - Vice Chairman of Vietnam Electricity Association, said that the power loss rate of EVN has declined continuously during the recent 10 years and its down to 7% is a great effort and thus has turned Vietnam into the top countries with relatively low power loss rates.
The loss rate of a power system depends heavily on the capacity of investment in the grid. The better, the more modern the grid is invested, the lower the power loss rate is. At present a lot of countries have power loss rates of more or less 3%, improvement process of this figure normally takes long time and needs huge investment in modernization of the grid. Therefore, with the current condition of the power grid in Vietnam, especially the power loss rate of distribution network of less than 5%, this is a very encouraging achievement.
In reality, due to the terrain condition outspreading from the North to the South, scattered loads, with relatively low proportion of industrial customers and quite high proportion of residential customers, to achieve such a reduction of power loss rate in Vietnam is very challenging.
For that reason, there must be appropriate interest and investment in strengthening and developing power grids and a relatively long-term planning should be in place with the goal of reducing losses of the whole power grid, especially of the distribution grid. In addition to investment related solutions, proper operation measures also play a very important role.
In particular, from investment point of view, a master plan of power system development has been made available, however delays have been seen in the implementation of planned projects, which are caused by various reasons such as inadequate investment capital, delay in site clearance, or delay caused by contractors. Many projects are behind schedule, consequently investment progress doesn't catch up as loads grow.
A short-term increase in power losses is not exceptional
The power losses on EVN's existing power grid are mainly technical losses, which is a normal phenomenon happening on the power grid during the transmission and distribution process. These losses depend heavily on characteristics of the power system and investment volume in the system. Losses on the transmission grid will affect transmission costs and losses on the distribution network will affect distribution costs.
Mr. Tran Dinh Long said that it is possible that power losses will increase in some period because the grid investment plan is not balanced among periods, and this situation has been faced by many other countries.
The specialist also stressed that power losses should not be reduced at all costs but must be balanced, based on investment efficiency and stable power supply of the grid. The power grid should be invested in and developed with the aim of ensuring enough electricity for socio-economic development and serving people's life, increasing quality and reliability of electricity supply. In particular, the grid should be modernized, to be operated in a safe and reliable manner, which will contribute to reducing power losses.
In addition to efforts to reduce power losses, EVN also cut down production costs. In 2018 alone, EVN’s member organizations strictly executed the Decision on practicing saving and anti-wastefulness, saving production costs of VND 1,366 billion, approximately 7.5% of the targeted cost.
EVN has paid a lot of attention to the saving and optimization of its expenditures over the past few years, which has directly affected the electricity tariff imposed on end-users. The lower EVN’s expenditures are, the lower the electricity tariff is, and the more benefits end-users can gain.