The risk of power shortage is present
At the Conference for summarizing the work of 2018 organized by EVN, Deputy Prime Minister Trinh Dinh Dung identified: “The risk of local power shortage in the coming years is obvious if we do not come up with solutions to develop power sources and grids”.
Demand on power for socio-economic development and people’s living is continuously increasing, exceeding the supply capacity. Currently, the total power source capacity of Vietnam is about 48,000MW. With a growth rate in power output of about 10%/year (according to adjusted Power Master Plan VII) by 2025, the expected power demand of the National power system will be 90,000MW, doubling the current one. By 2030, it will increase to about 130,000MW.
Meanwhile, hydropower is currently meeting about 40% of the demand, but its potential has been almost exploited, being difficult for further development. Other sources of alternative power are also facing many difficulties as Vietnam has temporarily suspended the implementation of nuclear power projects, many thermal power projects have been behind progress, renewable energy sources have currently been unable to develop on a large scale because of high cost, failure to meet the requirements of transmission system. The borrowing of foreign capital for the development of power sources also faces many difficulties due to obstacles by Governmental guarantee procedures, etc.
Another big challenge for the Power sector is the imbalance between supply and demand of each area and region. While the South uses more than 50% of the total power demand (this figure of the North is nearly 40%, the Central is nearly 10%), currently, the power source is mainly concentrated in the North and Central regions (nearly 60%), the South can only generate less than 40%.
Power transmission system between areas and regions has not met the requirements. The construction of “backbone” transmission lines and their branches has been slow, not consistent with the required progress of projects on source development. The process of negotiation on importing power from foreign countries has also faced many difficulties.
EVN readily prepared scenarios to ensure power in 2019
Which solution to ke taken?
In response to the above-mentioned challenges, implementing the Government’s directive on “preventing power shortage for production and people’s living” (Resolution No. 01/NQ-CP, dated 1st January 2019), Chairman of EVN’s Member Council Duong Quang Thanh requested the whole Group to urgently implement its key tasks to be on schedule.
Accordingly, it is required to ensure ready operation to reach the designed capacity of generator units, particularly coal-fired power plants must ensure their uninterrupted and stable operation in the dry season; full preparation of backup supplies and equipment for maintenance and repair; tightening operation disciplines, not letting occurrence of big incidents. Domestic and foreign coal, gas sources for power generation shall be balanced, particularly in the dry season of 2019. It is required to continue working and signing contracts with coal/gas suppliers (Vietnam National Coal - Mineral Industries Holding Corporation Limited (TKV), Dong Bac Corporation, PetroVietnam Gas Joint Stock Corporation) to solve the problem of primary fuel for power plants. In case of insufficient supply of domestic coal, the units should take the initiative in or coordinate with TKV and Dong Bac Corporation to import coal for power generation.
Vietnam Electricity will closely coordinate with local authorities in saving power; take solutions for load regulation, ensuring the stability of the power system; ensure the progress of invested works for power source and grids, complete negotiations on signing power purchase contracts with Laos and China in Quarter I of 2019.
Additionally, the Group will promote applying scientific and technological achievements in order to improve its production and business efficiency and labor productivity. The Group will continue implementing practical schemes, applying such new and modern technologies as BigData, Cloud, AI, IoT, Blockchain, digital technology, etc.
Along with determining to make breakthrough in investment in power source development and transmission system as the leading requirement for avoiding power shortage in any situation, EVN will actively advise the Ministry of Industry and Trade, the Government to adjust and supplement Power Master Plan VII; redefine the structure of power sources, transmission systems in each period, area and region; safely operate the power system; reduce power loss; continue improving customer service quality, etc.
VN - Some key targets in 2019:
- Generation and purchase power output: 232.5 billion kWh, increasing by 9.2% compared to that of 2018.
- Reliability of power supply: Reduce SAIDI to 400 minutes, reach targets in 1 year earlier than the planned schedule of 5 years
- Power loss rate: 6.7%, decreasing by 0.2% compared to 2018 and strive to reduce to 6.5%
- Access-to-electricity index: Rank 24/190 countries, economies in the world and remain its position in ASEAN 4.
- Labour productivity: Increase to over 10%
- Preserve and develop capital source, strive for profitable business
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