Power crisis still a reality

Power shortages continue to be a reality despite a recent power price hike of 15.28 per cent.

The domestic power sector will produce and import 115 billion kWh of power in 2011, including 54.058 billion kWh in the dry season alone, according to 2011 power sources plan approved by the Ministry of Industry and Trade (MoIT) in January 2011. Vietnam produced and imported a total 97.25 billion kWh in 2010.

Of the approved power structure, imported power from China will be around 4.5 billion kWh, hydropower 37.35 billion kWh, gas-fired thermo-power 44.186 billion kWh, coal-burned thermo-power 24.721 billion kWh and oil-fuelled thermo-power 4.722 billion kWh.

Though the power structure has maximally utilised available power resources, MoIT warns the system would lack around 2 billion kWh in 2011 dry season.

There are technical breakdowns at the gas-fired Phu My 3 power plant which results in a loss of around 15 million kWh to the system and needs three months to recover the problem. Meanwhile, water level at hydropower plants remains low, casting adverse impacts on power production.

Anyhow, recent power price hike and management agencies’ intention to set the power price based on market rules in the near future are expected to help the power sector woo investors. Over 10 projects by foreign investors with a total designed capacity of 20,000 megawatts are seeking power sector investment opportunities.

Deputy minister of Industry and Trade Hoang Quoc Vuong recently told VIR that recent power price hike would help facilitate power price negotiations between the power sector and producers as it would narrow the gap between the selling price wanted by power producers and what would have been accepted by the power sector.

Besides, to address power shortages in the short run the power sector must advance efforts to facilitate power projects’ implementation to boost the national power system capacity as many projects with a total combined capacity of several thousands megawatts currently face delays or are in repair.

Industry specialists said the power sector needed to work on long-term plans to lure investors into power resources development in order to meet future development requirements especially when Vietnam seeks to become modern-oriented industrialised nation by 2020. – VIR

Tags: Vietnam electricity, Vietnam energy, Vietnam power shortage