Utility seeks $666.8 mln as power shortage looms

The Electricity of Vietnam Group Monday asked the government for VND13 trillion (US$666.8 million) so that it can operate oil-fueled thermal plants to overcome the serious power shortage expected this year.

This will help generate around 3.8 billion kilowatts hour (kWh) to meet the demand that is expected to rise by 18.3 percent to 56.14 billion kWh in the upcoming six-month dry season.

While there was a shortfall of 1 billion kWh last year, it is likely to rise to 3 billion-4 billion kWh this year, Dao Van Hung, EVN chairman, said at a media briefing Monday.

Nguyen Phuc Vinh, general director of the Northern Power Corp, an EVN subsidiary, said his firm needs at least VND5.4 trillion ($277.6 million) to buy oil during the coming dry season.

Since banks will not lend since it is unprofitable, EVN needs the government’s support, he added.

Duong Quang Thanh, deputy director general of EVN, said water levels in hydroelectric reservoirs are much lower than usual. Besides, they have to supply 2.7 billion cubic meters for the winter-spring rice crop in the north, he said.

They need an additional 12 billion cubic meters of water to produce the expected 3 billion kWh shortfall, he explained.

The Hoa Binh Plant’s reservoir will dry out by March and so will several others, he said.

Given this, EVN has planned measures to cope with the dry season and the rest of the year, he said.

They include rational use of water in reservoirs to serve electricity generation, people’s daily use, and agriculture; flexible use of the national electricity grid; and reduction of maintenance time of the 500kV north–south transmission line.

EVN will also speed up work on new plants, maximize the use of coal-fired plants, and negotiate to buy more electricity from China, Thanh said.

Power purchase from the neighboring country rose 32 percent last year.

“We are in a tight corner,” EVN officials admitted to the media.

Another solution, Vinh said, is to cut supply to the steel and cement industries by 30 percent.

But he did not mention the loss the two industries could suffer in case of power cuts.

EVN also sought a loan of VND15 trillion from the Vietnam Social Insurance Fund. It hopes to make a $1 billion government-backed bond issue on the international market this year.-Tuoi Tre

Tags: Vietnam electricity, Vietnam energy, Vietnam power shortage