EVN Must Ensure Stable Power Supply for Economy

The Vietnamese Ministry of Industry and Trade will meet with the state-owned Electricity of Vietnam Group (EVN) during this week to request the group to ensure stable power supply for the domestic economy.

The move follows recent complaints by a large number of producers nationwide about unexpected blackouts, affecting their production.

Nguyen Huu Thuan, chairman of the Vietnam Leather and Footwear Association (LEFASO VN) said many enterprises had to raise their production capacity to fulfill their orders in the first quarter of this year amid power cuts.

Companies, particularly seven steel producers, in the southern province of Ba Ria-Vung Tau are moaning about power shortage and unexpected blackouts for up to four days per week, said an official of the provincial Department of Industry and Trade.

The Electricity Regulatory Authority of Vietnam (ERAV) has cut between 18% and 20% of power supply and local producers incurred blackouts twice per week and households in rural areas all week long, which is much higher than EVN’s announcement of 6%.

Recently, experts said EVN have yet met the increasing national power demand though it has operated an additional five power plants with a combined capacity 1,500 MW since 2000.

The group always attributes its capital shortfalls to the stagnant construction of many of its power projects; however, experts said many small-sized hydropower plants across Vietnam are facing difficulties in electricity sales as power transmission grids to connect electricity to the national grid have not yet been built.

Also, the Southeast Asian country has not yet made full use of all available power sources as EVN has not yet signed power purchase agreements with a lot of operational plants.

Vietnam is forecast to face a power shortage of one billion kWh this year, including 600 million kWh between April and June.

Tags: Vietnam electricity, Vietnam energy, Vietnam power shortage