Showing posts with label power. Show all posts
Showing posts with label power. Show all posts

Tuesday, January 25, 2011

City to bury all overhead power lines by 2025

HCM CITY — The sight of overhanging cable tangles in most city streets could be thing of the past by 2025 if a project proposal to bury them goes according to schedule.

The HCM City Power Corporation (EVN HCM City) is putting final touches on its plan to go underground with all the city's power and communication lines.

The plan, estimated to cost about VND4 trillion (US$210 million), will be submitted to the municipal People's Committee next month.

The plan divides the project into three implementation stages.

In the first stage (2011-15), the entire medium and low-voltage power networks and communication lines in roads and alleys in central districts 1 and 3 will be laid underground.

Three to five major roads in each of the remaining districts will also have their cables buried underground during this period.

The first stage will need an investment capital of VND3.36 trillion to lay 9 km of high-voltage power lines, 300 km of medium – voltage power lines and 400 km of low-voltage power lines.

In 2016-2020, EVN HCM City will basically complete the task of laying all medium-voltage and low-voltage power networks and communications lines underground in all central and neighbouring districts.

The second stage will need an investment capital of VND383 billion.

In the final stage, 2021-25, EVN HCM City will basically complete burying power and communications lines in all the districts, new urban areas and industrial parks.

EVN HCM City carried out a pilot project to bury cables last year on some roads in district 1, 3 and 5.

A stretch of Tran Hung Dao Street, that runs between its intersections with Nguyen Khac Nhu to Nguyen Van Cu streets in District 1, became the first site in the city to have power networks and communication lines go underground.

In District 3, work to bury the cables is ongoing on Truong Dinh, Le Quy Don, Pasteur, Pham Ngoc Thach and Nguyen Thi Minh Khai Street.

About 90 per cent of power networks and communication lines on Le Thanh Ton Road in District 1 have been laid underground.

This month, EVN HCM City plans to begin the work on Nguyen Trai Street. — VNS

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Power cuts expected for months to come

Vietnam is faced with occasional power shortages during the next two or three months – and the situation is not forecast to improve in the new year.

Statistics from State-run Electricity of Vietnam Group (EVN) show that in the first nine months of the year, total water in national reservoirs was 33.3 billion cubic metres less than at the same period last year.

This is sufficient to cause hydro-power shortages of up to 6 billion kWh.

Total electricity production from all sources last month amounted to just over 8.6 billion kWh, up 15 per cent on the same period last year.

Reduced water levels have left power authorities perplexed at the possibility of power shortages and cut-offs in the near future as well as shortages next year.

To deal with the issue, Prime Minister Nguyen Tan Dung has asked the EVN to regulate power supplies for production and consumption and to try and limit cutting supplies.

He said the sector should mobilise oil-fired and coal-fired power plants, bring newly-built plants into operation and promote the saving of power among the population.

Deputy general director of the EVN Dang Hoang An said hydro power normally produced more than 59 per cent of total needs.

He said while the sector might be able to meet demand for 25 billion kWh in the last three months of this year, an additional problem was the temporary closure of Ca Mau Gas Factory PA3 pipelines for maintenance.

Ta Van Luan, director of Yaly Hydropower Plant, said water levels at Pleikrong Reservoir were about 537m, compared to 570m for the same period last year.

He said he did not expect the situation to improve in the near future and that the plant had been operating only five hours a day, lower than full capacity.

A similar situation is being experienced at the largest Yaly Hydropower Plant, which has a water level of 490m, 25m lower than average level last year.

Luan said water flow into Yaly reservoir was 160cu.m a second, but its four turbines needed 420cu.m a second to reach full capacity.

He said in the first nine months of the year, the plant had run at half of its capacity because of the low water levels.

And that some water would be saved for next year. The plant is expected to supply 4 billion kWh this year, compared to its expected production of 5.5 billion kWh.

Reservoirs in the Central Highlands and the south are facing drought.

Le Van Quang, deputy director of Da Nhim-Ham Thuan-Da Mi Hydropower Company said the water level at Ham Thuan was only 39cm above the lowest level and supplied water for electricity for only eight hours a day.

He said the 400MW Tri An Hydropower Plant had received 4.1 billion cu.m, 2 million cu.m lower than at the same period last year. Its water level was less than a metre above the lowest level.

Director of Tri An Hydropower Plant Nguyen Kim Phuc said low water levels had reduced expected electricity production this year to 1-1.2 billion kWh, the lowest level in 23 years of operation.

 

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Monday, January 24, 2011

Power cuts expected for months to come

HA NOI — Viet Nam is faced with occasional power shortages during the next two or three months – and the situation is not forecast to improve in the new year.

Statistics from State-run Electricity of Viet Nam Group (EVN) show that in the first nine months of the year, total water in national reservoirs was 33.3 billion cubic metres less than at the same period last year.

This is sufficient to cause hydro-power shortages of up to 6 billion kWh.

Total electricity production from all sources last month amounted to just over 8.6 billion kWh, up 15 per cent on the same period last year.

Reduced water levels have left power authorities perplexed at the possibility of power shortages and cut-offs in the near future as well as shortages next year.

To deal with the issue, Prime Minister Nguyen Tan Dung has asked the EVN to regulate power supplies for production and consumption and to try and limit cutting supplies.

He said the sector should mobilise oil-fired and coal-fired power plants, bring newly-built plants into operation and promote the saving of power among the population.

Deputy general director of the EVN Dang Hoang An said hydro power normally produced more than 59 per cent of total needs.

He said while the sector might be able to meet demand for 25 billion kWh in the last three months of this year, an additional problem was the temporary closure of Ca Mau Gas Factory PA3 pipelines for maintenance.

Ta Van Luan, director of Yaly Hydropower Plant, said water levels at Pleikrong Reservoir were about 537m, compared to 570m for the same period last year.

He said he did not expect the situation to improve in the near future and that the plant had been operating only five hours a day, lower than full capacity.

A similar situation is being experienced at the largest Yaly Hydropower Plant, which has a water level of 490m, 25m lower than average level last year.

Luan said water flow into Yaly reservoir was 160cu.m a second, but its four turbines needed 420cu.m a second to reach full capacity.

He said in the first nine months of the year, the plant had run at half of its capacity because of the low water levels.

And that some water would be saved for next year. The plant is expected to supply 4 billion kWh this year, compared to its expected production of 5.5 billion kWh.

Reservoirs in the Central Highlands and the south are facing drought.

Le Van Quang, deputy director of Da Nhim-Ham Thuan-Da Mi Hydropower Company said the water level at Ham Thuan was only 39cm above the lowest level and supplied water for electricity for only eight hours a day.

He said the 400MW Tri An Hydropower Plant had received 4.1 billion cu.m, 2 million cu.m lower than at the same period last year. Its water level was less than a metre above the lowest level.

Director of Tri An Hydropower Plant Nguyen Kim Phuc said low water levels had reduced expected electricity production this year to 1-1.2 billion kWh, the lowest level in 23 years of operation. ­— VNS

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Tuesday, January 11, 2011

EVN pledges sufficient power supply in Q4

HCMC – The Electricity of Vietnam Group (EVN) pledged on Monday that the State utility would try its best to meet the country’s total power demand at some 25 billion kilowatt hours in the fourth quarter of this year.

The group’s deputy general director Dang Hoang An told an online meeting organized by the Ministry of Industry and Trade that EVN would mobilize more energy sources to minimize power outages.

EVN has had to purchase a maximum volume of power from other sources including 67.8 billion kilowatt hours from China to lessen impacts of the power supply crunch in the January-September period, An told the meeting to review industrial production in the first three quarters. He explained that power supply was strain lately due to droughts, causing the water flow to reservoirs to dwindle.

According to a report issued on Monday by the Ministry of Industry and Trade, in the last quarter of the year, some power plants are expected to start commissioning such as the first power turbine of Son La Hydropower Plant, and the first turbines of Song Tranh 2 Hydropower Plant and Dong Nai 3 Hydropower Plant.

The forthcoming operation of such hydropower plants will help ease the power shortage in the country.

However, An noted that the power outages could still occur for around ten days this month as PetroVietnam has just announced a scheme to maintain the gas pipelines of Ca Mau Gas Power Complex over ten days.  

Furthermore, An of EVN also told the ministerial meeting that the most worrying problem for EVN is to cope with the water storage in the coming months, particularly during the dry season in the first half of next year.

“EVN will work with the Ministry of Agriculture and Rural Development in the coming days to seek measures for this matter,” An said, referring to the conflict of storing water for power generation and pumping water for farming.

Speaking at the meeting, Minister of Industry and Trade Vu Huy Hoang asked PetroVietnam to work with its Malaysian partner to speed up the gas pipeline maintenance and for the time being use oil to fuel the Ca Mau power plant so that it can run at full capacity in the pipeline maintenance process.

Related to industrial production of the country, the ministry in its report expected a growth rate of 14% as targeted for the manufacturing sector this year, after attaining an industrial production value of VND574 trillion in the year to date, a year-on-year increase of 13.8%.

The ministry also predicted that for the whole year 2010, the country will also obtain total export revenue of US$69 billion, an increase of 21%, while import expenditure is estimated at US$82 billion, up 17% year-on-year.

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Vietnam set to face serious power shortage in 2013

Vietnam set to face serious power shortage in 2013Vietnam will face critical power shortages in 2013 and 2014 as demand for electricity in the country is growing at a fast pace, a government official said Saturday.

Drastic measures need to be taken soon to speed up the construction of new power plants, Minister Nguyen Xuan Phuc, head of the government office, said in a meeting of the National Assembly’s Standing Committee.

“Power prices should also be reviewed to attract investment for power plant projects from all sectors,” he said.

The government said power demand will increase by 15 percent next year. If local production and power purchases from China and Laos go ahead as planned, the demand can be met. However, if one new power project is delayed or weather conditions are not favorable, there will be shortages.

According to a report by the NA Economic Committee, most power projects scheduled for completion in 2010-2011 have faced delays. The committee said out of 51 projects it had inspected, only five were on schedule.

Experts have said the lack of rain this year has put huge pressure on power production in Vietnam. However, the main reason for Vietnam’s power woes is delays in the construction of new power projects.

The Vietnam Energy Association also said current power prices of around 5 US cents per kilowatt-hour don't encourage investment into the sector, as manufacturers only earn profits at prices of about 7-8 cents per kWh.

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Tuesday, December 28, 2010

Target to hold prices and curb power cuts

HA NOI — The Government will instruct relevant agencies to carry out synchronous measures to control prices, while overcoming power shortages, Prime Minister Nguyen Tan Dung said at the Government's regular monthly meeting yesterday.

Participants at the meeting were told that the Prime Minister would soon issue an instruction on price controls in an attempt to stabilise the market up to early 2011.

Dung said a nationwide conference would be held on implementing the instruction in a bid to fulfil this year's socio-economic targets, such as controlling inflation.

He stressed the need to maintain a stable prime rate, to manage the monetary system in an active but flexible way and to keep the price of essential commodities and medicines stable.

The Prime Minister asked ministries, cities and provinces to reserve enough goods to serve public demand during the lunar new year celebrations.

In an attempt to overcome power shortages, Dung urged electricity suppliers – particularly the Electricity of Viet Nam – to take drastic measures to speed up the construction of power plants, while buying electricity from neighbouring countries and cutting down on waste.

Participants at the meeting heard that the socio-economic situation had developed positively in the first nine months of this year. The economy had recovered fairly quickly after the global downturn and performed better than the same period in 2008 and 2009.

Specifically, the gross domestic product growth averaged 6.52 per cent in the first nine months, while industrial production was higher than the whole year's plan.

Export turnover was about US$51.5 billion in the first nine months, an increase of 23 per cent compared with the same period last year and four times higher than the National Assembly's approved target of over 6 per cent.

Total import turnover was $60 billion, an increase of 22 per cent compared with the same period last year. The trade deficit continued to narrow down and stood at $8.5 billion – equal to 16.7 per cent of the total export turnover.

The consumer price index rose 8.64 per cent compared with the same period last year.

Despite much progress, the economy was still facing many difficulties, the conference heard.

The price of consumer goods had increased, as had the price of gold. The sluggish performance of some major world economies continued to affect the country's export growth.

Production and trading enterprises were still finding it difficult to borrow money because of high interest rates, the Prime Minister said. Making matters worse, the country also has to cope with natural disasters such as typhoons, flooding and epidemics.

To overcome these difficulties, the Government has asked ministries, industries, cities and provinces to ensure there are enough supplies of commodities and that prices are stable, while disbursing investment capital for projects using Government bonds and the State budget.

The meeting reviewed socio-economic development in the first nine months and discussed strategies for the remainder of 2010. — VNS

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Monday, December 27, 2010

Government focuses on prices, power shortage

Government focuses on prices, power shortage

The government will focus on implementing measures to control prices and
deal with power shortage in the remaining months of this year,
according to Prime Minister Nguyen Tan Dung.


The PM made the statement at the cabinet’s September meeting on
September 30, which discussed the nation’s socio-economic performance in
the past nine months and socio-economic tasks in the fourth quarter.


PM
Dung said he will soon issue Instructions on solutions to control
prices and stabilize the market from now to the year-end and early 2011.


Putting
the emphasis on the close connection between prices and monetary and
credit policies, the PM underscored the need to continue keeping stable
the prime interest rate.


He asked relevant ministries and
agencies to be proactive and flexible in executing monetary policies in
service of economic growth, not letting any price fever of essential
goods, especially medicine and milk, occur.


To tackle power
shortage, PM Dung asked the electricity sector, especially the
Electricity of Vietnam to take drastic measures to ensure sufficient
power in both short and long terms.


He requested the sector to
quickly speed up construction and commissioning of power plants along
with buying power from neighbouring countries and regulating power
resources appropriately.


At this meeting, the cabinet members
discussed reports on the country’s socio-economic performance over
September and the past nine months presented by ministries of planning
and investment, finance, and industry and trade, and forecast the future
national and global economic situation.


They agreed that the country’s national economy moved positively over the past nine months with GDP reaching 6.52 percent.


Exports
in nine months were estimated to rake in 51.5 billion USD, rising 23.2
percent over the same period in 2009 and nearly quadrupling the yearly
goal of over 6 percent set by the National Assembly.


Trade
deficit continued to be narrowed to stand at 8.58 billion USD, which
accounted for 16.7 percent of export value, or the lowest level in the
past years.


The cabinet members were concerned about an increase
of 1.31 percent in consumer price index (CPI) in September, which made
CPI grow 6.46 percent compared to December, 2009 and 8.64 percent year
on year.


Also at this meeting, the cabinet members listened and
gave opinions to reports on Vinashin’s business and production
performance, land use plans for the 2011-2015 period and to 2020, and a
summary of government members’ opinions on a draft decree to replace
Decree 62/2006/ND-CP on sanctions against administrative violations in
the maritime sector./.

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Sunday, December 19, 2010

Power firms may be given more freedom in pricing

Power firms may be given more freedom in pricingVietnam may allow power companies to adjust prices on a quarterly basis as the country plans to create a more market-based pricing scheme for its power sector.

According to new regulations drafted by the Ministry of Industry and Trade, power wholesalers will be allowed to raise their prices accordingly if production costs increase by more than 1 percent from the previous quarter. In case of a price hike of more than 10 percent, the government will take measures to stabilize the market.

Power companies will be required to set aside parts of their profits for a price stabilization fund which will be used to offset future losses when production costs surge. The fund resembles a stabilization fund used by fuel traders.

Vietnam’s government currently allows power prices to change once a year. The most recent change was a 6.8 percent hike in March based on higher input costs for power production.

The new regulations are expected to be approved by the end of this year and new power prices will be announced in March 2011.

Officials at the Industry and Trade Ministry and state power utility Electricity of Vietnam (EVN) have said that the increase will be small and will not have any significant impact on daily life or production.

According to the Vietnam Energy Association, current power prices of around 5 US cents per kilowatt-hour are not attractive enough to encourage investment in the sector, as manufacturers only earn profits at prices of about 7-8 cents per kWh.

EVN posted a loss of more than VND3 trillion in the first six months this year because retail prices were set so low, the association said.

An EVN official said a more market-based pricing mechanism could help improve the companies financial situation and make it easier to secure loans.

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Saturday, December 18, 2010

Power firms may be given more freedom in pricing

Power firms may be given more freedom in pricingVietnam may allow power companies to adjust prices on a quarterly basis as the country plans to create a more market-based pricing scheme for its power sector.

According to new regulations drafted by the Ministry of Industry and Trade, power wholesalers will be allowed to raise their prices accordingly if production costs increase by more than 1 percent from the previous quarter. In case of a price hike of more than 10 percent, the government will take measures to stabilize the market.

Power companies will be required to set aside parts of their profits for a price stabilization fund which will be used to offset future losses when production costs surge. The fund resembles a stabilization fund used by fuel traders.

Vietnam’s government currently allows power prices to change once a year. The most recent change was a 6.8 percent hike in March based on higher input costs for power production.

The new regulations are expected to be approved by the end of this year and new power prices will be announced in March 2011.

Officials at the Industry and Trade Ministry and state power utility Electricity of Vietnam (EVN) have said that the increase will be small and will not have any significant impact on daily life or production.

According to the Vietnam Energy Association, current power prices of around 5 US cents per kilowatt-hour are not attractive enough to encourage investment in the sector, as manufacturers only earn profits at prices of about 7-8 cents per kWh.

EVN posted a loss of more than VND3 trillion in the first six months this year because retail prices were set so low, the association said.

An EVN official said a more market-based pricing mechanism could help improve the companies financial situation and make it easier to secure loans.

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Monday, December 6, 2010

Interest rates, power cuts top enterprise concerns

Interest rates, power cuts top enterprise concernsHigh credit costs and power cuts are factors that most worry enterprises in the country, according to survey results released last week by the Vietnam Chamber of Commerce and Industry (VCCI).

The high interest rate on loans as well as power cuts in the second quarter had pushed up production costs, respondents said in the Vietnam Business Insight Survey that was supported by the Lee Kuan Yew School of Public Policy’s Asian Competitiveness Institute and the Asia Foundation, as well as the General Statistics Office.

The survey, which covered 380 firms across the nation, found 64 percent of the respondents paying interest rates of between 12 and 16 percent on short-term loans. They said the rate was high and unreasonable at a time when global economic crisis-related difficulties still remained.

Head of the VCCI’s Business Development Institute, Phan Thi Thu Hang, said the rates were at the peak of what firms could suffer at 16 percent.

About 94 percent of the respondents wanted reasonable rates of less than 12 percent, the quarterly survey found.

Prime Minister Nguyen Tan Dung in May told the State Bank of Vietnam to order lenders to bring down borrowing costs to 12 percent and cut the deposit rate to 10 percent.

Hang said local firms were optimistic that recent efforts by the government in reducing interest rates would succeed, but they also felt more efforts were needed.

Power supply

More than half the survey respondents said regular power cuts in the second quarter – two to three times a week in some areas – significantly impacted production.

The survey did not report any loss suffered by local firms from the power cuts, but said 40 percent said the impacts were “serious” and 16 percent said they were “very serious.”

Hang said the power cuts had raised awareness among the firms of the importance of power-saving measures.

The survey showed 60 percent of the respondents setting the goal of effecting 10-20 percent power savings over the next three years.

Another institute official who did not want to be named said local firms in the Mekong Delta were facing the challenge of finding skilled workers as they expected increases in production and sales in coming quarters.

The survey showed that a shortage of skilled workers was a big concern for the firms in the delta, a region that lacks professional training centers, he said.

Sales and inventory

A report issued last week by the General Statistics Office said production and sales posted growth rates of 13.7 and 12 percent respectively in the first seven months while inventory climbed 37.5 percent.

Vu Van De, head of the office’s Industry Statistics Department in HCMC, said the crisis has passed and local firms had reported recovery that was reflected in production and sales growth, but cautioned inventory had also increased at the same time.

“There is an unbalance in production and sales,” said De, suggesting that firms need to take steps to address this.

He said the biggest growth rates of over 20 percent in sales were achieved by ceramics, alcohol beverages and dairy products in the first seven months of the year.

However, non-alcohol beverages had the highest inventory that was up six times over the same period last year, De said, adding this industry was followed by cement, with more than two times higher than last year’s January-July inventory.

The tobacco industry had the lowest inventory, dropping 39.2 percent year-on-year, while seafood, foodstuff, and vegetables posted similar inventories to last year, De said.

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Friday, December 3, 2010

Power outages to continue to grip Vietnam

HANOI, HCMC – Vietnam’s severe power shortages have shown signs of worsening as hydropower plants now responsible for around 35% of total electricity output are still in distress in the current rainy season, according to the country’s leading power firm.

Electricity of Vietnam chairman Dao Van Hung said power outages might worsen from 2012 onwards because droughts had caused 17 key hydroelectric reservoirs around the country to dry up.

Speaking to the Daily on Wednesday, Hung said protracted droughts had left a huge impact on the hydropower plants that have a combined capacity of 6,500 MW. All the power stations developed and run by EVN in the country have a total capacity of some 19,000 MW.

Late last year, EVN already warned of more severe power shortages from 2012 onwards, Hung said.

The reservoir of Hoa Binh, the country’s largest hydropower station in the northern region, has receded to danger levels as floodwater inflows have been insignificant since May this year.

The current shortage of some 23 billion cubic meters of water at this reservoir means a reduction of power generation by 1.4 billion kilowatt hours from last year, according to EVN.

This is not EVN’s fault over the power undersupply, Hung said, blaming weather and problems with mobilizing enough resources for gas-fueled and thermo-power stations.

Meanwhile, new power projects have almost come to a standstill due mainly to the chronic financing crunch while investors have shown no interest in such projects given unattractive power tariffs. EVN has therefore called for an increase in power prices to encourage investors to get involved.

“In the past three years, EVN has not been able to start work on any new power stations. We have found it impossible to raise enough investment capital as a result of the economic crisis. Earlier, we planned to build six new plants worth some VND140 trillion,” he said.

EVN is still struggling to seek some US$33 billion to develop new power sources in line with the sixth National Master Plan for Power Development already approved by the Government, he said, adding that was the consequence of low power selling prices.

In a document issued by the Electricity Regulatory Authority of Vietnam and obtained on Wednesday by the Daily, Vietnam’s power prices are much lower than in many other regional countries. The average price of power in Vietnam is about 5.5 U.S. cents per kilowatt hour.

The authority also said the low prices had rendered EVN helpless to buy power from non-EVN-member stations.

To cope with the issue, EVN is working with the Ministry of Industry and Trade over possibilities of hiking power prices from 2011.     

Hung attributed the power shortages to the rampant development of cement and steel plants which consume a great deal of electricity. EVN will ask the Ministry of Industry and Trade to direct cement and steel producers to rearrange their production schedules so as to avoid operating at peak hours.

Steel producers nationwide now consume 1,900 MW and cement producers some 1,500 MW at the moment, according to the EVN chairman.

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Monday, November 29, 2010

Ministry completes draft decision on wind-power prices

Two men work on a power line in HCMC in a file photo. Wind power is now supplied to the national grid but regulations on wind power selling prices are not yet out - Photo: TL
HCMC – The Ministry of Industry and Trade has finished a draft decision on selling prices of wind power, which an official said is expected to create a much-needed framework for developing wind power in the country.  

Le Tan Phong, deputy director of the ministry’s Department of Energy, told the Daily on Tuesday that the decision would likely be submitted to the Government within this week for final approval.

He declined to elaborate on the draft decision, but another official said the selling price would likely be raised to 8 U.S. cents a kWh compared to the current 5.5 cents. That will be a strong boon for investors engaging in wind-power projects, said Ho Son Hung, deputy director of the Department of Industry and Trade of Binh Thuan Province, where several wind-power projects are being planned.

Hung said that according to the latest suggestions by the province for the drafted decision, “the selling price of wind power could be set at about 8 U.S cents per kilowatt hour, with a subsidy from the State.

“This price would be encouraging enough for investors to spend their money to develop more wind power projects in the coming time.”

He also noted that many wind power investors have grown impatient in recent years due to the absence of a concrete decision on the selling price of the wind power.

By this time, Binh Thuan authorities have approved a total of 12 projects of wind power development. One such project located in Binh Thuan’s Tuy Phong District has lately generated power to the national grid, although the selling price has not been settled between the investor and Electricity of Vietnam Group, or EVN.

Tran Viet Ngai, chairman of the Vietnam Energy Association told the Daily early this week that the Government should have more preferential policies for the development of wind and solar power. Particularly, investors of renewable energy have repeatedly asked for higher selling prices of power generated from wind and solar sources.

Referring to the above-mentioned wind power project in Binh Thuan, Ngai said, the 7.5MW plant was already supplying power to the national grid, the wide gap remained between the developer and EVN.

“That is because the investor wanted to sell power at 11 U.S. cents per kWh while EVN wanted it to be only 5.5 cents,” said the chairman of the association.

Experts said the country has huge potential to develop as much as 5,000MW of wind power.

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Thursday, November 25, 2010

Expert calls for strong shift to thermo-power supply

HCMC – Vietnam needs to make a drastic shift to thermo-power generation and lessen its reliance on hydro-power sources if the country is to avoid widespread outage in the dry season, said an industry expert.

Tran Viet Ngai, chairman of the Vietnam Energy Association (VEA), told the Daily on the phone on Monday that the nation’s structure of power supply still posed a danger for the economy as hydroelectric stations were still responsible for over 60% of total power output.

To ensure energy security for the country in the coming years, power generation restructuring is imperative, he told the Daily after the commencement of the thermo-power plant Duyen Hai 1 in Tra Vinh Province on Sunday.

“Hydroelectric plants around the country are much dependent on weather. Vietnam has been warned of climate change impacts, so I think rainfalls will decline in the coming years, and drought will last longer,” said Ngai.

Ngai commented that the Government had become aware of the situation and has therefore supplemented 13 thermoelectric projects with total output of 13,800MW into the Sixth National Master Power Development Plan. This added output is nearly equivalent to the current total power supply of the country.

Under the assignment of the Government, Electricity of Vietnam (EVN) will build four thermoelectric plants, PetroVietnam another four plants, and Vietnam National Coal and Mineral Industries Group (Vinacomin) three plants between now and 2015.   

Until now, only EVN has started work on two projects, while the other investors have not made a move, Ngai said.

EVN on Sunday started work on Duyen Hai 1 thermoelectric project in the Mekong Delta province of Tra Vinh with a designed output of 1,245MW at a cost of VND19.2 trillion, or some US$1.5 billion. The group last month also started construction of Vinh Tan 2 thermoelectric plant in Binh Thuan Province with the same capacity.

These two thermoelectric plants are expected to supply power to the national grid from the middle of 2014. It is not known when EVN will commence work on the two remaining projects, Mong Duong 1 and Duyen Hai 3.

“If the Government does not urge investors to quickly start construction of these 13 thermoelectric plants for completion by 2015, the country will struggle with more severe power shortages,” he said.

According to the Ministry of Industry and Trade, power shortage occurs regularly from April to August when the rainy season is about to begin. The situation earlier this year was particularly critical as the long drought badly affected operations of hydropower plants in northern provinces.

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Sunday, November 21, 2010

Thermal power plant dedicated

TRA VINH — Deputy Prime Minister Truong Vinh Trong attended the ground-breaking ceremony yesterday for Tra Vinh Province's Duyen Hai 1 Thermal Power Plant, which he believed would play an integral role in ensuring the country's power demand for socio-economic development by 2015.

Trong, speaking at the ceremony, affirmed that the plant's construction was encouraging for the development of the southwestern region and for investments in the Cuu Long (Mekong) Delta area.

The Electricity of Viet Nam Group (EVN), which invested US$1.57 billion in the plant, and the contractor, Dongfang Electric Power Corporation (China), were asked to carry out their commitments, ensure rapid construction and engage in only environmentally-sound practices.

The plant offers a total installed capacity of 1,245MW, with an average output power from 7.5 to 8 billion kWh per year, using coal fuel and thermal power technology consistent with Viet Nam's antraxit coal. The plant will also meet all criteria regarding productivity, stability, safety and environmental protection.

According to Trong, by 2010's close, the Government will invest in the construction of Co Chien Bridge, which would link Ben Tre and Tra Vinh provinces, in order to facilitate further development of the region. The bridge is expected to be finished within in three years.

The EVN launched three other projects this year, including Nghi Son Oil Refinery, Song Bung 2 Hydropower Project and Vinh Tan 2 Thermal Power Plant. —VNS

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Saturday, November 20, 2010

Power shortage blamed on delayed projects

Power shortage blamed on delayed projectsDelays in construction of new power projects are the main reason for Vietnam’s power shortage, a senior official says.

“Hydropower plants account for 40 percent of the total power output, and low water levels play a part in the power shortage, but not the whole part,” Tran Dinh Long, deputy chairman of the Vietnam Electricity Power Association, told Thanh Nien.

“There was critical power shortage, even during the flooding season, and that’s because new power projects are behind schedule.”

The government in April had forecast that the lack of water in reservoirs could mean a loss of nearly 1 billion kilowatt-hours of electricity at hydropower plants this year.

Long said power losses at existing power plants could be offset if there were new plants.

“The power shortage has forced many thermal power plants to continuously run at full capacity, making them prone to technical problems that cause even more critical shortages,” he said.

Besides, no measure has been taken to control power consumption in the country, and production has been unable to catch up with rising demand.

Long said the government needs to be stricter in dealing with delayed power projects. Vietnam should also diversify its power sources by developing renewable energy and nuclear power projects, he said.

Vietnam plans to build four nuclear power reactors in the central province of Ninh Thuan, with a total capacity of 4,000 megawatts. One of the four is set to be operational in 2020.

Long said if nuclear power can account for around 15 percent of the total output, the power shortage would be eased considerably.

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Power shortage blamed on delayed projects

Power shortage blamed on delayed projectsDelays in construction of new power projects are the main reason for Vietnam’s power shortage, a senior official says.

“Hydropower plants account for 40 percent of the total power output, and low water levels play a part in the power shortage, but not the whole part,” Tran Dinh Long, deputy chairman of the Vietnam Electricity Power Association, told Thanh Nien.

“There was critical power shortage, even during the flooding season, and that’s because new power projects are behind schedule.”

The government in April had forecast that the lack of water in reservoirs could mean a loss of nearly 1 billion kilowatt-hours of electricity at hydropower plants this year.

Long said power losses at existing power plants could be offset if there were new plants.

“The power shortage has forced many thermal power plants to continuously run at full capacity, making them prone to technical problems that cause even more critical shortages,” he said.

Besides, no measure has been taken to control power consumption in the country, and production has been unable to catch up with rising demand.

Long said the government needs to be stricter in dealing with delayed power projects. Vietnam should also diversify its power sources by developing renewable energy and nuclear power projects, he said.

Vietnam plans to build four nuclear power reactors in the central province of Ninh Thuan, with a total capacity of 4,000 megawatts. One of the four is set to be operational in 2020.

Long said if nuclear power can account for around 15 percent of the total output, the power shortage would be eased considerably.

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Friday, November 19, 2010

Tra Vinh has new thermo-electric power plant

Deputy Prime Minister Truong Vinh Trong on Sept. 19 issued an order to
build the Duyen Hai 1 thermo-electric power plant in the Mekong delta
province of Tra Vinh.


At the ground-breaking ceremony, Deputy PM Trong emphasised the significance of the project in socio-economic development.


The plant is part of the power centre which is expected to help boost
regional socio-economic development and attract more investors to Tra
Vinh province and the Mekong delta region as a whole, he said.


The deputy PM assigned the project’s investor, EVN, to ensure the
construction pace and asked local authorities to speed up site clearance
and pay attention to the living conditions of local people, especially
ethnic Khmer people.


He also said the Government
will build the Co Chien bridge in Tra Vinh province at the end of the
year and the construction of the bridge is expected to last for three
years.


Chairman of the Electricity of Vietnam (EVN)
Dao Van Hung said that this is one of three plants of the Duyen Hai
Power Centre which has a combined capacity of almost 4,500 MW and a
combined investment of around 5 billion USD.


The
1,245MW plant has an investment capital of 1.57 billion USD, of which 85
percent is sourced from the Import-Export Bank of China.


The first turbine of the plant is expected to be operational in September 2014 and the second two months later.


The plant will consume around 3.5 million tonnes of anthracite to produce around 7.2 billion kWh per year./.

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Monday, November 15, 2010

Power plants create opportunities

Vietnam will have a large market for domestic equipment manufacturing
with the planned development of 70 coal-fired power plants within the
next 15 years, according to mechanical engineering experts.


Under the national electricity development plan for 2006-15, more than
40 coal-fired power plants with capacity of 600MW or more will be
constructed in the country.


Between 2015 and 2025,
another 30 coal-fired power plants will begin producing power. With this
considerable development, demand for coal-fired power plant devices
from now to 2025 will increase.


Deputy Minister of
Industry and Trade Do Huu Hao said the domestic mechanical engineering
industry has seen significant growth in equipment manufacturing for
thermal power, reaching capacity of 600MW.


Domestic
businesses, such as the Corporation for Industrial Machinery and
Equipment and Vietnam Engine Agricultural Machinery Corporation, have
made a number of important devices such as engines, gear boxes and fan
pumps.


The domestic mechanical engineering industry
has built around 50 to 70 percent of the country's standard equipment
needs, such as lifting buckets, conveyor belts, storage devices and dust
filtration equipment.


Although Vietnamese enterprises
have the capacity to produce a significant portion of the equipment
needed for coal-fired power plants, generally only 40 percent of the
equipment used by the coal-fired power projects that are under
construction are from domestic enterprises, accounting for only 25
percent of the total value.


If domestic enterprises do not develop, they will fail to take advantage of a great opportunity.


Ngo Van Tru, deputy director of the Department of Heavy Industry under
the Ministry of Industry and Trade said domestic firms without an
understanding of design would not be able to contribute anything.
Domestic firms need time to study in order to participate in power plant
design.


Director of the Centre for Design and
Machinery Manufacturing Technology under the Ministry of Industry and
Trade Hoang Van Got outlined some local production schemes and added
that rather than becoming sub-contractors for foreign contractors,
domestic firms should plan to work with foreign partners to design and
manufacture boilers.


Domestic firms could also
manufacture the auxiliary devices for turbine generators with support
from foreign consultants. This plan could lead to domestic production of
40 percent of project value, he said.


He also
proposed measures to assign domestic joint venture companies as
Engineering, Procurement and Construction (EPC) contractors to ensure
active implementation of Build and Transfer Technology plans.


Engineering enterprises have also proposed an increase in domestic
production of supplies for thermal power plants in Vietnam .


Incentives should be offered by including required conditions in
international bidding and encouraging the establishment of centres for
mechanical equipment manufacturing./.

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Sunday, November 14, 2010

Power plants create opportunities

Phu My Power Plant No3 is part of the Phu My Industrial Zone 1. The industrial zone located in Ba Ria-Vung Tau Province consists of five power plants with a combined capacity of up to 3,900 MW. — VNA/VNS Photo Ha Thai

Phu My Power Plant No3 is part of the Phu My Industrial Zone 1. The industrial zone located in Ba Ria-Vung Tau Province consists of five power plants with a combined capacity of up to 3,900 MW. — VNA/VNS Photo Ha Thai

HA NOI — Viet Nam will have a large market for domestic equipment manufacturing with the planned development of 70 coal-fired power plants within the next 15 years, according to mechanical engineering experts.

Under the national electricity development plan for 2006-15, more than 40 coal-fired power plants with capacity of 600MW or more will be constructed in the country.

Between 2015-25, another 30 coal-fired power plants will begin producing power. With this considerable development, demand for coal-fired power plant devices from now to 2025 will increase.

On December 26, 2002, the Prime Minister approved a development strategy for Viet Nam's mechanical engineering industry with the priority goal of developing key mechanical products.

Deputy Minister of Industry and Trade Do Huu Hao said the domestic mechanical engineering industry has seen significant growth in equipment manufacturing for thermal power, reaching capacity of 600MW.

Vietnamese and foreign experts have done all the basic designs for the industry.

Domestic businesses, such as the Corporation for Industrial Machinery and Equipment and Viet Nam Engine Agricultural Machinery Corporation, have made a number of important devices such as engines, gear boxes and fan pumps.

The domestic mechanical engineering industry has built around 50 to 70 per cent of the country's standard equipment needs, such as lifting buckets, conveyor belts, storage devices and dust filtration equipment.

Although Vietnamese enterprises have the capacity to produce a significant portion of the equipment needed for coal-fired power plants, generally only 40 per cent of the equipment used by the coal-fired power projects that are under construction are from domestic enterprises, accounting for only 25 per cent of the total value.

If domestic enterprises do not develop, they will fail to take advantage of a great opportunity.

Ngo Van Tru, deputy director of the Department of Heavy Industry under the Ministry of Industry and Trade said domestic firms without an understanding of design would not be able to contribute anything. Domestic firms need time to study in order to participate in power plant design.

Director of the Centre for Design and Machinery Manufacturing Technology under the Ministry of Industry and Trade Hoang Van Got outlined some local production schemes and added that rather than becoming sub-contractors for foreign contractors, domestic firms should plan to work with foreign partners to design and manufacture boilers.

Domestic firms could also manufacture the auxiliary devices for turbine generators with support from foreign consultants. This plan could lead to domestic production of 40 per cent of project value, he said.

He also proposed measures to assign domestic joint venture companies as Engineering, Procurement and Construction (EPC) contractors to ensure active implementation of Build and Transfer Technology plans.

Engineering enterprises have also proposed an increase in domestic production of supplies for thermal power plants in Viet Nam.

Incentives should be offered by including required conditions in international bidding and encouraging the establishment of centres for mechanical equipment manufacturing. — VNS

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Sunday, November 7, 2010

Ninh Thuan okays US$500-mil. wind power project

HCMC – Authorities of the central province of Ninh Thuan have just agreed in principle a project by Trung Nam Investment and Construction Joint Stock Co. to develop a wind power project with total designed capacity of 200MW.

In a document signed last Friday by provincial chairman Nguyen Chi Dung, the project will be carried out on the total area of 900 hectares encompassing two villages of Loi Hai and Bac Phong in Thuan Bac District.

Nguyen Hai Yen, marketing manager of Trung Nam Investment and Construction Joint Stock Co., told the Daily on Monday that the wind power project would require total investment of US$500 million.

In a letter of commitment sent to the provincial government, the company also pledges to carry out another project manufacturing technical equipments to supply local wind power plants once its 200-MW wind power project is completed.

According to recent studies conducted by Trung Nam Company, Ninh Thuan Province has much potential for wind power with the average power velocity of some seven meters per second.     

Vietnam has now attached importance to renewable energy. In its strategic plan for renewable energy development, the country targets renewable energy to account for 5% of the total power output by 2020 and up to 11% by 2050.

The amount of renewable energy currently accounts for some 3%.

According to Vietnam Renewable Energy Center, Vietnam has the potential to generate as much as 100,000MW of wind power, with localities suitable for wind power development mostly located in coastal areas in central provinces such as Ninh Thuan and Binh Thuan.

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