Vietnam set to face serious power shortage in 2013

Vietnam 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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Power shortage blamed on delayed projects

Delays 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

Delays 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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Wind power, titanium projects on direct collision course

Wind power in Binh Thuan holds big potential development, but projects in this sector are on a direct collision course with titanium ones - Photo: Khai Nguyen

HCMC, BINH THUAN – Several projects in both wind power and titanium mining sectors in the central province of Binh Thuan have been put on hold as most of the land reserved for wind power overlaps the sites for titanium mining, a provincial official said.

Ho Son Hung, deputy director of the province’s Department of Industry and Trade, told the Daily on Thursday that the provincial government had to date licensed a total of 12 wind power projects covering some 14,000 hectares.

“However, nearly 12,000 hectares of land for the wind power projects is overlapping areas of titanium exploitation with total reserves of some 500 million tons,” he said after a meeting on wind power on Thursday in Binh Thuan.

The twelve licensed wind power projects are Binh Thuan Wind Power 1, Tien Thanh, Phuoc The, Saigon-Binh Thuan, Mien Dong, Thuan Nhien Phong, Binh Thuan, Phu Lac, Van Thanh, HD, WPD, and Vinh Hao.

“This has been an awkward situation for years. We have asked the Government to give a final decision on which areas to be allowed for tapping titanium now and which titanium areas are to be reserved for next generations so that we could continue licensing wind power projects in the coming time,” he said.

“The province will hopefully receive a final decision from the Government in November this year,” he said.

Because of the overlapping situation, the province has decided to stop giving more investment licenses for wind power projects while pending a clearer plan for exploiting titanium reserves.

Hung said he had just heard that the Ministry of Natural Resources and Environment had completed a scheme pinpointing locations of titanium around the province. Binh Thuan is expecting to have the scheme soon.

In recent years, Binh Thuan Province has been known as an attractive place for investors of both titanium projects and wind power projects. The province is said to have total wind power potentiality of some 3,000 MW to be developed between 2010 and 2020 on a total area of some 75,500 hectares, while titanium reserves in the locality are estimated at half a billion tons.

The province on Thursday organized a seminar on wind power development with the participation of many domestic and international energy experts.

Many experts agreed that Binh Thuan’s wind power potentiality will be effectively tapped if the power generated from wind is sold at a better price to ensure profits for investors.

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