PM Approves Development Strategy for Power Sector

 

PM Approves Development Strategy for Power Sector

 

 

The Prime Minister on October 5 endorsed a development strategy for the electricity industry in 2004-2010 with orientations to 2020.

Accordingly, total electricity output will rise to 53 billion kWh in 2005 and 88-93 billion kWh in 2010, with 90 per cent of rural households expected to have electricity in 2010.

The Government also affirmed to build a domestic competitive electricity market and encourage economic sectors to participate in electricity trading. The State will maintain a monopoly only in electricity transmission, operation of large hydropower plants and atomic power plants.

Vietnam targeted its total capacity of all hydropower plants of 13,000-15,000 MW in 2020. Electricity output of coal-fuelled power plants will be 4,400 MW in 2010, while production of gas-fuelled plants will amount to 7,000 MW. The country will open its first atomic power plant in 2015, capable of generating 2,000 MW yearly.

To reach the above-mentioned goals, Vietnam will complete its Electricity Law, build policies for diversifying investment sources, carry out electricity price reforms, and consider value-added tax reduction on electricity products from the current 10 per cent rate down to five per cent in order to reduce pressure to hike electricity prices.

• K.P