EVN to Build up Competitive Electricity Market by 2005

EVN to Build up Competitive Electricity Market by 2005

The issue was raised by Mr Dao Van Hung, General Director of Vietnam Energy Corporation (EVN) at a review conference on the five-year plan (2001-2005) held in Hanoi on December 10, 2004.

Mr. Dao Van Hung said that to implement the strategy and plan of developing the energy sector, the government will gradually structure a competitive market in Vietnam, diversify the forms of investment and encourage the participation of all economic sectors. For its part, EVN has started the research on the development of electricity market in Vietnam, first of all a competitive market on generating of electricity in 2005.

The electricity market will facilitate other economic sectors and businesses to participate in the supply of electricity to socio-economic development. The competition will also boost the activities of EVN power plants increasing business efficiency and making greater contribution to economic development.

To meet the demand of 93 billion Kwh by 2010, in the period 2006-2010, EVN must build and expand 52 power stations with a total capacity of 7,574MW including 42 hydro-electricity stations with a total capacity of 2,670MW and 6 coal-fired electricity stations with a total capacity of 2,700MW and a reserve supply of 12-27 per cent.

EVN also plans to develop thermo power plants in areas with existing resources. The supply of hydro electricity will be 34-45 per cent and coal-fired electricity will increase from 15 per cent in 2005 to 23 per cent in 2010. To achieve the targets, EVN will build 14 hydro electricity stations in 2003-2004 and complete investment formalities to start the construction of power stations in 2005.

In 2006-2010, EVN needs US$13,766 million for investment and paying debts. EVN will make greater efforts to reduce the production cost and losses and ensure financial stability.

As a State-owned enterprise, EVN plays the leading role in the sector, bringing electricity to 100 per cent of rural areas by 2020, contributing to the industrialisation and modernisation of agriculture and rural areas. It will also develop new power resources in remote areas and islands, encourage investment and stabilise electricity prices.

In addition, EVN will expand the power grid, build small and medium power stations, ensure the power supply to areas of ethnic minorities, especially the Central Highlands. EVN will also accelerate the equitisation of power stations and distribution centres, increasing the efficiency of all EVN units.

• Hoang Phuong