No Power Price Hike Now

The second quarter is the peak time of the dry season when the demand for electricity will be higher, but according to a representative of the Ministry of Industry and Trade, no power prices will be hiked for the time being.

According to experts, if the temperature rises by 0.5 - 10C, the power consumption will increase by 2.5 - 3%. Therefore, there were concerns that electricity prices may be revised up in the near future.

Mr. Nguyen Anh Tuan, Director of the Electricity Regulatory Authority of Vietnam (ERAV) under the Ministry of Industry and Trade, said that no hike in power prices will be made for now. The ministry will keep electricity prices according to Decision 648/QD-BCT of the Ministry of Industry and Trade dated March 20, 2019 on adjustment of average retail electricity price and regulation on electricity selling prices.

Eased pressure on power system

As a power pricing mechanism, the Ministry of Industry and Trade is applying the Government's Decision 24/2017/QD-TTg dated June 30, 2017 on retail power pricing, he said. Every year, after checking business costs of the Electricity of Vietnam (EVN), the average electricity selling price is considered and adjusted according to objective fluctuations of input parameters of all stages (power generation, transmission, distribution - retailing, operation - management and services) compared with parameters used to determine the current average selling price of electricity.

During the year, the average selling price is considered for adjustment when the basic input parameters of the power generation stage fluctuate compared to the parameters used to determine the current price. Thus, revising power prices will be based on input factors.

Mr. Vo Quang Lam, Deputy General Director of EVN, added that, with the Government's preferential policies, the power system has rapidly developed capacity since 2019. By the end of 2020, the power system capacity reached more than 70,000 MW, including 14,000 MW of renewable energy.

"In the context of the Covid-19 pandemic, electricity production and consumption decreased from previous years, and pressures on the electricity industry are not very high. Although the electricity industry has a large reserve, we are closely monitoring it to timely direct power corporations to prepare power supply plans and upgrade power infrastructure. With present preparations, if there are no special and very special cases, the power sector will ensure a safe and uninterrupted power supply in 2021 and the following years," he pledged.

No power shortage in the dry season

In the report on electricity production and business in the first quarter of 2021 announced by EVN on April 7, its commercial power output reached 50.81 billion kWh in the quarter, up 3.2% year on year. The power supply management has closely followed the national and regional electricity demand.

Regarding construction investment, in the first quarter of 2021, EVN accelerated the progress of Quang Trach Power Center, 500kV transmission line 3, 500kV transmission line connecting Nghi Son 2 BOT Thermal Power Plant and 110kV projects.

On power grid investment, in the quarter, EVN and its units started 27 projects; switched on 27 110kV to 500kV grid projects (including three 500kV projects, six 220kV projects and 18 110kV projects). Urgent grid projects included energizing the power line 2 of the 500kV transmission line connecting Nghi Son 2 Thermal Power Plant to the national power system and energizing the 500kV Quang Ninh substation.

EVN expects that, in April 2021, the average daily electricity consumption reached 713.6 million kWh and the largest load capacity was 38,285 MW. Therefore, the power sector focused on performing well the task of preventing and controlling the Covid-19 pandemic and ensuring power production and supply for the economy, particularly during the National Assembly’s meetings and public holidays.

The power sector will exploit coal-fired thermal power and gas-fueled turbines according to the source configuration to tap as much as possible renewable energy; regulate hydropower reservoirs in accordance with the annual plan and ensure downstream water supply for localities. Power generation corporations will ensure the highest possible availability of power turbines during the dry season. The transmission grid will be operated safely and reliably, especially the 500kV North-South line.

Regarding construction investment, in April and in the coming time, the sector will complete commercial power generation of Turbine 2 of Thuong Kon Tum Hydropower Project; start construction of expanded Ialy Hydropower Plant and Phuoc Thai 2 & 3 Solar Power Projects; and prepare the ground and conditions for starting construction of Dung Quat Power Center Infrastructure Project. For the 500kV line 3 project, EVN will urge the construction and energize the Doc Soi - Pleiku 2 section in April 2021. It will press its units to work with relevant stakeholders to make land compensation for site clearance according to the Official Dispatch 393/CD-TTg of the Prime Minister dated March 29, 2021.

Source: Vietnam Business Forum