Electricity shortage looms as key power projects delayed

Difficulties are likely to linger despite Vietnam’s electricity supply efforts as new slow-moving power generation sources cannot match increasing demand, said an industry report.

This June and July - the peak of the dry season - are likely to witness power supply shortages, according to the National Steering Committee on Electricity Development's report on the implementation of projects in the amended National Power Development Plan (PDP VII).

During the peak of the dry season, hydropower plants in the country supply less, while electricity transmission from the southern and central regions to the north is limited due to the national transmission system, the report noted.

Though the central and southern regions have already managed enough electricity supply for the whole period of 2022 - 2025, there are likely cases in which electricity demand grow in line with a high development scenario or major planned power generation sources are behind schedule, it added.

As for updates on the situation across the country, the report said work has started on the expansion project of Hoa Binh hydropower plant in the north, invested by state utility Vietnam Electricity (EVN). Some landslides at the foundation have just taken place, requiring time to fix, but construction would resume soon.

In the central region, work started this May on the expansion of the Ialy hydropower plant. However, the project has fallen behind schedule due to procedures needed for changing land use purposes. Quang Trach 1 thermal power plant is also under construction, expected to begin commercial operations in 2025.

A number of projects are implementing investment steps, including Quang Trach 2 thermal power plant, expected to switch from coal-fired to gas-fired power and raise its capacity from 1,200 MW to 3,000 MW; O Mon power center, which includes the O Mon 3 thermal power plant proposed for official development assistance loans, the O Mon 4 coal-fired plant that has completed international bidding procedures for its EPC package; Dung Quat power center that includes Dung Quat 1 and 2 thermal power plants; Tri An hydropower plant expansion; and Bac Ai hydropower generation and storage project.

Petrovietnam is currently carrying out nine major projects with a total capacity of 8,100 MW, but all are facing obstacles, therefore they cannot be completed as scheduled, according to the report.

It detailed that Thai Binh 2 thermal power plant is dealing with legal difficulties and has completed its first oil burning and connected to the national grid. Song Hau 2 thermal power has completed 99.99% and signed a power purchase agreement to prepare for commercial operations. Long Phu 1 thermal power plant is undergoing some negotiations with subcontractors in construction.

State-run mining group Vinacomin is implementing four projects with a total capacity of 2,950 MW, but they are facing some obstacles. Among these, Cam Pha 3 and Hai Phong 3 projects cannot continue.

The Ministry of Industry and Trade is also managing and monitoring 20 thermal power plant projects, carried out in the build-operate-transfer (BOT) form, with a total capacity of 26,000 MW. Six have been put into commercial operation, two others are under construction, two projects have signed BOT contracts and the investors are making financial arrangements.

The 10 others are independent power plant (IPP) projects, designed with a total capacity of 11,092 MW, but all have fallen behind schedule, according to the report.

According to the committee, the country’s total installed power generation capacity has so far reached 76,620 megawatts, almost 7,500 MW higher than in 2020. Of the supply, renewables account for 27% with 20,670 MW.