No power cuts until year-end: deputy minister

There will be no shortage of electricity for production and daily life in Vietnam until the end of this year, Deputy Minister of Industry and Trade Do Thang Hai said Tuesday.

There will be no shortage of electricity for production and daily life in Vietnam until the end of this year, Deputy Minister of Industry and Trade Do Thang Hai said Tuesday.

Speaking at the government's monthly press meet, Hai said the demand for electricity for people’s production and consumption activities in the first six months of 2023 was higher than the same period last year.

The total electricity produced and imported by the whole national system in June was estimated at 25,323 billion kWh, a year-on-year increase of over 3.4%, raising the six-month figure to 136,090 billion kWh (including rooftop solar power output), up 2.2%, he said.

Deputy Minister of Industry and Trade Do Thang Hai speaks at a press meet on July 4, 2023. Photo by The Investor/Nhat Bac.

The system had ensured electricity production and supply in the first four months of 2023, meeting electricity demand for production and daily life of people nationwide, Hai said.

He also acknowledged that power supply in May and June had faced many difficulties due to prolonged hot weather, increased demand, low water flows to hydropower reservoirs, and problems in the operation and repair of thermo power turbines.

“Therefore, state utility Vietnam Electricity (EVN) had to make power cuts in some localities, especially in the northern region,” he said.

In the last 10 days of June, water flows to hydropower reservoirs improved, some thermo power turbines had their problems fixed and resumed operations. This allowed the northern electricity grid to meet regional demand.

"In July, the power system is expected to continue facing operational difficulties, especially in the north, as heat waves linger and reservoir water levels remain low," Hai said.

Following directions from Prime Minister Pham Minh Chinh on ensuring safe and stable electricity supply in July and the last months of 2023, the Ministry of Planning and Investment (MoIT) has been closely monitoring the operation of the power system, he added.

The ministry has requested EVN for continuous updates on the power load situation as well as conditions for operating the power system, ensuring safe, stable and reliable electricity operation and supply for the national power system for the rest of the year.

He said the EVN has been asked to proactively develop scenarios to cope with power system problems and promptly report cases with “unusual impacts” on the assurance of power supply so that competent authorities can find solutions, he said.

The national power utility has also been asked to coordinate with electricity users, especially large consumers, to prepare scenarios and plans to adjust the power load towards ensuring power system security.

Hai said it was necessary to synchronously implement four solutions: providing enough fuel for thermal power plants, minimizing breakdowns and quickly fixing problems (if any); rational operation of hydropower sources; taking electricity saving measures; and accelerating investment in power sources and grid projects.

Regarding rooftop solar power generation, the deputy minister said that the government has directed ministries, including the MoIT, as well as other agencies and localities to review and correct investments in the energy source.

According to EVN's National Load Dispatch Center, the installation capacity of rooftop solar power in Vietnam as of March 2023 was around 7,660 MW, or 9.65% of all power sources. It is estimated to increase by 2,600 MW by 2030 under the Power Development Plan VIII.

The MoIT has submitted to the PM a proposal on incentives for solar power development at homes and official buildings. Under the proposal, households and offices that install rooftop solar panels will enjoy several incentives including tax and fee breaks and preferential loans.