State utility Vietnam Electricity (EVN) should propose new transmission lines from Laos to Vietnam to increase electricity imports from the neighboring country, said Minister of Industry and Trade Nguyen Hong Dien.
At a Saturday meeting, the minister also required EVN to submit to the government the price mechanism for electricity imported from Laos in the first quarter of 2024.
“This will supplement power supplies for northern Vietnam, especially during the peak dry season, where there are no new large power projects set to be put into operation until 2025,” he said.
Currently, electricity imported from Laos is transmitted through 220 kV lines. At the end of September 2023, EVN poured more than VND1.1 trillion ($45.46 million) into the 45-kilometer 500 kV Monsoon-Thanh My line (section on Vietnamese territory) to transmit electricity from Laos to Vietnam. Also that month, the group proposed the Ministry of Industry and Trade allow the acceleration of electricity imports from Laos.
Under the newly approved Power Development Plan VIII and the Vietnam-Laos cooperation agreement signed in 2019, Vietnam will buy 3,000 MW of electricity from Laos by 2025 and about 5,000 MW by 2030. The import volume could increase to 8,000 MW if conditions allow.
The Prime Minister has signed off for six power plants to import electricity from Laos, with a total capacity of 449 MW, Dien added.
Vietnam imports electricity from Laos due to competitive prices compared to some domestic sources. For example, the price of electricity purchased from Lao hydroelectric plants is about 6.95 U.S cents per kWh, 2-30% lower than domestic sources.
In first the 11 months of 2023, Vietnam imported nearly 4 billion kWh from Laos and China, accounting for 1.5% of the entire system's output.