The Vung Ang 1 coal-fired power plant in central Vietnam has used up most of its stocked coal while insufficient supply continues, putting its operation at risk.
At present, the amount of coal reserved at the 1,200-megawatt plant in Ha Tinh province is enough for just five days, much lower than the regulated duration of one or two months, said an anonymous source.
The Vietnam Coal and Mineral Industries Group (TKV), a main coal supplier for thermal power plants in the country, has been struggling for enough supply nationwide, but shortage is looming across the country.
PV Power, the power unit of state-run Petrovietnam and owner of Vung Ang 1, has entered talks with foreign suppliers. According to the company, the import price is three to four times higher than the TKV price.
“Because of such higher costs, PV Power wants Vietnam Electricity (EVN) to provide some assistance through its power purchase price this year,” a PV Power executive said.
Earlier this month, EVN said the amount of coal supplied to its thermal power plants fell short of the contractual amount. Insufficient coal supply, coupled with low reserve, forced many of the plants to operate under capacity or shut down temporarily in late March.
This situation has made the national grid short of 3 gigawatts, according to EVN.
TKV has attributed the coal shortages to the Covid-19 pandemic, which rendered its coal mines understaffed, and the Russia-Ukraine conflict, which disrupted coal supply in the international market.
On April 2, Vietnam's Minister of Industry and Trade Nguyen Hong Dien met with South African Ambassador to Hanoi, Mpetjane Kgaogelo Lekgoro, to discuss coal imports from South Africa. Dien hoped these imports could be delivered to Vietnam right this month or May.