Power shortages unallowable in any case: PM Chinh

Vietnamese Prime Minister Pham Minh Chinh has instructed government agencies not to allow a repetition of power shortages under any circumstances in the year ahead.

The prime minister made the request at a meeting with concerned parties late on Saturday where he gave directions related to power sources, transmission, distribution, energy efficiency, and power pricing.

At his demand, Vietnam Electricity (EVN), which holds the monopoly over power distribution, will need to provide detailed plans on electricity supply for every quarter, with a focus on the dry season, in an effective and predictable manner.

Deputy Prime Minister Tran Hong Ha was asked to direct government agencies to remove power-related hurdles and put forward issues beyond his jurisdiction for resolution.

After many years, Vietnam faced a critical power shortage in early summer this year, affecting thousands of manufacturers and millions of households, as reservoirs in the northern region dried up.

To quench the electricity thirst, more coal was burnt, sending its proportion of the country’s total power output up to nearly 50% in the first seven months of this year, followed by hydropower with 22.9%.

Two energy experts told The Investor that the country, which is one of the fastest-growing economies in Asia, is set to face power shortages next summer and beyond as a dozen new plants have been either delayed or canceled.

A survey in June by the EuroCham in Vietnam showed that some 60% of the surveyed businesses felt the impact of the power shortages on their operations.

At a dialogue with PM Chinh on October 16, representatives of the foreign business community expressed their concerns over power supply and access to renewable energy.

John Rockhold, chairman of AmCham Hanoi, urged the government to focus on feasible and bankable projects to ensure increasing power demand is met. He also proposed more private sector engagement in this field.