Power shortage could happen in Vietnam from 2019: Deputy PM

Vietnam is likely to face power shortage right in 2019 instead of 2020 or 2022 as it was warned earlier, Deputy Prime Minister Trinh Dinh Dung said.

The shortage might come sooner due to the delay of some big power projects which are from one to five years behind the schedule, Dung said at a Q&A session at the ongoing National Assembly session.

Deputy Prime Minister Trinh Dinh Dung at a National Assembly session last week. Photo: VGP

“Power shortage will become more obvious in the near future if we don’t have drastic measures to cope with,” the Deputy PM during a session where Minister of Industry and Trade Tran Tuan Anh was grilled last week.

The Deputy PM addressed some challenges, as follows:

(1) The structure of the electricity sector has been evolving over the past years, requiring an adjustment to the national power plan to 2020 with a vision to 2030 (Power Plan VII).

If the government fails to adjust the plan, it’s hard to generate enough power to meet the demand, he noted.

(2) Investment needs for power generation and transmission are huge, about US$130 billlion from now until 2030, or US$12 billion per year, including US$9 billion for power production and US$3 billion for power transmission.

The Deputy PM said it’s hard to mobilize such an amount of money for the power sector in the next decade and financial shortage remains one of the big challenges for Vietnam.

(3) The structure of the electricity sector is different among regions. Indeed, the northern and central regions consume 50% of the total power volume but produce more than 60% while the southern region consume 50% and produces 40%.

It requires both money and efforts to build the 500-kV North-South line – tranche 3, Dung urged.

(4) Power transmission network in several areas is not inline with the newly generated volume which largely comes from renewable sources.

Vietnam may face power shortage sooner than forecast. Photo: Istock

To ensure enough power for the development, the Deputy PM pointed out several tasks that should be fulfilled for the 2021-2030 period.

(i) Soon put into operation key power projects namely Thai Binh 2 Thermal Power Plant, Song Hau 1 Thermal Power Plant, Long Phu 1 Power Plant as well as speed up some others, such as Van Phong 1 Thermal Power Plant, Nghi Son, Nhon Trach Power Complexes.

(ii) Supporting gas-fueled projects namely Ca Voi Xanh and Block B, and LNG-to-power projects of Son My, Long Son, and Ca Na in the would-be Power Plan VIII.

(iii) Encouraging private investment in power transmission to soon make the supply and demand matched.