top of page

2023: Electricity source in Vietnam

In the first quarter of 2023, the Electricity of Vietnam Group has ensured a safe and continuous supply of electricity, serving socio-economic development and meeting the people's daily needs.

First quarter's performance

In March 2023, the electricity production of the whole system reached 23.22 billion kWh, a decrease by 0.7% compared to the same period in 2022. Accumulated in the whole first quarter, the electricity output of the whole system reached 61, 83 billion kWh, a decrease by 1.6% over the same period. The ratio of mobilising some types of power sources to the total electricity output of the whole system is as follows:

  • Hydroelectricity reached 15.38 billion kWh, accounting for 24.9%.

  • Mobilised coal-fired power reached 28.03 billion kWh, accounting for 45.3%.

  • Gas turbines reached 7.14 billion kWh, accounting for 11.6%.

  • Renewable energy reached 10.22 billion kWh, accounting for 16.5% (of which solar power reached 6.45 billion kWh, wind power reached 3.47 billion kWh).

  • Imported electricity reached 953 million kWh, accounting for 1.5%.

Power transmission output in March 2023 reached 17.91 billion kWh. Accumulated in the first quarter of 2023, transmission power output reached 48.27 billion kWh, a fall by 1.4% over the same period in 2022.

In March 2023, the Earth Hour 2023 campaign with the theme "Save electricity - Make it a habit" was held with in-person activities combined with online, which is also the message of the Electricity Saving Program for the period of 2023 - 2025 issued by the Prime Minister. With this message, the program wishes all people, communities and businesses nationwide to join hands to protect the environment, save energy, save electricity, towards a green future, towards the goal of net zero emissions by 2050 according to Vietnam's commitment at the 26th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP 26). After 1 hour of turning off the symbolic lights from 20:30 to 21:30 on March 25, 2023, the whole country saved 298,000 kWh of electricity (equivalent to about 555.6 million VND ~ $24000).

Important decision on sustainable energy price

The Ministry of Industry and Trade requested EVN to urgently coordinate with investors of wind and solar power plants to forward agreements and unify electricity prices before March 31, 2023 in order to soon put the plants into operation, avoiding waste resources.

Currently, there are 84 renewable energy projects (with a capacity of more than 4,676 MW) that are behind schedule of commercial operation compared to the plan. In which, 34 transition projects (28 wind power projects, 6 solar power projects) with a total capacity of nearly 2,091 MW have been completed and tested. These projects are not entitled to a fixed preferential electricity price (FIT price) for 20 years according to previous decision.

As of April 14, 2023, there were 20 unfinished projects submitted to the power buyer, in which, 4 projects have enough documents to be able to proceed to the negotiation of power purchase and sale contracts, and the other 16 projects were asked to supplement the missing documents. This is a more positive signal than only 4-5 applications were sent as of March 31, 2023. However, the completion of the negotiation of the power purchase and sale agreement to get the electricity bill paid is not as fast as expected. As of April 14, 2023, the Ministry of Industry and Trade had not yet responded to EVN's proposals in conducting negotiations with investors in unfinished projects when there are legal documents that are no longer valid or there is no specific guidance on contract duration and economic life of projects in this unfinished group.

Due to this complication, many project investors are struggling financially. For example, Nam Binh Wind Power Joint Stock Company - the investor of Nam Binh 1 Wind Power Plant Project, sent an official dispatch to the Ministry of Industry and Trade, EVN, and the Electricity Trading Company (EPTC) requesting permission to do allow Nam Binh 1 Wind Power Plant (Dak Nong) to be temporarily put into commercial operation, and the recorded power output will be paid at a price equal to 50% of the price bracket for inland wind power plants (issued under Decision No. Decision No. 21/QD-BCT dated January 19, 2023 of the Ministry of Industry and Trade), during the time of negotiating and negotiating electricity generation prices with EVN. This is the first enterprise to apply for electricity generation price agreement. With an investment value of over VND 1,000 billion (~$43million), of which loans from commercial banks account for about 80%, from November 1, 2021 until now, the investor has to maintain the management and operation of the Nam Binh Wind Power Plant as an official power generation project. In particular, the investor has to pay the principal and interest on the loan with an amount exceeding its ability to pay because the project has no revenue source.

The situation of some renewable energy investors or the obstacles that have not been fully resolved by the authorities are warning signals of a decline in investment in renewable energy at this stage. It hence requires urgent actions from the government to support the future development of sustainable energy in Vietnam.

source: the Internet



bottom of page