The highest coal-fired electricity is 1,559 VND/kWh

The price framework is issued annually as a basis for investors of power plant projects to negotiate electricity prices and sign electricity purchase contracts with Vietnam Electricity Group (EVN), ensuring that electricity prices do not exceed the price framework issued by the Ministry of Industry and Trade .

Accordingly, the electricity generation price range for coal-fired thermal power plants is 0 - 1,559.7 VND/kWh (excluding value added tax). Thus, compared to the electricity generation price range in 2022, the ceiling price of coal-fired electricity has decreased by about 200 VND/kWh (the price range in 2022 is 1,773.76/kWh).

The ceiling price for coal-fired thermal power has been reduced. Photo: Luong Bang

This price range is calculated based on the expected coal price (excluding VAT and transportation costs) of VND 1,808,000/ton. The exchange rate is VND 24,885/USD. Compared to the price range of 2022, this coal price only decreased slightly (in 2022 it was VND 1,845,000/ton) while the exchange rate of 2022 is significantly lower than the exchange rate used to calculate the price range for 2023 (in 2022 the calculated exchange rate was VND 23,090/USD).

The electricity generation price range for hydropower plants is 0 - 1,110 VND/kWh (excluding water resource tax, forest environmental service fee, water resource exploitation right fee and value added tax). The hydropower price range remains the same compared to 2022 and 2021.

According to the report of the Ministry of Industry and Trade, the list of coal-fired thermal power projects that are behind schedule and facing difficulties in changing shareholders and arranging capital includes 5 projects. The total capacity of these 5 projects is up to 7,220MW, including: Quang Tri Thermal Power Plant (1,320MW), Cong Thanh Thermal Power Plant 600MW, Nam Dinh I Thermal Power Plant 1,200MW, Vinh Tan III Thermal Power Plant 1,980MW, Song Hau II Thermal Power Plant 2,120MW.

In particular, the Quang Tri thermal power project, the investor is the Thai Electricity International Corporation (EGATi), has issued a document announcing the suspension of the project. Quang Tri province proposed to replace it with LNG power according to the document dated August 9. Many other localities are also looking to convert unimplemented coal power projects to gas power.

Coal power project owner wants to switch to gas power: We are very impatient! Coal power is almost "out of the question" for new investment, the only way is to switch to LNG power. The owner of Cong Thanh Thermal Power project reflected that although they did not request any incentives, everything was ready, but they were very impatient waiting...

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