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EVN proposes to import wind power from Laos

Việt NamViệt Nam19/12/2023

Vietnam Electricity Group (EVN) has just sent document No. 7486/EVN-KH+TTD to the Ministry of Industry and Trade regarding the policy of importing wind power projects from Lao PDR to Quang Tri province, Vietnam.


A wind power project has come into operation in the mountainous district of Huong Hoa, Quang Tri province. Illustrative photo: Nguyen Ly/VNA

Specifically, EVN proposed that the Ministry of Industry and Trade appraise and submit to the Prime Minister the policy of importing electricity from the Truong Son wind power plant, and supplement the planning of power lines for connection. The price of purchasing electricity from this project is 6.95 US cents/kWh, equivalent to about 1,700 VND/kWh.

The Ministry of Industry and Trade said it has sent a document requesting ministries, branches and localities to give their opinions on the policy of purchasing wind power from the Truong Son wind power plant, with a capacity of 250 MW from Bolikhamsai province (Laos) to Vietnam as proposed by the Vietnam Electricity Group (EVN).

According to the Ministry of Industry and Trade, this plant will be operational in the fourth quarter of 2025. The investor has committed to apply the ceiling price of electricity imported from Laos to Vietnam for wind power plants of 6.95 US cents/kWh (equivalent to about 1,700 VND/kWh).

"To import electricity from this plant to Vietnam, a new 220 kV double-circuit line with a length of 75 km will be built from the 220 kV transformer station of Truong Son wind power plant to the 220 kV feeder at the 220 kV transformer station of Do Luong in Nghe An province, Vietnam," said the Ministry of Industry and Trade.

To meet the project completion schedule in 2025, the project investor - Viet Lao Energy Investment and Development Joint Stock Company has sent a document to Vietnam Electricity Group proposing to sell electricity from this project to Vietnam. Accordingly, the investor proposed to invest in the entire grid connection project to connect Truong Son wind power plant to Vietnam's electricity system using the project's capital.

Previously, in a report to the Ministry of Industry and Trade, EVN said: The governments of Laos and Vietnam have agreed to import a minimum of electricity from Laos to Vietnam by 2020 with a capacity of about 1,000 MW. The amount of imported electricity by 2025 is about 3,000 MW and by 2030 about 5,000 MW. As of the end of October, the Prime Minister has approved the policy of importing electricity from sources in Laos with a total capacity of 2,689 MW.

"EVN has signed 19 power purchase agreements (PPAs) to purchase electricity from 26 Lao power plants with a total capacity of 2,240 MW. Of these, 7 projects have been put into commercial operation with a total capacity of 806 MW and it is expected that by 2025, an additional 1,171 MW can be put into operation," said the Ministry of Industry and Trade.

According to the report, up to now, the total power capacity in Laos that has been approved to import electricity to Vietnam and can be put into operation by 2025 is only about 1,977 MW, much lower than the import scale according to the memorandum of understanding.

At the meeting on cooperation in electricity and coal trading between Laos and Vietnam organized by the Ministry of Industry and Trade last week, Minister of Industry and Trade Nguyen Hong Dien said: Energy security, especially electricity and primary fuels (coal, gas) for electricity production, plays an extremely important role in the economy. In particular, the import of electricity and coal from foreign countries, including Laos, is very important.

Minister Nguyen Hong Dien said he has directed EVN and the National Power Transmission Corporation to focus on implementing the construction and completion of the 500 kV line 3 from Quang Trach to Pho Noi on schedule and urgently complete the transmission line from Laos to Vietnam according to the approved schedule.

The Electricity Regulatory Authority is assigned to urgently complete legal documents related to guiding the purchase and sale of electricity from abroad, especially projects from Laos, and together with the Electricity Authority and EVN, develop a framework for electricity import prices from Laos in 2025, and submit it to the Government in the first quarter of 2024.

Regarding coal imports, the Vietnam National Coal-Mineral Industries Group and the Northeast Corporation were assigned to propose a specific mechanism for coal imports, especially from Laos, according to the intergovernmental agreement to submit to the Prime Minister for consideration and decision in December. These two units also have a mechanism to propose to the Lao Ministry of Energy and Mines, the Lao Embassy in Vietnam and Lao coal production and supply enterprises to report to the Lao government to reduce coal export tax and related taxes and fees to reduce the cost of coal exports to Vietnam.

According to Baotintuc.vn



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