The cost of electricity production is 178 VND/kWh higher than the average price.

10/31/2023 13:29 Ha Linh Print article

ANTD.VN - According to calculations by Vietnam Electricity Group (EVN), the cost of transmission, distribution - retail and ancillary services by October 2023 is about 2,098 VND/kWh, higher than the average retail electricity price of about 178 VND/kWh.

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Electricity generation costs continue to rise

EVN said that currently, in the structure of electricity production costs, the cost of electricity generation accounts for 82.8% of the cost, so fluctuations in the cost of electricity generation will greatly affect the cost of electricity production.

Update to October 2023 shows that although fuel prices have decreased compared to 2022, they are still high compared to the period of 2020 - 2021 (GBNewC imported coal prices increased 2.97 times compared to 2020, increased 1.30 times compared to 2021; HSFO oil prices increased 1.86 times compared to 2020 and increased 1.13 times compared to 2021).

Although input parameters have decreased compared to 2022, they continue to remain high compared to previous years (including input parameters for power plants using imported coal, blended coal, gas turbine power plants such as gbNewC, ICI3, HSFO oil, Brent oil).

In addition, due to the sharp decline in Nam Con Son gas output, gas-fired thermal power plants (Phu My 1, Phu My 2.1, Phu My 2.1 expansion, Phu My 4, Nhon Trach 1&2 and Ba Ria) receive a lot of Hai Thach - Moc Tinh, Sao Vang - Dai Nguyet gas and Dai Hung, Thien Ung gas with high prices, especially Thien Ung, Sao Vang - Dai Nguyet gas with very high prices.

High fuel prices have caused the cost of coal-fired thermal power plants and gas turbines to increase dramatically, while coal-fired and gas-fired thermal power plants account for 55% of the total electricity output of the entire system.

On the other hand, according to EVN, the sharp increase in foreign exchange rates is also a factor affecting the cost of electricity production. The average in 2023 is expected to increase by 4% compared to 2021.

Meanwhile, in terms of source structure, hydropower decreased by about 13.9 billion kWh, coal-fired thermal power increased by about 9.3 billion kWh, oil-fired thermal power increased by about 1.2 billion kWh and renewable energy increased by 1.3 billion kWh.

And thanks to the implementation of cost-saving and cost-reduction solutions, the costs of transmission, distribution - retail and support have gradually decreased over the years.

In 2020, the cost of these stages was 392.9 VND/kWh but is estimated to be around 347 VND/kWh in 2023.

Due to the above reasons, the cost of producing and purchasing electricity is still high. The cost of producing electricity in 2023 is estimated at about 2,098 VND/kWh, higher than the average retail price of electricity by about 178 VND/kWh.

From May 4, 2023, the retail electricity price has been adjusted up by 3%, helping EVN's revenue in 2023 increase by about VND 8,000 billion. Although EVN has partly resolved its financial difficulties, it is still very difficult to balance its finances.

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