The electricity industry needs to accelerate key source and grid projects and prepare backup scenarios to avoid power shortages in 2024, according to the Prime Minister 's direction.
In the Official Dispatch dated December 25, Prime Minister Pham Minh Chinh assessed that the recent electricity supply was still inadequate, with the North experiencing a local power shortage in late May and early June.
According to the plan, the electricity production and import output in 2024 will be nearly 306.3 billion kWh, of which the rainy season accounts for 52% and the rest in the dry season.
To avoid a repeat of the power shortage next year, the Prime Minister requested the Minister of Industry and Trade, Chairman of the State Capital Management Committee at Enterprises, localities and electricity enterprises to prepare scenarios to ensure electricity supply for production, business and consumption.
"Absolutely do not let power shortages affect production, business and people's lives," the telegram stated.
One of the solutions mentioned by the Prime Minister is to speed up the progress, complete and energize the entire 500 kV line project, circuit 3, Quang Trach ( Quang Binh ) - Pho Noi (Hung Yen) in June 2024. The completion of this project will increase the power supply capacity from the South to the North to nearly double the current capacity, about 5,000 MW.
However, the Ministry of Industry and Trade needs to develop a backup plan in case this line cannot be put into operation in time, to provide enough electricity for the North.
Hanoi Electricity workers check transformer operation, 2022. Photo: Ngoc Thanh
The 500kV line 3 extension project consists of 4 component projects, with a length of 514 km connecting Quang Trach (Quang Binh) to Pho Noi (Hung Yen) with a total investment of about 23,000 billion VND. The first component project has been started by the investor, and the remaining 3 projects are expected to start construction in January next year.
The Prime Minister assigned the 500kV line 3 extension to be implemented within 1 year, from July 2023, to increase supply and reduce power shortages in the North. In fact, a transmission project takes several years of construction to be put into operation, not to mention the time to prepare investment procedures. To ensure progress, EVN has proposed to the Government a number of specific mechanisms in approving, adjusting policies and implementing project construction.
In addition to the 500 kV line 3 extension, the Prime Minister also requested PVN and TKV to speed up the progress of the Lot B gas-electricity project chain, Long Phu 1 thermal power plant, and effectively exploit thermal power plants at the Duyen Hai - Tra Vinh Thermal Power Center.
The Prime Minister reminded the Ministry of Industry and Trade about the plan to prepare for electricity production at the peak period at the end of the dry season. Power plants will have to prepare plans from the beginning of 2024. EVN, TKV and PVN will carry out contracts to supply coal and gas, avoiding fuel shortages for thermal power plants and water shortages at hydroelectric reservoirs.
The World Bank estimates the economic cost of the power outages in May and June at about $1.4 billion, equivalent to 0.3% of GDP.
For power purchase contracts for transitional renewable power projects, EVN needs to speed up negotiations with investors according to market rules, ensuring harmonious benefits and not wasting social resources, the Prime Minister requested.
The Ministry of Industry and Trade is assigned to submit to competent authorities before December 31 policies on direct electricity trading; mechanisms to encourage the development of rooftop solar power in private homes, offices, and self-produced and self-consumed industrial parks.
Local leaders reform administrative procedures and support investors in implementing power source and grid projects according to Power Plan VIII, as well as the plan to implement this plan.
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