The precious electricity supply is not only the result of significant investment, but also the sweat, sacrifice, and sometimes even blood of those involved. However, while obtaining electricity is difficult, using it safely, economically, and efficiently is even more crucial. In the national electricity consumption structure, and in Thanh Hoa province in particular, approximately 60% is used for industrial production. The collaboration of businesses in managing electricity demand and using electricity economically is one of the effective solutions, benefiting both businesses and working together with the electricity sector and the government to overcome difficulties.
Staff at the Nong Cong Operations Center inspect the safety of transmission system equipment.
Large businesses volunteer
Thanh Hoa currently leads the country in cement production, with a total capacity of 24.4 million tons per year. Meanwhile, cement production is one of the industries that consumes a record amount of electricity. However, all four cement companies in the area have voluntarily and readily participated in the Demand Side Management (DSM) program, implementing demand response (DR) measures as encouraged by Thanh Hoa Power Company.
Long Son Cement Company (Bim Son town) currently uses a power source with a total installed capacity of 153.8 MW. According to the factory's Production Director, Truong Van Loi, when the production lines operate at full capacity, the company's total annual electricity consumption reaches 500-600 million kW. In monetary terms, the company spends 700-800 billion VND on electricity annually. "Electricity costs currently account for 18-20% of the product's cost. Therefore, we have explored all methods to reduce production costs, thereby increasing the price competitiveness of our products; among which, reducing electricity costs is a top priority," said Mr. Truong Van Loi.
Along with solutions such as installing variable frequency drives for motors to reduce electricity consumption; replacing old machinery with modern, less energy-consuming technology, Long Son Cement Company has maintained the signing of memoranda of understanding and voluntarily participated in the DSM/DR program since 2019.
The Demand Side Management (DSM) program is a set of technical, technological, economic , and social solutions aimed at supporting electricity customers and power companies in producing, selling, and using electricity efficiently and economically. The DSM program includes both direct and indirect activities of electricity consumers, and this process is encouraged by electricity suppliers (supply side) through policy mechanisms with the goal of redistributing electricity demand into peak, off-peak, and normal hours to help level the electricity load curve, increase the load factor of the power system, and optimize energy efficiency. |
“Regarding the approach, there will be close sharing and coordination between the enterprise and the supplier, Thanh Hoa Power Company. During the peak season from April to July each year, the enterprise will proactively calculate the most suitable and optimal operation of the production line system to proactively shift production from peak to off-peak hours, limiting the operation of equipment that is not really necessary during the hours of 9:30 AM - 11:30 AM and 5 PM - 8 PM. This not only contributes to reducing the peak load but also helps the enterprise save 15-20% of electricity costs due to price differences. Especially during the periods of intense and widespread heat this summer, on June 19-20, the company participated in adjusting the electricity load twice, each time regulating the power capacity by 30 MW during the evening peak hours, contributing to reducing pressure on the power system during that time,” said Production Director Truong Van Loi. Please provide more information.
As the youngest enterprise in Thanh Hoa's cement industry, immediately after achieving stable operation, starting in 2024, Dai Duong Cement Joint Stock Company (Nghi Son Economic Zone) also joined the Demand Response (DR) program when it was implemented by Thanh Hoa Power Company. Mr. Pham Duc Luyen, Deputy Director of Production in charge of the factory at Dai Duong Cement Joint Stock Company, shared: “This year, the company's electricity output has doubled compared to the same period last year due to the completion and synchronized operation of the production lines. With high consumption volume, the company considers saving electricity as a continuous and especially important task.”
“We have implemented a rational production plan, shifting the power consumption of high-power equipment such as fan motors, water pumps, and air compressors to peak hours at noon (12:00 PM - 3:00 PM) and in the evening (9:00 PM - midnight), minimizing the operation of electrical equipment without load…,” added Deputy Production Director Pham Duc Luyen.
Along with cement, steel production also consumes a large amount of electricity. At VAS Nghi Son Group Joint Stock Company (Nghi Son Economic Zone), the Demand Response (DR) program has been implemented in collaboration with the electricity sector since 2019. According to Mr. Trinh The Dung, Deputy General Director of VAS Nghi Son Group Joint Stock Company, as a large electricity consumer with nearly 832 million kWh consumed in 2023, VAS Nghi Son understands the importance of electricity in production. Therefore, over the years, the company has always cooperated well with the electricity sector to save electricity and participate in the DR program.
Demand Response (DR) is a power demand management program designed to encourage customers to proactively reduce their electricity consumption based on electricity pricing signals or incentive mechanisms, as required by the DR program implementing unit. Simply put, DR encourages business customers to limit electricity use during peak hours and shift to off-peak hours. |
“Before the hot season, the company and Thanh Hoa Power Company held a direct meeting to develop a plan for electricity usage and power regulation. Limiting electricity usage during peak hours will help the power system maintain stable operation. When the quality of electricity and the reliability of power supply are ensured, the factory's production activities will also be more favorable. On June 19th, VAS participated in one electricity load adjustment with a regulated capacity of 45 MW during the evening peak hours, corresponding to 40% of the company's total power consumption,” Mr. Trinh The Dung said.
Furthermore, to proactively manage production during the hot season, VAS Nghi Son has proactively developed solutions for efficient and economical electricity use, ensuring that the registered power capacity and load profile in the electricity purchase contract are adhered to; shifting the power consumption of high-power consuming equipment such as fan motors, water pumps, and air compressors.
The new mission is effective and has great potential.
The Demand Side Management (DSM/DR) program has been implemented in many countries around the world for many years. In Vietnam, the DR program is implemented by the Ministry of Industry and Trade according to Circular 23/2017/TT-BCT, which requires the Vietnam Electricity Group (EVN) and related individuals and organizations to implement it, especially customers on the list of "key energy-consuming facilities".
The DSM/DR program targets key energy consumers with consumption of 1 million kWh/year or more, including those on the list of key energy-consuming facilities as issued annually by the Prime Minister.
Nationwide, thanks to the cooperation of over 13,000 large electricity-consuming enterprises implementing the Demand Side Management (DSM/DR) program – by limiting and reducing electricity consumption during peak hours and shifting it to off-peak hours – the peak load of the national power system has been reduced, leading to more efficient electricity use and ensuring electrical safety, especially during the peak dry season (from April to July each year) when electricity demand is high. |
According to Thanh Hoa Power Company, to implement this program, the company proactively works annually with large customers with electricity consumption of 1 million kWh/year or more to promote and encourage their participation in load adjustment programs, shifting loads away from peak hours. Currently, all 209 large industrial customers in the province are participating in this program.
This summer, based on directives from the Government, the Ministry of Industry and Trade, the People's Committee of Thanh Hoa province, Vietnam Electricity Group, and the Northern Power Corporation, Thanh Hoa Power Company organized a customer conference on electricity supply, demand management, and energy saving in 2024. This was not only an opportunity for the company to share information on the results of electricity supply in 2023 and plans for 2024, but also a chance for the company and its customers to discuss and find solutions to improve the effectiveness of coordinating participation in the load adjustment program, thus contributing to national energy security.
“We proactively informed customers about the electricity supply situation, plans to ensure electricity during the hot season of 2024, the DSM/DR program, electricity saving measures, and discussed and agreed with customers in a spirit of understanding, sharing, and voluntary participation in shifting production loads during peak hours in the summer of 2024, ready to operate diesel generators when the electricity supply system faces difficulties,” said Mr. Hoang Hai, Director of Thanh Hoa Power Company.
For example, during the prolonged extreme heatwave this summer, based on the power allocation from the Northern Power Corporation to Thanh Hoa province during peak hours such as noon (12:00 - 15:00) at 1,250 MW and in the evening (21:00 - 24:00) at 1,134 MW, the Thanh Hoa Power Company's dispatching department calculated that the peak power of the entire province could reach Pmax at noon at 1,382 MW and Pmax at night at 1,482 MW. Therefore, Thanh Hoa province would have to reduce power consumption by 132 MW to 348 MW.
Long Son Cement Company collaborates with the electricity sector to forecast, adjust, and shift load, thereby saving electricity.
Based on this, to ensure the safety of the power system and stable power supply to meet the needs of the people during hot weather, Thanh Hoa Power Company has announced and coordinated the implementation of several Demand Response (DR) events with VAS Nghi Son Joint Stock Company and Long Son Limited Liability Company. The participation of these 110kV customers in the program, reducing their electricity consumption by 40-50%, has contributed to ensuring continuous, stable, and safe power supply, while also limiting incidents on the power system and improving the quality of service this summer in the province.
Recently, Thanh Hoa Power Company also organized a conference to express gratitude to customers with outstanding achievements in electricity demand management and demand response (DR) in 2024. The voluntary participation of businesses has further contributed to demonstrating responsibility and a spirit of community engagement, building a strong relationship between electricity suppliers and users for the common development of society.
Currently, Vietnam is implementing a voluntary, non-commercial Demand Response (DR) program. Customers participate primarily on a cooperative and voluntary basis, receiving several benefits in return, such as: being notified as soon as possible of power restoration in case of power outages; being included in the priority list for guaranteed power supply; receiving annual appreciation gifts; and receiving free labor for transformer maintenance and other customer care services.
The Ministry of Industry and Trade is currently studying the issuance of financial mechanisms to encourage businesses to participate more actively in Demand Side Management (DR) programs. This aims to harmonize the interests of businesses and the state, and attract intermediary organizations and customers to participate in the DR market in the future. If the mechanisms are implemented more clearly, or even "legalized," DSM/DR will encourage and motivate businesses to invest more in technology and equipment to more effectively participate in this program. This is also a requirement emphasized by the Prime Minister in Decision 279/QD-TTg approving the National Program on Electricity Demand Management for the period 2018-2020, with a vision to 2030, which is to "build and fully complete the legal framework to implement the national program on electricity demand management."
Text and photos: Minh Hang
Lesson 3: Prevent electricity waste from becoming a "disease".
Source: https://baothanhhoa.vn/to-quoc-can-dien-nhu-co-the-can-mau-bai-2-chuong-trinh-dsm-dr-ich-loi-doi-ben-221676.htm
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