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Ministry of Industry and Trade proposes to import wind power from Laos

VnExpressVnExpress08/03/2024


The Ministry of Industry and Trade proposed that the Prime Minister approve the policy of importing electricity and allowing grid connection to Truong Son wind power plant from Laos to Vietnam.

Late last year, Vietnam Electricity (EVN) proposed that the Ministry of Industry and Trade submit to the Prime Minister the above policy to reduce the risk of power shortages in the North. In an official dispatch to the Government dated March 6, the Ministry of Industry and Trade assessed that importing electricity from the Truong Son wind power project (Laos) with a capacity of 250 MW to Vietnam is consistent with the electricity import policy under the Agreement signed between the two governments.

The total power capacity approved for import in Laos by 2025 is about 1,977 MW, lower than the scale of 3,000 MW according to the signed agreement, according to EVN.

The import and connection of 220 kV lines is also considered by the Ministry of Industry and Trade to be in line with the Power Plan VIII. According to the Plan, the total capacity of electricity imported from Laos could reach 5,000-8,000 MW by 2030, increasing to 11,000 by 2050. At the same time, the electricity industry also plans 550 km of backup lines for load growth and development of regional sources, including imports.

A wind power project in Ninh Thuan. Photo: Quynh Tran

A wind power project in Ninh Thuan . Photo: Quynh Tran

The Ministry of Industry and Trade assessed that importing electricity from Laos to Vietnam is necessary, will increase the ability to ensure supply, reduce the risk of power shortage in the North in 2025 and the following years.

The North may lack about 3,632 MW of power consumption during the peak dry season (May-July). In case of extreme water flow, in 2025 there will be a power shortage in the North, with a shortfall of about 6.8 billion kWh in May, June, and July of 2025. In the period of 2026-2030, with the progress of power sources being deployed, the North will only receive very little additional power, not enough to meet the annual increase in load demand.

The Central and Southern regions can ensure electricity supply, but due to the lack of backup sources, there may be a power shortage in 2025 if unfavorable factors occur at the same time.

"The lack of capacity during the peak dry season months in the North may continue to occur," the Ministry of Industry and Trade forecasts.

The Truong Son wind power project, with a capacity of 250 MW, of the Viet Lao Energy Investment Joint Stock Company is expected to operate in the fourth quarter of 2025. If the import policy is approved, this project will be connected to the 220 kV Do Luong transformer station (Nghe An) to conduct electricity to Vietnam.

To meet the schedule and operation time in the fourth quarter of 2025, the investor will complete the entire grid connection project from Truong Son wind power plant (on Vietnam territory) with its own capital.

"The fact that the investor invests in the infrastructure connecting the part in Vietnam instead of EVN will help EVN reduce part of the investment costs and pressure on the project's progress until 2025," said the Ministry of Industry and Trade.

In addition, the price of imported electricity will be implemented according to the Agreement between the two governments, EVN will negotiate with investors to ensure that it does not exceed the ceiling, according to the Ministry of Industry and Trade.

Previously, the investor of this project sent a proposal to sell electricity to EVN with a ceiling price of 6.95 cents per kWh for wind power projects from Laos to Vietnam, for projects operating commercially before December 31, 2025. This level is assessed by EVN as much more competitive than domestic wind power sources operating commercially before November 1, 2021, with onshore wind power at 8.5 cents and offshore wind power at 9.8 cents per kWh.

Compared to the transitional wind power sources currently applying the Ministry of Industry and Trade's electricity price framework of 6.42-7.34 cents per kWh (1,587-1,816 VND), the price of electricity imported from Laos is higher.

In addition to the Truong Son project, EVN recently said it has received proposals from 7 Lao wind power projects, with a total capacity of nearly 4,150 MW, wanting to sell electricity to Vietnam. Of these, the capacity that Lao investors proposed to sell before 2025 is more than 682 MW, the remaining after this time.

To draw electricity from Laos, in addition to the 500 kV Monsoon - Thanh My line invested in from September 2023, EVN proposed to add other grid and connection projects, including the 220 kV and 500 kV double-circuit lines from the border to Lao Bao, to the Power Plan VIII and the plan to implement this plan.

Phuong Dung



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