EVN: Vietnam Electricity Sector Facing Four Major Challenges

Vietnam’s electricity sector is facing four major challenges, said General Director of the state-owned Electricity of Vietnam Group (EVN) Pham Le Thanh.

 

The first is the burden to ensure sufficient power supply for national socioeconomic development amid capital shortfall, Thanh attributed.

 

Unattractive power prices have hindered investment in the sector, he noted, elaborating that the country expects power capacity of 36,000 MW should be generated by non-EVN institutions between 2006 and 2015, but they have built power plants with a combined capacity of 6,000 MW.

 

Building a competitive power market has not yet kept up with the country’s current developments, which is blamed for stagnant power price negotiations, he assessed.

 

EVN is suffering bigger losses from selling electricity to remote areas at lower prices. Last year, the group lost VND6,295 billion (US$352.52 million), he added.

 

To deal with the difficulties, EVN is seeking the government’s approval to form a synchronic power market in combination with building primary energy markets for coal, oil and gas to ensure healthy competition among power plants.

 

The government should allow implementation of the competitive power market from the third quarter of 2010 to ensure transparent and competitive power prices. (EVN)