Vietnam Power Going Cleaner as Demand Surges 16% Annually

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Researched by Industrial Info Resources (Sugar Land, Texas)--Vietnam's brilliant economic progress in the past decade has not been achieved without the accompanying problems of electrical power shortages and environmental pollution. The Asian Development Bank (ADB) and other development partners are supporting the country's sixth Power Development Master Plan, which identifies the need for new power generation, transmission and distribution projects to meet growing power demand. The ADB and the Agence Francaise de Development (AFD) are assisting in the enhancement of the environmental management capacity of the country's power sector for the sustainable development of its thermal power plants.

Thermal plants with feeds of oil, coal and gas represent 61% of the state's Viet Nam Electricity (EVN) power utility's output. EVN accounts for 8,822 megawatts (MW) (78%) of the country's total installed capacity. EVN is the sole power distributor in the country. ADB's country environment analysis found that the environmental problems in thermal power plants were partly due to poor equipment maintenance, outdated design and technology, weal capacity and institutional systems for environmental management. EVN has now introduced cleaner technology into its new coal-fired power projects.

Economic growth has created an increase in power demand of 16% per year, and the 7.5% GDP growth over the past decade has resulted in the number of people living in poverty line from 58% in 1993 to 19% in 2006. The government intends to maintain this growth until 2010 and further reduce the poverty rate to 15%.

To meet power-growth requirements in the 2007-10 period, Vietnam needs $20 billion to implement generation, transmission and distribution projects, according to EVN. In 2006, the country experienced an electricity shortage of 1.1 billion kilowatt-hours (kWh) and will experience shortages of 6.6 billion kWh in 2007; 8.6 billion kWh in 2008; 10.3 billion kWh in 2009 and 7.2 billion kWh in 2010.

As it accelerates the construction of power plants, EVN is encouraging the population to save electricity by using energy-efficient fluorescent lamps. It estimates that the replacement of 90 million lamps currently in use could cut the 2008 power shortage to 3.3 billion kWh.

There has been a spate of new power project announcement s in 2007, including the plan for the country's first nuclear power stations Bin Thuan and Phuong Ray Ninh Phuoc by 2020. The ADB has approved a $931 million loan for the 1,000-MW Mong Dong thermal power project to be completed in 2012. A second 1,200-MW plant at Mong Dong will be backed by private investors. EDF will build a $4 billion 3,600-MW plant in Hau Giang in the southern part of the country. Construction will begin in 2009, and power will be generated in 2013. Czech company Skoda Prague has signed a preliminary contract with a Vietnamese partner to build a coal-fired plant in the southeastern part of the country. The $4.6 billion 3,000-MW plant will consist of six 500-MW units. Vietnam Infrastructure will build a 600-MW plant with an investment of $700 million to $800 million in Long An. France's Alstom Hydro has signed a $270 million contract to supply all the electro-mechanical equipment for the 2,400-MW hydropower plant at Son La, which will be fully commissioned by 2012. Alstom will supply six 400 Francis turbines and generators.

These projects are some of the thermal projects in the drive to double Vietnam's generating capacity to 28,000 MW by 2010 to meet anticipated demand.

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