Vietnam Targets to Double Power Capacity to 25,000 Megawatts by 2010

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Researched by Industrial Info Resources (Sugar Land, Texas). In its continuing push to keep electrical power generating capacity in line with increasing demand from industry and rising living standards of the country’s 82 million population, Vietnam will invest over $2.36 billion on developing power projects in 2006. The economy has been growing at a rate of 7% to 8% and that rate is expected to continue through 2010.

Demand for power has been growing at an average rate of 13% - 15% and is estimated to grow 17% in 2006 to 53 billion kilowatt-hours (kWh). Government estimates indicate that the country will need 100 billion kWh of power by 2010 and around 200 billion kWh by 2020. Electricity of Vietnam, which owns the majority of generation plants and has a distribution monopoly in the country, estimates that there will be a power shortfall of 1.1 billion kWh in 2006, rising to 10.3 billion kWh in 2009 before a plateau is reached, if no urgent measures are made to fill the power gap.

Estimated power output goals are something of a moving target as new projects solicit financing, with the World Bank as a contributing catalyst in key projects, and announce construction plans and dates. From a base of 12,000 megawatts at the end of 2005, the top estimates for 2010 are between 25,000 megawatts and 26,000 megawatts, with more cautious estimates sitting below 20,000 megawatts. For related news item see July 5, 2005 – IPPs and Foreign Investment to Feature in Vietnam’s 15,000 MW, $78 Billion Power Plan Through 2020.

Performing the groundbreaking ceremony to begin the construction of the O Mon 660 MW gas thermal power plant, south of the city of Can Thom, Deputy Prime Minister Nguyen Tan Dung said that the plant was the first of 27 projects planned by EVN for the 2006 – 2010 period with a total capacity of 10,500 megawatts. He said that Vietnam would see the completion of 56 new power plants (including small and large-scale hydro) in the next five years with a total capacity of 14,500 megawatts.

Construction of the $555 million O Mon project is being undertaken buy a consortium including Can Tho Thermal Power, consulting firm TEPSCO and Mitsubishi Heavy Industries. Of the total investment, 85% t comes from the Japan Bank for International Co-operation in the form of official development assistance (ODA). The first turbine (330 MW) is due to start operation in 2008, with the second following in 2010.

The plant is part of a planned gas-fed thermal power centre that will have a total capacity of 2,800 megawatts and will be the second largest in the country after the 3,800 MW Phu My power center, which is already in operation. The four O Mon units will have capacities of 660, 720, 700 and 720 MW.

The two power centers will serve the Mekong River Delta region, currently served by one 188 MW plant that produces 50% of the national agricultural output and 60% of fishery output. Dung said that the O Mon center would add 17% to the national power capacity in the 2006 – 2010 period. The center will be fed with 1 billion cubic meters of gas from Vietnam’s southern continental shelf.

EVN is considering plans to build another 2,800 MW gas thermal power center to be made up of four plants in Can Tho’s outlying areas.

AES and Vietnam National Coal and Mineral Industries (Vinacomin) have signed an in-principle agreement to construct a 1,000 MW thermoelectric plant in Quang Ninh province. AES is completing the feasibility study for the $1 billion coal-fired plant. Start of construction is planned for July, with completion in 2010.

In two more recent power project developments, construction has begun on the 190 MW Song Tranh 2 hydroelectric plant. The $260 million plant will come into operation in 2009, helping to reduce power shortages in the area west of Da Nang. Czech company Skoda Praha will build a 1,000 MW plant to be in operation by 2010. Details of the plant and its site will be finalized by the end of 2006.

EVN is also starting work on a number of power grid projects, which include four 500 KV, 64 x 220 KV and a series of 110 KV projects. Power grid transmission projects to facilitate import of electricity from China will be completed by the end of the year.

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