Investors are impatient
Sharing with reporters, a representative of the investor of Cong Thanh Thermal Power Plant (Thanh Hoa) said that they are very anxiously waiting for approval to convert the project to using LNG gas fuel so that they can generate electricity before 2028.
“We have fully prepared the land, port, leveling, survey drilling, and connection lines. The investor group is already there, such as BP Group providing gas, GE providing turbine generators, and Actis Investment Fund arranging finance. Now we are just waiting for the Ministry of Industry and Trade to report to the Government and get approval so we can start construction immediately,” said the representative of the investor of Cong Thanh Thermal Power Plant.
In addition, according to this person's assessment, other power investors request to receive many incentives. For example, the Power Purchase Agreement (PPA) must ensure the purchase of 90% of the electricity produced. Some investors also request the State to guarantee the payment obligation on behalf of Vietnam Electricity Group in case EVN fails to fulfill its payment commitment according to the contract and compensate for direct damages as well as damages arising when EVN is unable to pay in the power project.
They also requested to ensure the conversion of a portion of the project's foreign currency based on the ability to balance foreign currency equivalent to the current commitment level of the State for BOT power projects (30% of project revenue).
“Meanwhile, we don't need these things,” the representative emphasized.
With the above Cong Thanh thermal power project, the investor and Thanh Hoa province have soon requested to convert it into an LNG power project.
In response to this proposal, in a document sent by the Government Office to the Ministry of Industry and Trade on July 11, Deputy Prime Minister Tran Hong Ha assigned the Ministry to preside over and coordinate with relevant agencies to handle and report to the Prime Minister on issues beyond its authority.
However, according to investors, they have not yet received any information about any working schedule with the Ministry of Industry and Trade and are very impatient.
Mr. Bui Tuan Tu, Deputy Head of the Management Board of Nghi Son Economic Zone and Industrial Park of Thanh Hoa province, said: Cong Thanh coal power project has complete legal procedures and documents.
If the proposal of the investor and Thanh Hoa Provincial People's Committee is soon approved, the project implementation will be favorable.
Cong Thanh Thermal Power is not the only project that wants to convert to LNG power to capture the trend.
According to the report of the Ministry of Industry and Trade, the list of coal-fired thermal power projects that are behind schedule and facing difficulties in changing shareholders and arranging capital includes 5 projects. The total capacity of these 5 projects is up to 7,220MW, including: Quang Tri Thermal Power Plant (1,320MW), Cong Thanh Thermal Power Plant 600MW, Nam Dinh I Thermal Power Plant 1,200MW, Vinh Tan III Thermal Power Plant 1,980MW, Song Hau II Thermal Power Plant 2,120MW.
In particular, the Quang Tri thermal power project, the investor is the Thai Electricity International Corporation (EGATi), which has issued a document announcing the suspension of the project. Quang Tri province proposed to replace it with LNG power according to the document dated August 9. Many other localities are also looking to convert unimplemented coal power projects to gas power.
Looking to LNG electricity to reduce the risk of power shortages
According to experts, the 7,220 MW of coal-fired power awaiting a solution will be difficult to complete in the context of tightening credit sources for coal-fired power.
Mr. Nguyen Thanh Son, an energy expert, said that it is difficult to implement coal power projects without arranging capital. Investors of these projects do not necessarily have excess capital, but are lacking it.
Sharing with reporters, Dr. Le Hai Hung, Hanoi University of Science and Technology, said: Converting coal power projects to gas power is an urgent issue, there is nothing to argue about. LNG power emits much less emissions than coal power, even less emissions than associated gas. We are building Thi Vai LNG import port. LNG power is quite safe for energy security in the next 10-20 years.
According to Dr. Hung, the world is moving away from coal power. In Vietnam, Decision 500 on Power Plan VIII also sets out a roadmap to reduce coal power, moving towards complete elimination. LNG power in the medium term has not been stopped.
In addition, according to Mr. Le Hai Hung, borrowing capital for LNG power projects will also be much easier than for coal power. "The World Bank and international financial institutions have stopped lending capital for coal power. Borrowing capital to build coal power plants is very difficult. Instead, financial institutions prioritize capital for renewable energy projects. Gas power can still borrow capital more easily," said Mr. Hung.
Talking about the process for investors to convert coal power projects to gas power projects, Mr. Hung proposed: The Ministry of Industry and Trade needs to support investors in the approval process.
“If any agency delays or hinders the conversion of coal-fired power projects to gas-fired power projects, it will go against the cause of environmental protection. We must create all conditions, even encourage investors to convert from coal-fired power projects to gas-fired power projects. Because the ultimate goal now is to move towards a sustainable economic development and reduce emissions," Dr. Le Hai Hung emphasized.
Believing that the procedures for converting coal-fired power projects to LNG power projects are "very slow", National Assembly Delegate Pham Van Hoa, member of the National Assembly's Law Committee, expressed: "Investors are waiting for the Ministry of Industry and Trade to approve the conversion of coal-fired power to gas-fired power. Therefore, I suggest that the Ministry of Industry and Trade should soon get involved with investors to discuss and negotiate as soon as possible."
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