EVN proposed that the Ministry of Industry and Trade consider and submit to competent authorities the policy of importing more electricity from Laos to increase supply to the North by 2025.
According to the Power Plan VIII and the Cooperation Agreement between Vietnam and Laos in 2019, Vietnam will buy 3,000 MW of electricity from Laos by 2025 and about 5,000 MW by 2030 and can increase to 8,000 MW if conditions permit.
Vietnam Electricity Group (EVN) recently proposed that the Ministry of Industry and Trade consider speeding up the import of electricity from Laos, promptly submitting to competent authorities for approval the policy of importing electricity from wind and hydropower plants such as Nam Mo and Houay Koauan with a total capacity of over 225 MW and the connection plan with the Savan 1 and 2 wind power projects.
This is happening in the context that from now until 2025, there will be no large power source projects in operation, leading to the risk of power shortages in the North during the peak dry season in the next two years.
Updating calculations, EVN said the North may lack over 3,630 MW and an output of about 6.8 billion kWh during the peak dry season (May-July) in 2025 because very few new power sources come into operation, mainly at the end of the year.
Therefore, according to EVN, having more than 225 MW of electricity imported from Laos will significantly supplement the power source, ensuring power supply for the North in the coming years. The proposed power projects will be connected to the 220 kV lines in operation, without having to invest more in the Vietnamese grid to receive them.
On the other hand, the price of electricity purchased from Laos with hydropower plants is about 6.95 cents per kWh, more competitive than some domestic power sources, such as solar power at 7.09-9.35 cents per kWh, wind power at 8.5-9.8 cents per kWh, or gas power from domestic plants at 8.24 cents per kWh and coal power at 7.23-8.45 cents per kWh.
Electricity workers maintain equipment and systems at a transformer station. Photo: EVN
In response to EVN's proposal on the connection plan with the Savan 1 and 2 wind power plant clusters, the Ministry of Industry and Trade said that it would be considered simultaneously with the policy of importing electricity from these plants. The assignment of the investor to build the connection line will be carried out after the competent authority approves the electricity purchase and sale policy and adds related grid projects to the power development plan. The Ministry of Industry and Trade also urged the Group and the investor to study and propose a connection plan suitable to the approved Power Plan VIII.
The Ministry also requested EVN to complete the dossier approving the electricity purchase and sale policy to submit to competent authorities for consideration and decision.
By August, the Prime Minister had approved the policy of importing about 2,698 MW of electricity from Laos, of which EVN had signed power purchase agreements (PPAs) with investors with a total capacity of 2,240 MW.
Currently, there are 6 power plants that have been approved by the Prime Minister to import electricity from Laos, with a total capacity of 449 MW. Of these, 4 projects (capacity of 249 MW) are being negotiated by the Electricity Trading Company - a unit under EVN - with investors for PPA. The remaining investors of the 2 hydropower plants Nam Kong 1 (160 MW) and Nam Mouan (100 MW) have announced to stop selling.
In addition to Laos, Vietnam also buys electricity from China via the 110 kV line. During the recent hot season in the North, the amount of electricity imported from Laos and China was about 11 million kWh per day, equal to 1/10 of the demand in this region.
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