Efforts to ensure adequate electricity supply for the economy in 2025 and beyond

NDO - On the morning of October 19, at the Government Headquarters, Prime Minister Pham Minh Chinh chaired a meeting of the Government Standing Committee with relevant ministries, branches and units on the situation of ensuring electricity supply from now until the end of the year, 2025 and the following years.

Also attending were Deputy Prime Ministers Tran Hong Ha, Le Thanh Long and Ho Duc Phoc.

Speaking at the opening of the meeting, Prime Minister Pham Minh Chinh emphasized that to ensure economic growth of about 7%, electricity growth must be guaranteed at 10% and next year must be at least that high. Our country is striving to industrialize, modernize, and develop the country, and it is impossible to have a power shortage. Therefore, ministries, branches, and units must prepare early, from afar, and learn from experience in electricity management during the dry months of 2023. The Prime Minister emphasized the spirit of resources originating from thinking, motivation originating from innovation, and strength originating from the people; there must be a long-term vision in solving this problem.

According to the Prime Minister, in the investment of strategic infrastructure, especially the upcoming implementation of the North-South high-speed railway project, or current highway projects, it is necessary to mobilize the entire political system to be able to do it. We must be bold in doing it, in fact, this work is being implemented effectively, with the spirit of serving the people and the country.

The Prime Minister affirmed that we are determined not to have a power shortage in 2025 because if there is a power shortage, no investor will want to come in. That affirms that we have said we will do it, committed to it and will do it, said we will not have a power shortage, we will not have a power shortage, creating trust for investors, people and businesses. The current issue that needs to be discussed is to have a fundamental solution to ensure power for the coming years.

The Prime Minister requested that the information and propaganda on this issue must be accurate and objective; at the same time, he praised EVN and relevant agencies for their efforts in managing and adjusting necessary and appropriate solutions in the past time, determined not to let there be a power shortage for 2024 and in general. "Up to this point, it can be affirmed that we will achieve this goal. We are determined to carry out the construction of the 500kV Line 3, Quang Trach - Pho Noi, in 6 months, and in 6 months, we have done it. This is the spirit of saying what you say is doing, committing to doing it" - said the Prime Minister.

Prime Minister Pham Minh Chinh gave instructions at the meeting (Photo: Tran Hai).

The Prime Minister raised the issue that in 2025, according to calculations, there will be a shortage of more than 2,000 MW, and further, from 2026 onwards, with the economic growth rate, electricity must be 1.5 times higher, so first of all, we must solve the institutional issue; the Power Plan VIII must be adjusted; diversify power sources, focus on researching offshore wind power projects; overcome the remaining consequences, especially the invested power sources that are stuck. The viewpoint is that the Government is consistent, consistent, and the leadership and direction on electricity supply is always one step ahead, the problem is that sometimes, the operating agencies are jerky, so we need to learn from this experience.

The Prime Minister requested the Ministry of Industry and Trade to actively amend laws and regulations related to the electricity sector; the Ministry of Natural Resources and Environment to guide procedures for converting forest land for electricity projects; the State Capital Management Committee at Enterprises to promote its role as the agency managing and using capital of corporations...

* According to Vietnam Electricity Group (EVN), in the first 9 months of 2024, EVN has ensured sufficient electricity supply to serve socio-economic development and people's daily needs in the context of very high electricity demand growth due to continued economic recovery. Of which: electricity production and import in the first 9 months reached 232.8 billion kWh, up 10.97% over the same period in 2023; commercial electricity reached 208.3 billion kWh, up 11.32% over the same period in 2023. Regarding direction and operation: EVN has closely coordinated with the National Electricity System and Market Operation Company Limited (NSMO) to continue to strictly implement the directions of the Government, the Prime Minister, and the Ministry of Industry and Trade on ensuring sufficient electricity supply, regulating and mobilizing hydropower plants to both meet electricity supply requirements and carry out flood reduction for downstream areas.

Representatives of leaders of ministries and branches attended the meeting of the Government Standing Committee on ensuring electricity supply (Photo: Tran Hai).

Regarding fuel assurance for electricity production: EVN has coordinated well with TKV and Dong Bac Corporation in providing coal for power plants, prioritizing the maximum use of domestically produced coal to increase domestic production according to the direction of the Prime Minister; closely coordinated with PVN/PVGAS in providing natural gas and LNG for electricity generation.

Regarding fuel preparation (coal, gas, LNG) for power generation in 2025: accordingly, regarding coal supply, EVN will coordinate well with TKV and Dong Bac Corporation to provide enough coal for EVN's power plants and Power Generation Corporations (GENCOs).

Regarding the supply of natural gas and liquefied petroleum gas (LNG): According to Document No. 5500/DKVN-D&NLTT dated August 1, 2024 of the Vietnam National Oil and Gas Group (PVN), the ability to supply natural gas in 2025 will decrease sharply compared to previous years.

In the last months of 2024, EVN will continue to effectively implement the tasks and solutions directed by the Prime Minister, the Ministry of Industry and Trade, and the State Capital Management Committee at Enterprises and closely coordinate with the corporations and groups: PVN, TKV, Dong Bac Corporation, and PVGas to ensure adequate electricity supply in the last months of 2024.

In the last 3 months of the year, it is expected that: Electricity production and import will reach 77.06 billion kWh, up 8.5% over the same period; the total for the whole year of 2024 is estimated at 309.91 billion kWh, up 10.36% over 2023 and reaching 99.8% of the annual plan. Commercial electricity is estimated at 67.74 billion kWh, up 6.02% and the total for the whole year of 2024 is estimated at 276.04 billion kWh, up 9.1% over 2023.

Meeting scene (Photo: Tran Hai).

In addition, the Group is also coordinating with NSMO to develop a plan for operating the power system and supplying electricity in 2025 with the following scenarios:

Baseline scenario: load demand is about 339.17 billion kWh, up 9.4% compared to 2024. Test scenario (to prepare solutions to ensure electricity in case the economy continues to recover strongly): load demand is about 350.97 billion kWh, up 13.2% compared to 2024. According to EVN's preliminary assessment, with the Government's drastic directions and early-prepared solutions, electricity supply in 2025 will still be basically met in most months of the year. However, there are still some potential risks in the Northern region during peak times at the end of the dry season (from May to July if demand increases suddenly).

General Director of Vietnam Electricity Group (EVN) Nguyen Anh Tuan reports at the meeting (Photo: Tran Hai).

To ensure power supply in the last months of 2024 and 2025, EVN is continuing to vigorously implement the following key tasks and solutions: For the power generation sector: coordinate with NSMO to update the mobilization needs in the last months of 2024 and the expected output in 2025 to adjust the fuel supply plan in a timely and flexible manner to ensure power production according to the needs of the system. Strengthen the maintenance of power plants under management, ensure availability to meet the power generation needs of the national power system, strengthen monitoring of equipment during operation, proactively handle defects to improve the operational reliability of equipment.

After listening to reports from a number of corporations, general companies, opinions from ministries and branches, concluding the meeting, Prime Minister Pham Minh Chinh emphasized the requirement to ensure electricity supply in 2025 and the following years; highly appreciated the opinions at the meeting; welcomed the efforts of EVN, PVN, TKV and other corporations and general companies in ensuring electricity supply. The Prime Minister affirmed that we ensure the commitment in 2024 not to have a power shortage; this is a great effort, and at the same time, we have learned from the power shortage incident in 2023; from there, it shows that if the management is not good, the operation is not good, then the personnel work must be handled, this needs to be continued in the coming time.

According to the Prime Minister, currently, the power source has not changed compared to 2023, but the supply is guaranteed; we ensure electricity in 2024 with a capacity increase of 11-13% compared to 2023; while the source has not increased, that proves better management. The Prime Minister also praised EVN for its excellent performance in the past time, especially the completion of the 500kV Quang Trach - Pho Noi line, contributing to providing additional power to the North.

Chairman of Vietnam National Oil and Gas Group (PVN) Le Manh Hung reports at the meeting (Photo: Tran Hai).

Commenting on the electricity supply situation in 2025, the Prime Minister said that it is not a big problem to increase the capacity by 2,500MW; at the same time, he absolutely requested that there must be no shortage of electricity in 2025, and that there must be specific solutions: accordingly, we have completed and issued the Decree on the direct electricity trading mechanism; today (October 19), we must issue the Decree on self-produced and self-consumed rooftop solar power; at the same time, we must form and develop the renewable energy industry, aiming at using clean electricity sources, promoting the implementation of a circular economy; soon complete the purchase of electricity from Laos in the spirit of harmonious benefits and shared risks; import more electricity from China; the transmission lines from Laos and China must be accelerated, in which the 500kV Lao Cai-Vinh Yen line must be completed within 6 months; The 220kV Nam Sum-Nong Cong line must be completed in 2024.

Regarding coal, the Prime Minister requested that TKV Group must have a long-term exploitation plan for 5 years, focus on exploiting more coal, reduce imports; consider opening the way to buy coal from Laos, thereby contributing to strengthening the strategic connection between the two economies, so the State and TKV will research and invest together. The Prime Minister requested the Ministry of Industry and Trade to focus on completing the Electricity Law (amended) to be submitted to this 8th session.

To ensure electricity supply in the 2026-2030 period with an expected growth demand of 12-15%, the Ministry of Industry and Trade, the State Capital Management Committee at Enterprises, and corporations, based on this target, will develop scenarios to avoid power shortages at any cost; study and implement nuclear power projects, and diversify power sources other than traditional sources. Regarding hydropower, the Prime Minister requested EVN to closely coordinate with the Ministry of Agriculture and Rural Development, relevant ministries and branches to regulate harmoniously to ensure both power generation for the peak dry season in May and June and ensure irrigation.

For power sources related to gas and LNG, the Prime Minister requested to calculate appropriate electricity prices according to the market mechanism and the specific situation of the country, harmonizing the interests of all parties, harmonizing the interests of the State, people, and businesses, harmonizing benefits, and sharing risks. The Prime Minister affirmed the determination and determination to switch from coal-fired power to clean power, contributing to the fight against climate change, actively transforming green, transforming digitally, and developing clean power sources.

Basically agreeing with the recommendations of EVN, PVN... at the meeting, the Prime Minister believes that, with all the solutions, organizational innovation, and working methods of the relevant entities, in the period of 2026-2030, we can ensure sufficient electricity supply for the economy, while paying attention to ensuring 5 factors (source, grid, distribution, electricity use, electricity price...) to both ensure growth targets and ensure green growth, and suitable electricity prices for people in the current economic context.

Source: https://nhandan.vn/no-luc-bao-dam-cung-ung-du-dien-cho-nen-kinh-te-nam-2025-va-nhung-nam-tiep-theo-post837546.html