Petrovietnam seeks solutions to increase efficiency of power plants

The electricity system - electricity market has faced many difficult challenges such as high penetration of renewable energy sources, changes in QC commitments, declining fuel sources... forcing factories to find solutions to cope.

Retail price does not cover costs, power plants are in trouble

According to Mr. Phan Tu Giang, Deputy General Director of the Vietnam Oil and Gas Group (Petrovietnam), the Group's power plants currently account for 8% of the installed capacity of the entire power system nationwide.

Faced with the situation of power plants operating below their set capacity, in addition to objective causes, Mr. Giang also said that it is necessary to frankly acknowledge subjective existences that affect the operation process.

Ca Mau 1&2 Power Plant. Photo: Petrotimes

Sharing the fact that retail electricity prices do not fully reflect the cost of electricity production, causing difficulties for power plants, Mr. Nguyen Thanh Nam, Deputy Head of Petrovietnam's Electricity and Renewable Energy Department, said that in order for power plants to feel secure in investing and producing, there needs to be a long-term, stable total annual contract output (Qc).

Currently, there are about 400 factories nationwide under the control of the National Power System Dispatch Center, however, only 112 factories directly participate in the electricity market. In addition, Vietnam is also importing electricity from Laos and China and exporting to Cambodia.

In the past 3-4 years, renewable energy sources have made great inroads into the system, but they are characterized by instability, greatly affecting the operation of the power system.

Besides, the electricity system - electricity market has also faced many difficult challenges such as changes in Qc commitments, declining fuel sources, etc.

Therefore, the need for Petrovietnam's power plants to find optimal solutions for costs and production efficiency is also particularly emphasized.

The Electricity and Renewable Energy Board recommends that power production units in the Group prepare human resources, equipment, fuel sources, and ensure availability and readiness of power generation units when the system needs them.

With the fact that the 500 kV line 3 has been put into operation, helping to increase inter-regional power transmission, it has been recommended that units need to improve operational efficiency, reduce production costs, reduce prices, and increase opportunities for electricity generation in the market.

“Units also need to closely monitor market developments, build in-depth analysis and evaluation tools to come up with the most effective strategies; research and learn the latest market regulations (underwriting mechanism, DPPA, contract trading floor, etc.) to have preparations and avoid being passive,” Mr. Huy added.

According to Petrovietnam, the contract output of the Group's power plants according to Qc in 2024 is 13.47 billion kWh. Of which, the Vietnam Oil and Gas Power Corporation (PV Power) is 8.86 billion kWh and the Oil and Gas Power Generation Branch (PVPGB) is 4.61 billion kWh).

However, the cumulative electricity output as of September 20, 2024, the entire Group has reached 20.26 billion kWh, exceeding the 2024 target, completing 72.8% of the year plan.

Plan long-term maintenance early to save costs

Mr. Ho Cong Ky, Director of the Oil and Gas Power Generation Branch (PVPGB) said that this unit is estimated to reach over 9.4 billion kWh in the first 9 months of 2024 with 4 units operating stably and safely.

To achieve that goal, PVPGB has synchronously implemented the work of building internal management, human resource management, and good management of production factors. In particular, the work of operating, maintaining, and repairing power plants regularly and periodically has been focused by PVPGB since the day of receiving, ensuring the availability of machinery and equipment and good performance.

Sharing his experience, Mr. Ky said that maintenance and repair plans need to be prepared early, 6 months in advance for minor repairs and 12 months in advance for major repairs. In the plan, PVPGB will determine which parts to self-perform and which parts to outsource in order to proactively use resources.

Along with that, human resource preparation needs to be done in parallel. The results seen in the maintenance process of Song Hau 1 and Thai Binh 2 Thermal Power Plants are cost savings, quality assurance, and progress shortened by 1-2 days.

However, Mr. Ho Cong Ky also mentioned the shortcomings in the supply of coal fuel, especially imported coal for Song Hau 1 Thermal Power Plant. That is, during the peak season (late April, early May), the delivery progress is slow due to poor coordination and regulation between the parties.

Also talking about experience in using coal fuel, Mr. Nguyen Huu Hung, Deputy Head of Technical Department of PV Power said that Petrovietnam is carrying out the assigned political task of consuming 10% of the 20 million tons of coal Vietnam supports Laos.

“At Petrovietnam, only Vung Ang 1 and Thai Binh 2 plants can burn this type of coal, however, changing fuels causes many challenges for the plant. Therefore, Vung Ang 1 Plant has planned to evaluate the heat loss rate, find technical solutions to manage performance, and save production input costs,” said Mr. Hung. Having just finished the maintenance period, Mr. Mai Van Long, Director of Thai Binh 2 Power Plant, also shared practical experience in finding potential contractors and solutions to handle existing technical problems and abnormalities (heaters, control devices, UPS, etc.) to improve operational reliability.

To ensure effective maintenance and repair, Mr. Long recommended that the Group establish a 3-year long-term maintenance plan for the factories, so that optimal materials can be purchased at reasonable costs.

In 2024, maintenance and repair work of Petrovietnam's power plants will be carried out proactively and thoroughly. 7/11 units will exceed the plan by 1-7 days; 1 unit will be on schedule; 1 unit will have its repair schedule pushed forward and only 1 unit will be behind schedule due to the extended time for centering and adjusting the shaft of the unit, but this will not affect the electricity output.
Thanks to that, the operation situation in 2024 at Petrovietnam's power plants is relatively stable and safe.

Regarding coal-fired thermal power plants, Thai Binh 2 Plant has officially entered the electricity market since August 1, 2024. With the advantage of fuel costs being among the cheapest plants in the North, Thai Binh 2 also has a lot of room to generate electricity in the market.
In the South, Song Hau 1 Plant is currently among the coal-fired thermal power plants with the cheapest variable prices, so it is always prioritized for mobilization to meet system demand.
Vung Ang 1 Plant operates according to the minimum configuration of the power system, the Plant is given priority to mobilize 1 unit. However, due to its location at the Central - North transmission bottleneck, the Plant's capacity is often reduced when renewable energy generation is high.
For gas turbines, Ca Mau 1&2 and Nhon Trach 2 plants have low prices in the Southern region, so they are always mobilized at high capacity to meet the load demand of the power system during the hot season.
In hydropower plants, due to the characteristics of having a much lower variable price than thermal power plants, the mobilization order is higher. However, the hydropower plant block is heavily dependent on hydrological factors during operation.
Specifically, Hua Na Plant was greatly affected by the storage of water from upstream hydropower plants in Laos. The water flow was lower than in previous years, so it was often restricted due to violations of water level limits. Dakdrinh Plant is located in the Central region with good hydrology, so the Plant's output is always high.
In the domestic LNG and natural gas plant block, when approved, incentive mechanisms on price and output will directly compete for market share with existing power plants.

Source: https://baodautu.vn/petrovietnam-tim-giai-phap-tang-hieu-qua-cac-nha-may-dien-d226049.html