Deploying investment in construction of power projects on schedule

This morning, April 12, Minister of Industry and Trade Nguyen Hong Dien chaired a meeting with leaders of 15 provinces and cities, Vietnam Electricity Group and Vietnam Oil and Gas Group on the implementation status and solutions for investment in construction of gas-fired power projects. Vice Chairman of the Provincial People's Committee Le Duc Tien attended the meeting at the Quang Tri bridge.

Vice Chairman of the Provincial People's Committee Le Duc Tien speaks at the meeting - Photo: NT

According to the Power Plan VIII, the total capacity of 23 gas-fired power plant projects invested in construction and put into operation by 2030 is 30,424 MW. Of which, the total capacity of gas-fired power plants using domestically exploited gas is 7,900 MW (10 projects), the total capacity of gas-fired power plants using LNG is 22,524 MW (13 projects).

As of April 2023, 1 project has been put into operation; 1 project is under construction; 18 projects are in the process of investment preparation (total capacity of 23,640 MW). Some projects have not been approved; some LNG power projects have selected investors and are implementing investment preparation steps, negotiating contracts and agreements.

Gas-fired power projects that can be put into commercial operation before 2030 include: O Mon Power Center; Nhon Trach 3 and Nhon Trach 4; Hiep Phuoc. The total capacity of projects put into operation before 2030 is 6,634 MW.

The remaining projects can only be put into operation by 2030 if PPA negotiations and loan arrangements are completed before 2027. Gas-fired power projects in the gas-fired power chain (Block B, Blue Whale) also depend on the progress of upstream projects to ensure the overall efficiency of the entire project chain.

At the meeting, delegates focused on discussing difficulties and obstacles in the process of implementing investment in the construction of gas-fired thermal power projects in localities and units, focusing on issues such as procedures, land, site clearance, planning, etc. From there, they proposed and recommended that the Ministry of Industry and Trade and the Prime Minister provide direction for solutions.

Speaking at the meeting, Vice Chairman of Quang Tri Provincial People's Committee Le Duc Tien said that Quang Tri is currently implementing two projects: LNG Hai Lang, phase 1 - 1,500 MW and Quang Tri Thermal Power Plant - 340 MW.

In addition to the advantages, the Hai Lang LNG Project, Phase 1 - 1,500 MW is facing difficulties and problems in planning, connection plans, some mechanisms and policies related to electricity output consumption (Qc), electricity prices and time to mobilize capacity, electricity of power plants invested in construction in the form of independent power projects is slow to be issued. Therefore, it is difficult to borrow capital from foreign organizations for implementation.

Regarding the Quang Tri Thermal Power Plant Project - 340MW, the Government has not supported the increase in the plant's capacity to meet the project's economic efficiency as proposed by the investor. Therefore, it is recommended that the Ministry of Industry and Trade consult with the Prime Minister to consider and agree for the People's Committee of Quang Tri province to implement the adjustment of the Construction Planning in the Southeast Economic Zone.

Advise competent authorities to assign the investor of the 500 kV transmission line project connecting Hai Lang LNG Project, phase 1 - 1,500 MW to the national power system from the 500 kV distribution yard of Hai Lang LNG Project, phase 1 - 1,500 MW to the 500 kV distribution yard of Quang Tri with a length of 23 km.

Consider and promptly issue a number of mechanisms and policies related to electricity output consumption (Qc), electricity prices and time to mobilize capacity and electricity of power plants invested in and built in the form of independent power projects...; advise the Prime Minister on increasing the capacity of the Quang Tri Thermal Power Plant Project - 340 MW according to the investor's proposal to meet the project's economic efficiency.

Concluding the meeting, Minister of Industry and Trade Nguyen Hong Dien acknowledged the recommendations and proposals of localities related to the gas-fired power projects that have been and are being implemented. This is the basis for the ministry to synthesize and resolve according to its authority; recommend the Government and relevant ministries and branches to consider and resolve.

At the same time, it is emphasized that gas-fired power projects are an extremely important source of energy, ensuring the economic development of the country. Therefore, it is necessary to promote the responsibility of local Party committees and authorities in implementing gas-fired power projects. For localities (Thanh Hoa, Nghe An and Ninh Thuan) that have not yet selected an investor for the gas-fired power project, there must be no delay, and no later than July 15, 2024, an investor must be selected.

For localities that already have investors, create favorable conditions for investors to complete procedures and documents; regularly urge investors to implement projects on schedule as committed; promptly report to competent authorities to resolve any difficulties and problems that arise. The Department of Electricity and Renewable Energy regularly urges, guides, and supports units and localities in the process of implementing gas-fired power projects in a timely manner according to regulations...

Ngoc Trang

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