Creating three pillars for energy development

Creating three pillars for energy development - 

“Three groups need to develop their key roles in energy development and national energy security,” Minister of Industry and Trade Vu Huy Hoang told a recent conference to review one year of implementing the Strategic Cooperation Partnership between the Vietnam Electricity Group (EVN), the Vietnam National Gas and Oil Group (PVN) and the Vietnam National Coal and Mineral Industries Group (TKV).

Cooperation to develop strength

Vietnam Energy Science Council Chairman Associate Professor Dr. Bui Huy Phung said that coal, electricity and oil and gas were three major segments which ensure national energy security. The three groups have significantly contributed to national energy supply as they closely connect with each other (the coal and oil and gas sectors provide fuel for the electricity sector, while the electricity sector provides power for production of coal, oil and gas).

Last year these groups enhanced six areas of strategic cooperation to provide a basis for combining their strength for mutual development.

Specifically, regarding power source projects, these groups cooperated in the Nhon Trach 2 Thermal Power Plant, Hua Na Hydropower Plant, Dakdrinh Hydropower Plant, Phu Quy Island Wind Power Plant and Thai Binh 2 Thermal Power Plant. The EVN International Joint Stock Company, which was capitalized by the EVN and PV Power, and launched a series of projects such as Se San 1, Se San 2 and Se San 5 hydropower plants. The EVN National Power Transmission Corporation (EVN NPT) concluded agreements to invest in complete power network projects and connect them with the PVN’s Vung Ang 1 Thermal Power Plant, the PVN’s Dakdrinh Hydropower Plant and the TKV’s Mao Khe Thermal Power Plant. The EVN NPT concluded an agreement to connect with the PVN’s Long Phu 1 and Thai Binh 2 thermal power plants and is considering connection with the PVN’s Song Hau 1 Thermal Power Plant and Vinacomin’s Dong Nai 5 Hydropower Plant.

Regarding domestic and international coal transportation for supply to power plants, Vinacomin would sign agreements and carry out negotiations on coal transport and supply to the PVN and EVN thermal power plants such as Thai Binh 2, Vung Ang 1, Quang Ninh 2, Hai Phong 2, Nghi Son 1, Mong Duong 1, Duyen Hai 1, Duyen Hai 3, Vinh Tan 2, Vinh Tan 4 and Thai Binh 1.

Regarding power plant operation, the National Power System Control Center (A0) closely associated with PV Power and the Vinacomin Power Corporation to quickly resolve problems in order for power plants to work at full capacity and in a safe manner to facilitate the national power system and economic development.

In addition, these groups also prioritized each other’s insurance and financial services and cooperated in communications bringing about higher efficiency.

Creating three pillars for energy development

EVN Chairman Tran Quoc Vuong was worried about the development of the power system under Power Plan VII which set a target to increase national power capacity to 75,000MW and production of 330 billion kWh by 2020.

The south would lack power in the short term. For this reason, the EVN, the TKV and the PVN should get together to develop power resources.

Vietnam Energy Association Chairman Tran Viet Ngai said that the coal sector must provide 55 million tonnes of coal for power production by 2015 and 76 million tonnes by 2020 compared with the current capacity of only 20 million tonnes per year. For this reason, Vietnam must import coal from 2015 to provide sufficient coal under Power Plan VII, while at the same time reorganize existing coal ports, roads and conveyor systems to facilitate thermal power plants. Planning coal powers to improve coal transportation is a great challenge which the coal sector alone cannot overcome. This needs cooperation with the EVN and the PVN to create combined strength.

In addition, the Vietnamese gas system plan until 2020 must provide sufficient gas for gas-fueled power centers such as Ca Mau, O Mon, Phu My-Ba Ria and Nhon Trach. Existing gas resources meet only 40 percent of the demand of power plants, and the EVN would have to use a large amount of oil as fuel for power plants leading to increased production costs. Without alliances between the oil and gas and power sectors, gas supply would be difficult.

Minister of Industry and Trade Vu Huy Hoang said that in the short run the TKV, the PVN and the EVN would agree with each other on coal supply for thermal power plants and speak out their problems to Prime Minister Nguyen Tan Dung and the Ministry of Industry and Trade for timely resolution.

Vu Huy Hoang also said that as sectoral development plans of these groups are related to each other, they need to get together to ensure national energy security in facilitating socioeconomic development. In addition, these groups need to devise more specific plans to promote mutual services among their subsidiary businesses following the government’s Buy Vietnamese Goods policy.

Source: VEN

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