>> Government approves power price hike of 15.28%

>> Warning: power shortages during dry season

As a result of projected shortfalls in the energy supply, projects that fall under the national power development plan through 2015 or Plan VI will be fast tracked.

Energy projects behind schedule

Deputy Prime Minister Hoang Trung Hai addressed the issue at a meeting in Hanoi on March 12 to review the implementation of the Plan VI.

Hai said that many thermal power projects such as those in Haiphong, Quang Ninh and Cam Pha, have been lagged behind schedule.

He emphasised the urgency to speed up existing projects in order to meet increasing demand.

The National Steering Committee for Plan VI blamed the slow pace of construction at these sites on a shortage of workforce and capital, as well as the slow clearance and resettlement plans on the sites.

Investors said they are trying to deal with difficulties and speed up the process.

They promised that construction of Haiphong 1 and Cam Pha 1 coal-fired power plants would be ready for operation in the second quarter of 2011. In the meantime, the 600-MW Quang Ninh 1 coal-fired power plant has resumed operations at a capacity of between 230 MW and 260 MW after the breakdown on February 16.

In 2011, numerous power projects, including Mong Duong 1, Duyen Hai 3 and Thang Long, are scheduled for ground-breaking. Eight other projects are still in the negotiation phase, while three are seeking investors.

Vietnam is forecast to face a power shortage of between 1.2 and 1.6 billion kWh during the dry season this year, due to higher demand coupled with a low hydroelectric power output.

Despite a power price hike of 15.28% beginning March 1, Vietnam will have to rely on China for more than 4.5 billion kWh of electricity, as the domestic power supply is expected to be reduced beginning in March.