>> EVN orders end to power outages
Limited supply and increased demand may force Electricity of Vietnam (EVN) to increase electricity rates.
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EVN blames power shortage on capital shortfall |
Pham Le Thanh, General Director of the group, the nation’s sole electricity provider, made the statement at a meeting in Hanoi on January 10.
According to the group’s estimates, the country will face more power shortages this year. Thanh blamed the shortfalls on decreases in water levels at hydroelectric facilities, as well as a shortage of capital for new investment projects.
He said that Vietnam is highly dependant on hydroelectricity, and must switch to other methods of power generation to meet future energy needs.
Price rates do not correspond to the high cost of the operations. There are difficulties in raising the capital for new power generation projects. At the same time, incompetent contractors and delays in site clearance have slowed many existing projects, added.
EVN forecasts that demand for electricity will increase by 17.63% this year. The figure may go as high as 18.3% during the dry season, when the capacity at hydroelectric power plants is at a low.
As of December 31 last year, the water levels at lakes nationwide that provide for hydroelectric energy were much lower than normal levels. The EVN estimates that this year, the water shortages at all of these lakes could make up a combined 12 billion cubic metres of water, resulting in a reduction of electrical output of three billion kWh.
Unstable operations at newly-built coal-fired and gas fueled power plants may add to the country’s electricity problems.
EVN has asked the Government for approval of a plan to float electricity prices in 2011. They are also requesting that the Government give priority to its power projects in allocating ODA and other soft loans.
The Government could also help the group by setting up and facilitating negotiations on credit agreements with domestic and foreign partners. Such negotiations could lead to the completion of existing projects, such as the Lai Chau hydroelectric plant, and the coal-fired power plants Vinh Tan 2 and Duyen Hai 1.