28-5-2023 (HANOI) According to Deputy Minister of Industry and Trade Đặng Hoàng An, electricity imports from Laos and China contribute only a small portion to Việt Nam’s total electricity demand. An made this statement in response to inquiries from National Assembly deputies regarding the increase in electricity imports from neighboring countries while domestic renewable energy projects remain unconnected to the national power grid.
During a recent meeting, NA Deputy Tạ Thị Yên expressed concerns over the lack of progress in negotiations for connecting renewable energy projects to the national grid. She highlighted the irony of Việt Nam resorting to increased imports from Laos and China to compensate for the electricity shortage. Yên argued that this was a significant waste, as numerous solar and wind power projects remained untapped while the country faced a severe electricity shortage.
In response, Deputy Minister An clarified that the import of electricity from Laos and China was not due to a shortage but rather a part of ongoing cooperation agreements. Việt Nam has been importing electricity from China since 2005 through transmission lines in Lào Cai and Hà Giang provinces. Additionally, the country imports mostly hydroelectricity from Laos, based on an intergovernmental cooperation agreement signed in 2019.
The daily electricity import from Laos amounts to approximately 7 million kWh, while China supplies around 4 million kWh. These figures are minimal compared to the daily consumption demand, estimated at 445-450 million kWh in the northern region.
An emphasized that these imports were made under cooperation agreements within the Greater Mekong sub-region, which facilitate the connection of power grids among regional countries. Furthermore, Việt Nam’s electricity master plan, No 8, outlines the goal of exporting renewable energy to neighboring nations.
Currently, Việt Nam has a 220 kV line connecting with Laos and a 110 kV line with China. As per commitments with Laos, Việt Nam is expected to import at least 3,000 MW from the country by 2025 and 5,000 MW by 2030.
An pointed out that the increase in electricity imports from Laos and China this year was primarily due to supply shortages caused by extreme weather conditions and drought during the dry season.
The import prices for electricity from Laos and China are lower than some domestic sources, according to the Ministry of Industry and Trade. For instance, prices from China range around 6.5 cents or VNĐ1,540 per kWh, and from Laos at 6.9 cents per kWh. Comparatively, statistics from Việt Nam Electricity (EVN) indicate that the average electricity purchase price during the first three months of this year was around VNĐ1,845-2,200 per kWh, making the prices from Laos and China more affordable than certain domestic sources.
Bùi Văn Thịnh, President of Bình Định Wind Power Association, supported the decision to import electricity from China and Laos, emphasizing that the power shortage mainly affects the northern region while renewable energy projects are concentrated in the central and southern regions. This concentration of projects creates pressure on the North-South 500 kV transmission network.
Regarding the challenges in connecting over 4,600 MW of renewable energy to the national grid, Deputy Minister An explained that many projects had encountered obstacles due to violations of regulations related to planning, land use, and construction investment. Efforts are being made to address these issues and expedite the connection of renewable energy projects by considering the benefits of all stakeholders.
EVN’s data shows that 52 wind and solar power projects with a total capacity of 3,155 MW have applied for negotiations. Among them, 42 projects with a combined capacity of nearly 2,259 MW have completed pricing negotiations with EVN. However, 33 projects with a total capacity of 1,581 MW have yet to initiate negotiations.
The Ministry of Industry and Trade has approved temporary prices for 19 projects with a total capacity of 1,347 MW. As of May 26, five projects with a combined capacity of 303 MW have been deemed eligible for commercial operation. This means that the power system will receive an additional supply of over 300 MW from these plants in the coming days.
