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Vietnam Energy Forum

Conclusion of the Government Permanent on Electricity Supply Solutions in 2024

 - The Government Office has just sent the Notice of Conclusion No. 457TB-VPCP of the Government Permanent on solutions to ensure electricity supply in 2024. Below is the main content of the Conclusion.

On October 28, 2023, Prime Minister Pham Minh Chinh chaired a Government Permanent meeting on solutions to ensure electricity supply in 2024. Attending the meeting were Deputy Prime Ministers: Le Minh Khai, Tran Hong Ha, and Tran Luu Quang; Minister of Industry and Trade, Chairmen of the Committee for Management of State Capital at Enterprises (Committee), representatives of leaders of ministries and agencies: Planning and Investment, Agriculture and Rural Development, Finance, Justice, Natural Resources and Environment; Chairmen and General Directors of the Groups as the Electricity ò Vietnam (EVN), Vietnam Oil and Gas (PVN), Vietnam National Coal and Mineral Industries (Vinacomin).

After listening to the leaders of the Ministry of Industry and Trade (MOIT) and EVN report on electricity supply solutions in 2024, and the opinions of the representatives participating in the meeting, the Standing Government concluded a number of specific contents:

Developing plans and implementing synchronous, drastic and effective solutions to ensure sufficient electricity supply in the last months of 2023 and 2024 is especially important to serve production, business and consumption by the people, ensuring national energy security and Vietnam's reputation among foreign investors.

The recent times, the Prime Minister and Deputy Prime Ministers in charge of each field have many instructions on this issue, they requested MOIT and Committee, EVN, Vinacomin, PVN and relevant agencies based on functions and tasks, with responsibilities to proactively organize and implement assigned tasks and solutions and enhance better and more effective coordination.

All for the common goal of ensuring enough electricity supply for production in the last months of 2023 and 2024, as well as preparing for the next 5-year and 10-year plans. According to the construction scenario reported by the MOIT and EVN: the GDP growth target in 2024 is at 6.0 - 6.5%, under the condition that the total plants will be from 50,000 MW to 52,000 MW. To implement this scenario, MOIT, Committee, EVN and relevant agencies must allocate proactively capital for implementing, urging, inspecting, supervising and assigning the proposed scenario to ensure electricity supply for production, business, and people's daily activities in the last months of 2023 and 2024 and can be calculated even higher (when conditions allow for higher growth).

To ensure sufficient electricity supply for the last months of 2023 and 2024, the Government Standing Committee has requested ministries and agencies to carry out the following tasks and solutions:

Firstly: Power plant solution: MOIT, Committee direct Vinacomin, Dong Bac (Northeast) Corporation, EVN and PVN and relevant units to coordinate for determining the coal demand and plan in 2024 for Vinacomin and Dong Bac proactively, actively to immediately deploy the solutions to maximally produce the domestic coal for electricity supply in 2024 in ensuring close control without losses, negative effects and group benefits.

Regarding the proposal to exploit more than 15% of the output capacity of Vinacomin: Deputy Prime Minister Tran Hong Ha directed the Ministry of Natural Resources and Environment to preside and coordinate with MOIT, Committee, Vinacomin, and relevant agencies to consider and resolve it completely according to their authority and legal regulations in November 2023. In case of any problems or beyond their authority, report to Deputy Prime Minister Tran Hong Ha to preside over. Resolutely do not let problems to affect coal exploitation and supply to annual electricity production.

Regarding solutions to ensure maximum operation of thermal power plants: The investors of coal power plants throughout the country, especially in the North, need to have plans for appropriate inspection, repair and maintenance to prepare good conditions to ensure safe and stable electricity production according to the operation and mobilization plan of the competent authority, minimizing incidents of generator sets during the peak months.

For the hydropower plants: MOIT, Ministry of Agriculture and Rural Development and Committee, based on their authority, direct EVN, the National Power System Dispatch Center (A0) and relevant units to guide the flexible water storage and use in accordance with the actual situation on the principle of proactively building early water storage plans for hydropower reservoirs. Especially strategic multi-purpose hydropower reservoirs in the North and economize water level conservation for ensuring the maximum exploitation of electricity generation capacity during peak summer times (usually in May and June every year) and has the highest redundancy calculation among the peak dry season in 2024.

The Owners of lakes and hydropower dams proactively coordinate with localities to develop plans to prepare water for agricultural production, minimizing dependence on the amount of water released from lakes, and maximizing saving of water resources.

In particular, with renewable energy projects: MOIT presides over and coordinates with the Ministry of Finance to guide the determination of electricity prices for the wind and solar power projects that have been completed but have not yet signed purchase power agreement (PPA)contracts to make the most of available power projects and avoid waste on the principle of harmonious benefits, shared risks, openness, transparency, non-negative, group benefits. MOIT implements the Prime Minister's direction, works with the agencies of the National Assembly, the National Assembly Standing Committee and the National Assembly's thematic Supervision Team on the implementation of legal policies on energy development (period 2016 - 2021) to include in the Resolution to assign the Government for regulating the direct electricity trading mechanism between renewable energy development units and large customers and the mechanism to encourage the development of the rooftop solar power projects for the housings, offices, industrial parks and self-produced and consumed. MOIT advises the Government to send an official document to the National Assembly. On that basis, make statistics and synthesize reports to Deputy Prime Minister Tran Hong Ha before November 10, 2023 on the power plant projects that have legal and technical problems that have not been put on the grid, or that put on the grid, but not used at full capacity and to have solutions to avoid wasting state and corporate assets.

Regarding electricity import: EVN presides with PVN, Vinacomin and relevant agencies to calculate and balance the use the maximum of domestic electricity plants. In case of necessity, may consider plans to buy electricity directly from Laos and China, but it must be proactive and make accurate forecasts early.

For the BOT coal power plants: MOIT, Committee, EVN re-statistics BOT projects that are behind schedule compared to the National Power Development Plan for the period 2021-2030, with a vision to 2050, to have suitable alternative, supplementing plants. That must be handled before November 15, 2023. Out of the prescribed deadline, the project will be removed from the planning or the contract will be terminated.

Secondly: Regarding power transmission:

Minister of MOIT, Chairman of the Committee and People's Committees of relevant provinces and cities (if there are still problems with forest land and rice land, Deputy Prime Minister Tran Hong Ha will preside over and work with ministries, agencies and localities to promptly handle them, without delay). EVN implements the tasks stated in Conclusion Notice No. 440/TB-VPCP dated October 26, 2023 to perform in accordance with assigned functions and tasks and, at the same time, urgently to research and implement transmission projects according to planning to improve the capacity of the national electricity transmission system and promptly respond to all electricity supply situations. To drastically complete the 3rd circuit of the 500 kV transmission line (Quang Trach - Pho Noi) before June 2024.

Thirdly: Regarding electricity consumption and saving: MOIT in coordination with the People's Committees of provinces and cities the groups: EVN, Vinacomin, PVN and other agencies and units to more seriously and actively implement Directive No. 20/CT-TTg dated June 8, 2023 of the Prime Minister on enhancing electricity saving, Decision No. 279/QD-TTg of the Prime Minister dated March 8, 2018 on approving the National Program on Electricity Demand Management period 2018 - 2020, orientation to 2030.

Fourthly: Regarding electricity prices:

The Government Permanent has agreed in principle to adjust the average retail electricity prices in 2023 suitable to the actual situation. MOIT, Committee, EVN based on their functions, tasks, authority and regulations in Decision No. 24/2017/QD-TTg and relevant legal regulations on the basis of full impact assessment and ensure compliance with the practical situation and goals of controlling inflation and promoting economic recovery and growth. To research and have appropriate policies and solutions to support poor and policy households, and disadvantaged groups according to the provisions of laws. Carry out good, effective and timely information and communication for creating the social consensus and must decide according to authority, do not assign too much and discuss when there are principles for handling.

Finally, the Government Permanent requests EVN to preside over and coordinate closely with relevant agencies to absorb the instructions mentioned above of the Government Permanent and complete the Power Supply Plan for 2024 and the following years to ensure synchronous and efficient operation, absolutely no let shortage of electricity in any case. The above plan will be submitted to the MOIT, Committee according to their authority and approved in November 2023.

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