• National Electricity Development Plan announced

The plan is pressed ahead with the 13^th Government’s important breakthroughs, including developing the nation’s electricity transformation system and using energy-saving technology.

Ensuring electricity supplies  

Developing the electricity sector must go hand in hand with the country’s socio-economic development strategy and ensure electricity supplies for both production activities and people’s daily consumption. It requires effective use of natural resources for electricity development, appropriate imports of electricity and energy, diversification of energy sources, fuel preservation, and energy saving for the future.

Under the plan, the electricity sector is required to produce and import 194-210 billion kWh in 2015, 330-362 billion kWh in 2020, and 695-834 billion kWh in 2030. In addition, the sector should give priority to developing renewable energy and increasing the percentage of electricity generation from renewable energy from 3.5 percent in 2010, to 4.5 percent by 2020, and 6 percent by 2030.

During this period, the sector will also try to decrease the Electricity-GDP elasticity from the current 2.0 to 1.5 by 2015 and down to 1.0 by 2020. At the same time, it will promote its rural electrification programme to ensure 100 percent of households in rural and mountainous areas have access to electricity by 2020.

The plan affirms the key role of the Electricity of Vietnam (EVN), PetroVietnam (PVN), and the Vietnam National Coal, Mineral Industries Holding Corporation Limited (Vinacomin) in ensuring Vietnam’s energy security.

EVN Deputy General Director Duong Quang Thanh said EVN is set to implement 14 out of the 25 projects under the plan.

However, Thanh said, there are still problems facing the Group, including capital shortages and slowness in site clearance.

In addition, EVN cannot take the initiative to purchase input materials such as coal and gas.

Ironing out snags

Hoang Quoc Vuong, Deputy Minister of Industry and Trade, attributed Vietnam’s failure to fulfil the National Electricity Development Plan for 2006-2010 to capital shortages, slowness in site clearance, and heavy concentration on coal-fired thermal power projects.

Only 70 percent of electricity generation projects and 60 percent of electricity transformation projects have been completed so far, Vuong said.

These two problems are clearly identified in the plan for 2011-2020. Regarding site clearance, the Government has asked localities to reserve land for all key projects.

The plan includes measures to mobilise different resources of investment and development capital and to sell electricity according to a market-based mechanism under State management and control.

The plan also proposes diversifying power sources to cope with the shrinking supply of coal.

In addition to developing renewable energy, the plan emphasises on the development of nuclear energy with the aim of putting the first nuclear power reactor into operation by 2020 and increasing the output of nuclear power to 70.5 billion kWh by 2030.

Saving energy – a basic solution

Apart from speeding up electricity generation projects to ensure enough electricity supplies for the future, the plan considers energy-saving as a top measure and calls for intensified communication work to popularise the Law on Energy Efficiency and Conservation to improve the effectiveness of using energy, especialy in production activity and people’s daily consumption.

Vuong said it is necessary to raise public awareness of the National Target Programme on Energy Efficiency and Conservation that aims to save 5-8 percent of total electricity consumption by 2020 and 8-10 percent by 2030.