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The Vietnam News

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Vietnam feels the heat of power shortages

HANOI - Soaring temperatures are causing power shortages in Ho Chi Minh City as locals reach for fans and air-conditioning units to escape the heat. The shortfall has prompted Electricity of Vietnam (EVN) to fast-track new plans to increase transmission and generation capacity. Local power officials say consumption of electricity in Ho Chi Minh City in the dry season usually reaches an average of between 18 to 20 million kiloWatt hours (kWh) per day. But heatwave conditions have sent power consumption as high as 22 million kWh in the past few days, with peak usage hitting a record of 22.4 million kWh on Tuesday. Power officials admit that the city has been in danger of peak time shortages for the last couple of months - especially from 9 to 10 am.

To keep up with demand, the city's power sector has been forced to run all inner-city transformer stations at full capacity, or sometimes beyond. This has led to serious technical problems at several stations. In a bid to tackle the situation, EVN is planning to start work on a major network of 500 KV power lines in July, extending across several southern provinces. EVN deputy general-director Tran Viet Ngai says the Pleiku-Phu Lam network, which is due to be completed in 2003, will ease the pressure on the overloaded 500 KV north-south system. The new network will transmit electricity produced at the Yaly Hydro - power Plant - and other sources including the Ham Thuan-Da Mi, Hinh River and Dai Ninh facilities - to the 500KV Pleiku power station, from where it will be distributed to seven provinces via the national grid.

Meanwhile, local electricity suppliers are seeking to prevent 110 KV transmission lines from burning out due to overloading. Last month, they had to temporarily suspend the supply of electricity for more than 10 lines with a combined transmission capacity of about 53,000 kWh. The heaviest burden is falling on the two transformer stations controlled by Power Transmission Company No 4 (PTC4), despite the fact that one station has just doubled its previous capacity of 125 MVA. To ease the burden on these stations, EVN has allowed PTC4 to install a new transformer with a transmission capacity of 125 MVA at the Sai Gon Transformer Station. This should help ease dependency on the two overloaded stations.

The recent blackouts in the city have severely impacted on the lives of residents and businesses, and show no sign of letting up. Industry insiders say the slow development of new power projects is a major factor behind the current shortage. "We are having serious difficulties in raising enough funds to carry out our projects," lamented one power project owner. Another problem is said to be the lack of coordination between responsible authorities and the local electricity sector. This has resulted in time-consuming red tape and an overlap in management and inspections. Inaccurate estimates of demand by the Ho Chi Minh City power industry are also being blamed for the blackouts. In the last quarter of 2000 several new power development projects have been put into operation. These include three turbines with a combined capacity of 720 MW in the Phu My Gas-fueled Power Plant No 1, and a 150 MW turbine in the Da Mi Hydro-power Plant. The capacity of some available plants including the Yaly Hydro - power Plant is also slated for an increase.

Local power officials say these developments, plus the new EVN project to build 500 KV power lines, would ensure that dry season power shortages will not be a perennial problem. The new power line project is part of EVN Fifth Electricity Development Masterplan, which is taking shape despite concerns over inadequate investment capital. Under the masterplan, EVN should build a number of new lines to distribute power to high demand areas and build new infrastructure to serve socio-economic growth. The plan estimates the nation's total energy demand will reach 78.4 billion kWh per year by 2010 - three times last year's figure.

In addition, the national grid needs to be expanded considerably to distribute power from proposed plants at Phu My, Ca Mau, Dai Ninh and Can Don. Experts say that by 2010 the national grid will need to cover 297,000 kilometers, with 500 KV lines making up 2,400 km. "Besides the Pleiku - Phu Lam lines, EVN is preparing to invest in other networks such as Phu My - Nha Be - Phu Lam, Pleiku - Dung Quat - Da Nang and O Mon - Phu Lam," said Ngai. When the Son La Hydropower Plant is put into operation in 2010, the corporation will have to build a 500 KV network linking the northern mountainous province of Son La to the national grid. In order to complete its expansion program, EVN will need investment of roughly US$1.5 billion per year. The company will receive some funding from the state budget, but will depend on international investment for a significant proportion of the capital. A campaign to tap new sources of investment capital and encourage private sector participation in the industry is already on the drawing board.

Asia Times on line - May 18, 2001.