Vietnam: EVN proposes to prioritise coal supply for power production

The Electricity of Vietnam (EVN) has proposed the Viet Nam National Coal and Mineral Industries Group (Vinacomin) and the Northeast Corporation to ensure coal supply for power production in the coming summer months. EVN has also proposed those two coal suppliers reduce coal supply for other sectors and to increase the amount of coal supplied for power production in the second quarter of 2023. Other sectors will be compensated in the last months of the year.

At the same time, it is recommended that these partners share financial difficulties by considering reducing coal fuel prices for EVN’s power production activities. According to the plan, in the three months of May, June and July, the mobilised output of coal-fired power plants is expected to remain high.

The total expected output of EVN’s anthracite-using thermal power plants in these three months will be 14.77 billion kWh, corresponding to the coal demand of 7.17 million tonnes. However, the total coal supply under the contracts signed between EVN with TKV and Northeast Corporation is only 6.59 million tonnes.

EVN said that although it has just entered the peak period of the dry season, the power supply to the system is already difficult. Hydrological developments are not favourable because the water in hydroelectric reservoirs is lower than planned.

To ensure power supply, EVN has had to mobilise maximum power supply, including power from plants having high-priced production due to the use of diesel and fuel oil.

According to EVN, its power generation companies have signed a coal purchasing contract for power production in 2023 with TKV and the Northeast Corporation. The total volume of coal is 17.98 million tonnes under contract with TKV and 7.05 million tonnes with Northeastern Corporation 7.05 million tonnes. Most are imported coal.

According to EVN Deputy General Director Ngo Son Hai, the coal supply in the first quarter of 2023 met the volume under the contract. However, it is still lower than the power system’s actual requirements.

EVN said that the efforts of TKV and Northeast Corporation to supply coal have made an important contribution to EVN’s production and supply of electricity for economic development and serving people’s lives. However, total electricity production from coal in the first four months of 2023 reached 40.06 billion kWh, lower than the plan for electricity supply and operation of the national power system in 2023 issued by the Ministry of Industry and Trade.

Do Manh Kham, general director of Northeast Corporation, said the Corporation is always to ensure coal supply for power generation. However, the corporation has also faced many difficulties in mining, so it has not increased coal output.

Meanwhile, Dang Thanh Hai, Vinacomin’s general director, said that Vinacomin would make efforts to ensure the supply of coal for power production. At the same time, he has expressed that the two sides would continue to exchange information on production and business situations regularly and promptly remove difficulties in implementing business cooperation. EVN General Director Tran Dinh Nhan hopes that in the dry season months of 2023, Vinacomin and Northeast Corporation will ensure enough coal supply for electricity production to serve the country’s economic development and people’s daily life.
Nhan also hopes that the parties will continue to closely coordinate, and increase exchange to constantly improve cooperation efficiency towards the goal of ensuring national energy security. VNS