Prime Minister orders guarantee of electricity supply, coal and gas for power production

The Prime Minister, Pham Minh Chinh, has recently issued Directive No. 05/CT-TTg on February 14, 2024, regarding the assurance of electricity supply and provision of coal and gas for power production in the upcoming period.

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Prime Minister instructs to ensure power supply, provide coal and gas for electricity production

Ensuring power supply, maintaining national energy security is the foundation and important premise for the socio-economic development, the success of the industrialization – modernization process of the country. In recent years, the Party and the State have always paid attention to and directed the assurance of energy security, in which, the security of electricity supply plays a key role. However, the implementation of electricity supply in the past period has sometimes been deficient and difficult due to many objective and subjective reasons; in which, partial power shortage occurred in the North at the end of the dry season in 2023.

To ensure sustainable energy security, the security of electricity supply for production, business and consumption of the people in the coming time, the Prime Minister instructs:

State Steering Committee for important national programs, projects and focus sectors of the energy industry

Focus on directing, inspecting, coordinating and urging the implementation of investment, construction of important national programs, projects and focus sectors of the energy industry in accordance with the resolutions of the National Assembly, the Government and the guiding decisions and documents of the Prime Minister.

Direct, inspect and urge investors of projects and works, consultancy organizations, contractors in implementing the tasks determined in the approved plans and investment decisions of each component project to ensure the construction progress and quality of the works.

Direct, urge the central Ministries, Branches and Provincial People’s Committees under the central government to solve, within their jurisdiction, difficulties and problems related to the land clearance of important national programs, projects and focus sectors of the energy industry and report immediately to the Prime Minister the contents that exceed their jurisdiction, while proposing solutions for the Prime Minister to consider and decide when problems arise that are critical to important and urgent projects.

Minister of Industry and Trade

Focus on leading, directing the implementation of specific tasks, especially the plan to implement the National Power Development Plan for the 2021-2030 period, with a vision to 2050 (Power Plan VIII). Specifically, concentrate on implementing tasks to ensure the supply source for the power system of the North in the coming years as follows: i) Coordinate with the State Capital Management Committee in enterprises, Ministries, Branches and Provincial People’s Committees under the central government having relevant functions to direct, guide and support the Vietnam Electricity Group in deploying and accelerating the progress to complete as soon as possible the 500kV line 3 Quang Trach – Pho Noi to supply electricity to the North (strive to complete and energize in June 2024); ii) Urgently complete and submit the Submission Dossier proposing the Government’s Decree on mechanisms, policies to promote the development of rooftop solar power installation at households, offices, industrial parks; iii) Take charge, coordinate with the Vietnam Oil and Gas Group, Vietnam Electricity Group in drafting Decree related to the mechanism of gas and wind power trading in the form of abridged and must be completed no later than the second quarter of 2024; iv) Urgently review power sources in the Northern region, report to the Prime Minister solutions to promote the progress of the invested and constructed power source projects, deploy immediately new power sources for each specific project in the Northern region.

Direct the Vietnam Electricity Group and the National Power System Dispatch Center to operate the power system to ensure power supply, develop electricity supply plans, and operate the national power system with the goal of ensuring power supply, ensuring backup supply capacity, and being able to respond and control extreme operating scenarios that may occur.

Forecast and develop plans to direct the Vietnam Oil and Gas Group, Vietnam Coal and Mineral Industries Group, and the Northeast Corporation to provide fully and continuously, ensure timely supply, sufficient quantity, and correct type of coal to serve power production according to the signed Contracts/Commitments; coordinate with relevant units to forecast the use and supply of fuel, ensuring energy supply security.

Direct, inspect, and supervise the Vietnam Oil and Gas Group to fully implement all measures to ensure the progress of the B Batch gas – power projects according to Power Plan VIII, focus on solving issues under its jurisdiction and report to the Prime Minister on issues that exceed its jurisdiction.

Monitor and supervise the progress of key energy projects, such as the Blue Whale project, Thi Vai – Nhon Trach project; take charge and coordinate with relevant Ministries, Branches to promptly handle issues under their jurisdiction, report to the Prime Minister the contents exceeding their jurisdiction, ensuring the implementation of the projects according to the set plan.

Strengthen the strict and effective implementation of the Prime Minister’s directive on enhancing electricity saving, the National Program on energy saving and efficiency, the program on electricity demand management, the transition to clean and green energy; coordinate research to promote domestic production, technology application, innovation, labor productivity increase in the field of energy.

Implement seriously, practically, and effectively state management of the electricity produced and traded outside of the state’s territory. Review commitments and develop plans for electricity supply, electricity selling prices according to the regulations of the law; Prohibit all negativities, corrupt group interests in the process of implementing production, business of electricity trading outside the state’s territory.

Chairman of the State Capital Management Committee in enterprises

Timely approve according to the legal management, use of state capital for investment, production, business in enterprises in the energy industry of Vietnam Electricity Group, Vietnam Oil and Gas Group, and Vietnam Coal and Mineral Industries Group.

Direct, urge the Board of Members of Vietnam Electricity Group, Vietnam Oil and Gas Group, and Vietnam Coal and Mineral Industries Group to concentrate on implementing key energy projects, review and resolve issues as authorized and report to the authorized state agencies if problems exceed their jurisdiction.

Chairman of Vietnam Electricity Group

Direct the coordination with the National Power System Dispatch Center to develop plans and methods for operating the national power system with the goal of ensuring power supply, especially paying attention to backup supply, hydroelectric availability, ensuring full and timely fuel preparation for peak electricity supply in the dry season every year.

Concentrate on leading, directing to accelerate the investment progress, construction and operation of power source projects, power grid entrusted to be the shareholder, especially key power source and power grid projects to supply electricity to the North such as the 500kV line 3 (strive to complete and energize in June 2024), Hòa Bình hydroelectric expansion, Quang Trach I thermal power plant.

Coordinate closely with Vietnam Oil and Gas Group in implementing the gas – power project chain B efficiently and promote the overall progress of the project chain.

Directly update, review, balance the supply and demand of power energy, power system capacity, especially for the Northern region by 2025 and 2030, including solutions to ensure power supply and resolve under their jurisdiction; report to the authorized levels the issues that exceed their jurisdiction.

Direct and implement electricity saving throughout the sector, coordinate with the Provincial People’s Committees, cities under the central government, and electricity users to implement electricity saving measures; intensify effective and substantial propaganda on energy-saving and efficient electricity use to each customer to raise awareness and behavior of electricity use of the people and businesses; at the same time, enhance the implementation of programs on electricity demand management, electricity load adjustment.

Chairman of Vietnam Oil and Gas Group

Directly concentrate, urgently implement and speed up the progress of the B gas – power project, immediately report to the authorized issues (if any), take full responsibility if causing delays in issues under their jurisdiction, have the final Investment Decision (FID) as soon as possible, ensure that the progress has the first gas flow in the 4th quarter of 2026.

Focus on directing the implementation, solving difficulties in the projects entrusted as the investor, report to the State Capital Management Committee in enterprises and relevant agencies the issues that exceed their jurisdiction.

Closely coordinate with the Gas Field Owner, the gas power plant owner, and the Chairman of Vietnam Electricity Group in implementing solutions in the process of implementing the supply plan, prioritizing gas mobilization for electricity production to meet electricity consumption demand, ensuring the optimal efficiency of the gas – power chain and national interests.

Urgently direct the study and propose solutions to restructure the gas market, the gas industry infrastructure suitable for the Competitive Energy Market Plan.

Chairman of Vietnam Coal and Mineral Industries Group and Northeast Corporation

Implement strictly, effectively the tasks assigned by the Prime Minister on intensifying state management of production and business activities of coal mining and supplying coal for electricity production; tasks, solutions to develop the coal market according to the Competitive Energy Market Development Plan.

Implement synchronized, resolute, and effective measures to direct, operate, and organize production in order to improve the capacity, productivity, and output of coal exploitation in the country; closely monitor and follow the weather conditions to arrange and plan coal exploitation properly; import coal for blending to supply electricity in a reasonable and efficient manner; focus on domestic coal production.

Be proactive in reviewing, balancing the supply and demand of coal production in the country with priority given to providing enough coal for electricity production according to the signed contract; develop plans for coal production, intermediate storage warehouse, coal reserves, transportation means, rapid response, control extreme scenarios that may occur, etc. to ensure sufficient and stable supply for thermal power plants, contributing to national energy security; absolutely not allowing power plants to run out of coal.

Investor of thermal power plants

Implement strictly, effectively the tasks assigned by the Prime Minister in Directive No. 29/CT-TTg dated December 2, 2019 on continuing to strengthen state management of coal business and coal supply for electricity production according to the market mechanism.

Arrange and ensure sufficient primary fuels to supply stably, continuously according to the mobilization requirements of the power system throughout the existence of the plants; especially accurately calculate the amount of coal to be self-arranged for generating electricity in addition to the coal volume committed to being supplied by Vietnam Coal and Mineral Industries Group and Northeast Corporation to be fully and timely prepared for electricity production according to the market mechanism.

Regularly review, update, calculate the demand for primary fuel for power production to ensure close to the actual situation and power demand by season and region to prepare fuel in advance to meet the mobilization requirements of the power system and maintain reasonable reserves operation of the power plant. Never allow a situation where the units are ready to generate electricity but lack fuel, leading to insufficient capacity or having to stop the units.

Strengthen the management of the quality of input coal to ensure technical specifications to improve the performance of power generation units, minimize incidents caused by coal quality; operate stable, reliable units to meet the mobilization requirements of the power system.

Complete the calculation of the demand for coal for electricity production and sign coal supply contracts for electricity production annually before December 1 of the preceding year, and report on the results of the implementation to the Ministry of Industry and Trade before December 10 every year (along with the demand for coal and signed supply contracts with all supplying units) to serve the construction of the coal supply Chart for power production. Strictly implement the commitments in the signed coal purchase contracts.

Request the Ministers, Heads of Ministries, equivalent to the Ministry, Heads of Agencies under the Government, People’s Committees of provinces, centrally-run cities, Chairmen of Member’s Council, and General Directors of Corporations: Vietnam Electricity Group, Vietnam Coal and Mineral Industries Group, Vietnam Oil and Gas Group, the Northeast Corporation, and relevant organizations and individuals to strictly implement this Directive./.

Nhat Quang