Urgent Instructions from Prime Minister Regarding Direct Electricity Trading Policy Implementation

Prime Minister Pham Minh Chinh has asked the Ministry of Industry and Trade and related agencies to promptly complete and submit a mechanism to the competent authority to issue a policy for direct electricity trading between power generation units and large electricity customers; not to let people and businesses worry about electricity.

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Prime Minister Pham Minh Chính: No power shortages for production, business, or consumption under any circumstances – Photo: VGP/Nhật Bắc

On April 20, at the Government headquarters, Prime Minister Pham Minh Chính chaired a meeting of the Government Standing Committee on ensuring electricity supply in 2024 and beyond, especially during the 2024 peak summer season.

In his opening remarks, Prime Minister Pham Minh Chính noted that production and business are recovering, and the weather is about to enter the peak hot season, leading to an increase in electricity consumption.

Recalling the local power shortages in 2023, the Prime Minister emphasized that this year, the focus must be on operating and strengthening electricity transmission capacity; and increase inspections and supervision to avoid “waiting for the flood to come to the foot of the dike”.

Separate plan for electricity supply during the dry season peak months

Electricity consumption during the dry season (May to July) is forecast to grow very high (up to 13%, much higher than the plan of about 9.6%), with the northern region expected to grow by a record 17% compared to the same period in 2023.

According to the Ministry of Industry and Trade, given the unfavorable hydrological developments in the first three months of the year, to implement the goal of maximizing savings of hydroelectric reservoir water, thermal power sources, especially coal-fired thermal power, have been highly mobilized to meet the load demand, while at the same time increasing electricity transmission from the South and Central regions to the North.

Although electricity demand is higher than forecast, the national electricity system has met the actual electricity consumption in the first three months of the year, especially during the Lunar New Year and the Tet holiday. In the first quarter of 2024, the cumulative electricity output reached 69.34 billion kWh, an increase of nearly 12% compared to the same period in 2023; average daily electricity output reached 762 million kWh, an increase of 10.4% compared to the same period in 2023.

To ensure electricity supply in 2024, especially during the dry season peak, since November 2023, the Ministry of Industry and Trade has coordinated with the Electricity of Vietnam Group (EVN) and other ministries, sectors, and units to develop a plan for electricity supply in 2024; develop electricity distribution plans; scenarios for balancing electricity output; balancing the capacity of power plants; implementing solutions for operating power plants; and promoting investment projects to build electricity works.

Ministry of Industry and Trade: Electricity supply for 2024 will basically be secured

The Ministry of Industry and Trade has issued decisions approving the electricity supply and power system operation plan for 2024; coal supply schedule for power generation; gas supply plan for power generation; in particular, approving a separate plan for electricity supply during the dry season peak months from April to July 2024.

In addition, it is closely monitoring the supply of coal and gas for power generation; organizing working groups to inspect the preparation for electricity supply during the dry season at power generation, transmission, and distribution units; and urging the progress of the Quang Trach – Pho Noi 500 kV transmission line to be able to supply electricity during the peak month.

On that basis, the Ministry of Industry and Trade affirmed that the electricity supply for 2024 will basically be secured.

In the coming years, after the Quang Trach – Pho Noi 500 kV circuit 3 transmission line is put into operation with all necessary technical conditions, the northern power system will be supplemented with increased capacity/energy from the Central and Southern regions.

However, with hydropower accounting for more than 32%, the regional supply and demand in the northern region will often experience imbalances in the event of hydrological conditions being affected by climate change or incidents at coal-fired thermal power plants. Therefore, it is essential to add new power sources, especially baseload power sources, for the North as soon as possible…

Not to cause power supply concerns for residents and businesses, urgently submit for promulgation of a policy for direct electricity buying and selling

In his concluding remarks, Prime Minister Pham Minh Chính said that the increasing demand for electricity for production, business, and consumption is a positive sign because it shows that the economy and society are developing, while also contributing to growth.

The reports and opinions at the meeting show that there is no shortage of basic electricity sources and fuel is being supplied. However, the Prime Minister emphasized that it is necessary to have appropriate, intelligent, smooth, and effective management with comprehensive solutions, diversify electricity sources, urgently complete power transmission lines, and promptly remove related legal obstacles.

Regarding the electricity buying and selling mechanism and policy, the Ministry of Industry and Trade and other relevant agencies must urgently finalize and submit to the competent authority to issue mechanisms and policies for direct electricity buying and selling between power generation units and large electricity consumers; mechanisms to encourage the development of rooftop solar power installed in private homes, government offices, and industrial parks for self-production and self-consumption; mechanisms and policies to develop offshore and coastal wind power, and policies for waste power, biomass power, etc.

Regarding electricity prices, the Prime Minister requested that agencies and units implement them in accordance with regulations and their authority, with an appropriate roadmap, without “jerky movements”; the electricity sector must promote cost savings, enhance the application of digital transformation, increase competitiveness, and reduce compliance costs for residents and businesses. Electricity prices must be reasonable, with healthy competition and regulation by the State.

The Prime Minister assigned the Government Office to receive the opinions at the meeting and complete and issue a notice on the conclusions of the meeting for timely and effective implementation; gather and classify proposals and recommendations at the meeting to submit to the Prime Minister for assignment to ministries and branches for processing, under the direct direction of the Deputy Prime Ministers.

Dong Tu

SOURCEvietstock
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