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  Business

Power sector facing great challenges ahead

The 500KV Phu My- Nha Be electric power line

By the end of 2004, Electricity of Vietnam (EVN) had fulfilled the key targets of a five-year plan (2001-2005). Therefore, while implementing the five-year plan, EVN will gain certain advantages but will be able to encounter numerous challenges due to high demands for power use.

Since early this year, low water levels at hydro-power plants due to prolonged droughts have led to a reduction in hydro-power output and EVN has had to buy power from other sources (accounting for between 19-21 percent of the power output of the entire national grid). On the other hand, investment costs such as prices of materials, fuels and exchange rates of foreign currencies were higher than those in 2004, posing many difficulties for profit making this year.

In the light of such a situation, from the beginning of 2005 EVN has tried to continue ensuring sufficient supplies high quality and safe power for the national economy. EVN has effectively tapped power sources, efficiently operated systems, reduced production costs and intensified construction investment to increase efficiency and revenues from other activities such as public telecommunications, power engineering, and information technology. EVN has offered internal competitive power prices and prepared power sources and networks for a next five-year plan (2006-2010) by enhancing the production of mechanical equipment of power plants and networks and fulfilling the generation of 51.75 KW of power as proposed by the State. EVN has devised measures to satisfy different demands for power use and reduce losses caused by power energy to 11.4 percent.

EVN will allocate more than VND25,000 billion to run power generator No1 at Se San 3 hydro-power plant, expand the Phu My 500-KV plant, the 500-KV Nha Be power station and the Da Nang-Ha Tinh 500 KV transmission line to ensure adequate power supplies to the north. In 2005, EVN will finalise procedures to start the construction of seven power projects in the country. Another seven 500 KV- transmission line projects, three 220V power grid projects and 129 110V power grid projects will begin construction in the near future.

In the first quarter of this year, EVN equitised Thu Duc power company, Thac Ba and Pha Lai hydro-power plants and other member companies of EVN. EVN has built a project to develop a power optical cable network and build a (Code Division Multiple Access) CDMA system telephone station.

In 2005, EVN will increase its total investment capital by 20 percent to develop national power networks and ensure safe power supplies. In the international integration process, EVN should exert every effort to secure footholds in markets and play a leading role in supplying power to the nation.

VOV - (11/04/2005)


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