Vietnam's state power company, EVN, has requested local coal producers to increase coal supply to power plants during the second quarter of this year, potentially leading to reduced supply to other industries.
Vietnamese news sources indicate that EVN has also called for state-owned enterprises Vinacomin and Dong Bac Group to lower the prices of coal used for electricity generation.
EVN, Vietnam's sole electricity distributor, has warned of potential power shortages in the northern region this summer due to a decline in hydroelectric and thermal power generation.
The company states that due to low stock levels, Vietnam's thermal power plants are facing a coal supply gap of up to 1.3 million tonnes, which could significantly impact electricity generation, particularly in the first half of this year.
Statistics from Vietnam's General Statistics Office showed a 1.9% year-on-year decrease in coal production to 16.6 million tonnes during the period of January to April this year. Meanwhile, Vietnam's customs data revealed a 28.08% increase in coal imports, reaching 12.05 million tonnes in the first four months of this year.
Furthermore, EVN highlighted in a report that the potential prolonged impact of El Nino weather conditions throughout the second half of the year, resulting in reduced rainfall and declining water levels in reservoirs, thereby lowering the efficiency of hydropower plants.
With current low water levels, Vietnam's hydropower system is projected to have a remaining electricity generation capacity of approximately 4.5 TWh, representing a reduction of 1.6 TWh compared to the initial plan and a year-on-year decrease of 4.1 TWh.
EVN anticipated a 15% increase in electricity consumption during the summer months of May to July in the northern region compared to the same period last year. The projected power deficit is estimated to range from 1.6 to 4.9 GW. There are already indications that Vietnam's power demand may surge this year due to extreme weather conditions.
(Writing by Alex Guo Editing by Harry Huo)
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