Thailand, May 2009

Mekong Energy and Ecology Mekong Energy and Ecology NetworkNetwork

The First Mekong Energy and Ecology Training

1. Status of Electricity Sector2. Fuel Sources for Electricity

Generation3. Status of Renewable Energy4. Procedure for Making PDP5. Power Sector Issues

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3

Energy Sector in Vietnam

G overnm ental Offi ce M inistry of P lanning and I nvestm ent

M inistry of Finance M inistry of Natural Resource and Environm ent

M inistry of Science and Technology M inistry of Agriculture and Rural Developm ent

M inistry of Transportation

D epartm ent of Energy D epartm ent of Science and T echnology

D epartm ent of T echnica l Safety Electricity Authority Regulartory of Vietnam

Pow er P lants

NPT

Pow er Com panies

Electric ity of V ietnam

ExplorationCom panies

O il Product I m porters

R efinery

Gas processing

Pow er P lants

Petro V ietnam

M ining Com panies

Coal Exporters

Pow er P lants

Vinacom in Petrolim ex andother oil p roduct im porters

I PP s

M inistry of I ndustry and Trade

G overnm en t of Vietnam

GDP had increased at 7.75%, while electricity production and consumption at 14.25 and 14.67% annually

4

-

50

100

150

200

250

300

350

400

450

500

-

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

2000 2001 2002 2003 2004 2005 2006 2007

Thou

sand

bill

ion

VN

D

GW

h

Year

Electricity Production Electricity Consumption GDP

Total installed capacity is more than 13,000 MW with hydropower, coal, gas, oil and import

IPP generating capacity includes coal, gas, hydro and renewable power

5

Hydro33%

Coal fired11%

Oil fired2%

Gas fired24%

Diesel + Small hydro3%

IPP23%

Import4%

6

-

10,000.0

20,000.0

30,000.0

40,000.0

50,000.0

60,000.0

70,000.0

80,000.0

2000 2001 2002 2003 2004 2005 2006 2007

GW

h

IPP + Import

Diesel + Small hydro

Gas fired

Oil fired

Coal fired

Hydro

Peak demand had increased at 12.7% annually while capacity at 11.8% In 2007, peak demand was 11,286 MW

7

-

2,000.0

4,000.0

6,000.0

8,000.0

10,000.0

12,000.0

14,000.0

16,000.0

2000 2001 2002 2003 2004 2005 2006 2007

GW

h

Installed capacity

Peak demand

Total electricity consumption in 2007 was 58,414 GWh Industrial and residential shares accounts for 90% of total

consumption8

295338

382435

478540

610

695

0

100

200

300

400

500

600

700

800

-

10,000.0

20,000.0

30,000.0

40,000.0

50,000.0

60,000.0

70,000.0

2000 2001 2002 2003 2004 2005 2006 2007

kWh/

pers

on.y

ear

GW

h

Others

Residential

Service

Industrial

Agricultural

Consumption per capita

Coal and gas are currently main fuels for power generation Coal is main fuel in future including domestic and imported coal

types

9

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

2000 2001 2002 2003 2004 2005 2006 2007

Peta

Joul

es Natural gas

Diesel oil

Fuel oil

Coal

Hydropower: Potential mainly concentrated to the northern and southern regions Coal-fired power plants: The coal-fired power plants are currently mainly concentrated to the

northern region where the coal reserves are located. Coal may however be transported from the north or imported from outside (e.g. from Australia) that will facilitate coal-fired power plants also in the central and the south.

Gas-fired power plants and combined cycle gas turbines (CCGT): The gas-fired power plants are mainly concentrated to the southern region where the offshore gas reserves are located. Gas reserves are however limited and other types of energy sources will be required to cover the future demand in the southern region.

Nuclear power: Uranium for nuclear power plants will need to be imported due to limited domestic resources.

Import of hydropower: Import will be to the northern (mainly from China) and central (mainly from Laos) and southern parts (mainly from Cambodia).

Renewable energy, including small hydropower: Renewable energy (500 MW) and small hydro (1,400 MW) are mainly being used for rural electrification in remote areas that for economic reasons may not be connected to the national grid.

Pumped storage hydropower: Pumped storage plants (4,200 MW) will used to produce peak power using surplus base load energy during the pumping mode.

Diesel and oil-fired plant: (-485 MW) will be taken out of service as they are the most expensive power plants to operate.

Energy efficiency and conservation

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Peat Deposit in the Mekong River

Delta

Di Linh

Coal Deposit

Ba River

Coal Deposit

Nong Son

Coal Deposit

Quang Ninh

Coalfield

An Chau - Thai Nguyen Coalfield

Na Duong

Coal Deposit

Red River Delta

Concave Area

Black River

Coalfield

Nghe Tinh

Coalfield

Electricity consumption is projected to increase at 14% during 2010-2020 and 7% during 2020-2030

Industrial and residential sectors are two main consumers

12

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

2005 2010 2015 2020 2025 2030

GW

h

Others

Residential

Service

Industrial

Agricultural

Coal will be the main source for power generation including domestic and import coal types

Nuclear power is expected to come in 2020

13

-

100,000

200,000

300,000

400,000

500,000

600,000

700,000

2010 2015 2020 2025

GW

h

Import

Nuclear

Renewable

Hydro

Gas

Coal

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Ministry of

Industry

Consultant (i.e. Institute of Energy for the series of PDP 1

to 6)

Government

Assigning a consultant to make PDP

Submitting PDP to Ministry of Industry for appraisal

Submitting PDP to Government for

approval

Prime Minister’ decision on approval of PDP

National Appraisal Commission for PDP (headed by Ministry of Industry; including other related ministries and institutions)

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Coal19.894%

Oil27.294%

Gas11.390%

Hydro9.811%

Nuclear0.000%

Electricity0.074%

Woodfuel19.633%

Rice Husk2.053%

Straw4.252%

Baggase1.387%

Other biomass3.787%

Landfill Gas0.003%

Wind0.001%

Solar0.006%

Geothermal0.000%

Tidal0.000%

Small Hydro

0.300%

Biogas0.113%

Bio Ethanol0.000%

Bio Diesel0.000%

Other31.536%

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Coal17.285%

Gas45.701%

Petroleum Products3.377%

Large Hydro 32.043%

Nuclear Power 0.000%

Small Hydro 0.981%

Biomass power 0.011%

Windpower 0.005%

Solar 0.020%

Geothermal 0.000%

Tidal 0.000%

Autoproducer CHP Plant 0.577%

Other1.594%

Growing power demand Energy efficiency Environmental impact Power supply capability Power sector reform Tariff setting

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