Mekong Energy and Ecology Network The First Mekong Energy and Ecology Training VIETNAM ELECTRICITY SECTOR - AN INTRODUCTION - Thailand, May 2009 CONTENTS 1. 2. 3. 4. 5. Status of Electricity Sector Fuel Sources for Electricity Generation Status of Renewable Energy Procedure for Making PDP Power Sector Issues 2 ENERGY SECTOR IN VIETNAM Energy Sector in Vietnam Government of Vietnam Governmental Office Ministry of Planning and Investment Ministry of Finance Ministry of Natural Resource and Environment Ministry of Science and Technology Ministry of Agriculture and Rural Development Ministry of Transportation Ministry of Industry and Trade Electricity of Vietnam Department of Energy Department of Science and Technology Department of Technical Safety Electricity Authority Regulartory of Vietnam Petro Vietnam Vinacomin Power Plants Exploration Companies Mining Companies NPT Oil Product Importers Coal Exporters Power Companies Refinery Power Plants Petrolimex and other oil product importers IPPs Gas processing Power Plants 3 GDP AND ELECTRICITY PRODUCTION AND DEMAND 80,000 500 70,000 450 GWh 350 50,000 300 40,000 250 30,000 200 150 20,000 Thousand billion VND 400 60,000 100 10,000 50 - 2000 2001 2002 2003 2004 2005 2006 2007 Year Electricity Production Electricity Consumption GDP GDP had increased at 7.75%, while electricity production and consumption at 14.25 and 14.67% annually 4 CAPACITY MIX Import 4% IPP 23% Hydro 33% Diesel + Small hydro 3% Gas fired 24% Coal fired 11% Oil fired 2% 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 GENERATION MIX 80,000.0 70,000.0 60,000.0 IPP + Import GWh 50,000.0 Diesel + Small hydro 40,000.0 Gas fired 30,000.0 Oil fired Coal fired 20,000.0 Hydro 10,000.0 2000 2001 2002 2003 2004 2005 2006 2007 6 INSTALLED CAPACITY AND PEAK DEMAND 16,000.0 14,000.0 12,000.0 GWh 10,000.0 8,000.0 Installed capacity 6,000.0 Peak demand 4,000.0 2,000.0 2000 2001 2002 2003 2004 2005 2006 2007 Peak demand had increased at 12.7% annually while capacity at 11.8% In 2007, peak demand was 11,286 MW 7 ELECTRICITY CONSUMPTION 695 60,000.0 610 540 GWh 50,000.0 435 40,000.0 30,000.0 295 338 478 382 800 700 600 500 400 300 20,000.0 200 10,000.0 100 - kWh/person.year 70,000.0 Others Residential Service Industrial Agricultural Consumption per capita 0 2000 2001 2002 2003 2004 2005 2006 2007 Total electricity consumption in 2007 was 58,414 GWh Industrial and residential shares accounts for 90% of total consumption 8 FUEL CONSUMPTION FOR ELECTRICITY GENERATION 400.0 350.0 Peta Joules 300.0 250.0 Natural gas 200.0 Diesel oil 150.0 Fuel oil Coal 100.0 50.0 0.0 2000 2001 2002 2003 2004 2005 2006 2007 Coal and gas are currently main fuels for power generation Coal is main fuel in future including domestic and imported coal types 9 OPTIONS FOR FUEL SOURCES 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 10 RESOURCE DISTRIBUTION Red River Delta Na Duong Concave Area Coal Deposit An Chau - Thai Nguyen Coalfield Quang Ninh Black River Coalfield Coalfield Nghe Tinh Coalfield Nong Son Coal Deposit Ba River Coal Deposit Di Linh Peat Deposit in the Mekong River Delta Coal Deposit 11 ELECTRICITY DEMAND FORECAST 800,000 700,000 600,000 Others GWh 500,000 Residential 400,000 Service 300,000 Industrial 200,000 Agricultural 100,000 2005 2010 2015 2020 2025 2030 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 POWER DEVELOPMENT PLANT 700,000 GWh 600,000 500,000 Import 400,000 Nuclear Renewable 300,000 Hydro 200,000 Gas Coal 100,000 2010 2015 2020 2025 Coal will be the main source for power generation including domestic and import coal types Nuclear power is expected to come in 2020 13 PROCEDURE FOR MAKING POWER DEVELOPMENT PLAN Prime Minister’ decision on approval of PDP Government Submitting PDP to Government for approval National Appraisal Commission for PDP (headed by Ministry of Industry; including other related ministries and institutions) Ministry of Industry Assigning a consultant to make PDP Submitting PDP to Ministry of Industry for appraisal Consultant (i.e. Institute of Energy for the series of PDP 1 to 6) 14 RENEWABLE SHARE IN TOTAL PRIMARY ENERGY SUPPLY (2005) Nuclear 0.000% Hydro 9.811% Rice Husk 2.053% Electricity 0.074% Gas 11.390% Straw 4.252% Baggase 1.387% Other 31.536% Woodfuel 19.633% Other biomass 3.787% Oil 27.294% Wind 0.001% Coal 19.894% Bio Diesel 0.000% Bio Ethanol 0.000% Small Hydro 0.300% Biogas 0.113% Landfill Gas 0.003% Solar Tidal 0.006% 0.000% Geothermal 0.000% 15 RENEWABLE SHARE IN POWER GENERATION (2005) Geothermal 0.000% Petroleum Products 3.377% Large Hydro 32.043% Windpower 0.005% Tidal 0.000% Solar 0.020% Biomass power 0.011% Nuclear Power 0.000% Autoproducer CHP Plant 0.577% Other 1.594% Small Hydro 0.981% Gas 45.701% Coal 17.285% 16 CURRENT ISSUES IN POWER SECTOR Growing power demand Energy efficiency Environmental impact Power supply capability Power sector reform Tariff setting 17 THANK YOU!