Power projects urged to overcome gridlock, delays

09:27 | 20/03/2020 Industry

(VEN) - Deputy Minister of Industry and Trade Hoang Quoc Vuong, who also serves as Deputy Head of the Steering Committee for National Power Development, has urged relevant agencies to avoid power project schedule delays.

power projects urged to overcome gridlock delays

Under the adjusted Power Plan VII, 21,650 MW of power sources were expected to be put into operation during the 2016-2020 period. The Vietnam Electricity (EVN) has completed construction of 12 projects with total capacity of 6,100MW; and 10 other key projects are under construction.

Meanwhile, the Vietnam Oil and Gas Group (PVN) was assigned to implement three projects but all of them have faced difficulties and are unlikely to be completed on schedule.

The Vietnam National Coal and Mineral Industry Group (TKV) has implemented four projects with total capacity of 2,950 MW. Two ongoing projects will not be completed on schedule and two others have not begun.

Of the 19 projects Build-Operate-Transfer (BOT) projects, with total capacity of 27,000MW, four are operational, four others are under construction, three have only carried out initial procedures and three are facing legal issues.

Seven projects invested in the form of Independent Power Projects (IPP) with total capacity of almost 2,000MW are also lagging behind, some of them due to capital shortage.

The EVN is focusing on building projects to improve capacity of the 500kV transmission system, synchronize power grid works for thermoelectric centers, power plants, and power grid projects for electricity imports from Laos.

However, the biggest obstacle facing power grid works is the site clearance compensation because of inadequate compensation prices, lack of regulations for the land areas borrowed for temporary construction; and problems related to conversion of forest land use.

The MOIT has recently taken measures to promote key power projects and recommended solutions for power projects that are lagging behind schedule.

At the ministry’s monthly meeting in February, representatives of some corporations also proposed that the Prime Minister direct related ministries, sectors and localities to remove difficulties and obstacles for power grid projects, including the approval of solar power development policies in Vietnam replacing Decision 11/2017/QD-TTg; solving difficulties on conversion of forest land use; determining responsibilities of localities in site clearance compensation; considering the use of ODA capital for urgent electricity projects.

Deputy Minister Vuong said given the supply-demand balance of power resources, Vietnam is facing many difficulties in operating the electricity system for socioeconomic development. Therefore, the MOIT and other relevant sectors need to take more drastic actions to prevent the slowdown of ongoing projects. It is necessary to review and propose specific solutions for each struggling project and report to the government for direction; focus on completing mechanisms and policies to encourage private investment; and quickly implement central directions on energy development strategy to ensure sufficient electricity for sustainable development.

Deputy Minister of Industry and Trade Hoang Quoc Vuong assigned the Electricity and Renewable Energy Authority to handle the proposals of energy groups.

Song Dung