Vietnam needs $130 billion electricity system upgrade

Averagely, the country needs $12 billion investment annually for the upgrade. About 75% of the amount will be used for electricity production and the rest for the power grid development. Private sector is encouraged to participate in power grid investment.

According Vice Premier Dung, the country has huge demand for power grid development.

Of the $12 billion, $9 billion will be invested for power production and $3 billion for grid expansion. "It is very difficult to mobilize this investment capital. This is the main cause of the delay for several power projects in recent years," said the Government leader.

The investment in power generation is facing unbalanced situation. The southern region consumes more than 50% of the power, but produces only 40% of the country’s total electricity. The Government plans to continue construction of the North-South transmission line No. 3 to regulate the electricity to the Southern provinces and cities.

Vietnam needs $130 billion for upgrading electricity system. Photo courtesy of EVN

Buying electricity from Laos

The Government leader suggested to import of electricity to ensure national defense and security, especially giving priority to cooperation in electricity development with Laos.

"Industry and Trade Minister Tran Tuan Anh has reported cooperation with Laos. This is a consistent view of the Party and the State, including cooperation in power trading between Vietnam and Laos, taking advantage of each other's advantages, "said the Deputy Prime Minister.

The representative of the Government said that it would speed up the gas and electricity chains, especially Blue Whale and Block B. The field can supply gas for O Mon 4 projects with a capacity of about 3,600 MW.

With the Blue Whale field, the gas reserves are about 150 billion cubic meters of gas and supply to five plants. The gas and electricity clusters such as Ca Na, Long Son, Bac Lieu will also be overcome difficult situation soon.