Vietnam: Power generation cost increases due to fluctuations of fuel prices

Vietnam: Power generation cost increases due to fluctuations of fuel prices

According to Mr. Dang Hoang An, General Director of Electricity of Vietnam
(EVN), with the increase in domestic coal prices for electricity production
and updating the input parameters such as the prices of imported coal, oil,
gas and exchange rates in comparison with parameters used for calculation
in plan of the first 9 months of 2016, the total power generation and
business costs of EVN will increase about VND 7,230 billion in 2017.

According to Mr. An, in order to carry out the direction of the government,
EVN will drastically manage in optimization of power system operation,
thorough savings in to minimize power generation and business costs. In
particular, EVN will strive to additionally reduce power losses from 7.6% as
planed to 7.47%. Up to now EVN has reduced power purchase costs by VND 363
billion.

Mr. An also informed that, EVN was and is implementing the optimal operation
of the power system by mobilizing more hydropower generation, less coal
fired thermal power generation in comparison with the plan, and no oil power
thermal generation, that led to reducing generation costs by VND 2,170
billion.

From the beginning of 2017, EVN assigned plans to its members to save 5% of
the costs, equivalent to VND 844 billion and asked them increase savings up
to 7.5% of nominal costs that led to the total saving costs of VND 1,266
billion (VND 422 billion higher than the plan of early 2017).

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

Link to Original Article:
http://nangluongvietnam.vn/news/en/electricity/power-generation-cost-increas
es-due-to-fluctuations-of-fuel-prices.html

--- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com