Vietnam is pushing to import electricity from neighbouring countries due to worrying power shortage concerns for the near future.

Vietnam Electricity (EVN) started the construction of the Monsoon-Thanh My 500kV transmission line project on September 30, with a total investment of $45.26 million.

The line is expected to be put into operation by the end of 2024 and will transmit a maximum capacity of about 2,500MW, contributing to improving the operating capacity of the national power system through importing electricity from Laos.

According to the power purchase agreement (PPA), for the first phase, the line will receive electricity imported from Laos wind power sources with a capacity of 600MW, and the expected average annual electricity output is about 1.7 billion kWh.

EVN had previously asked the Ministry of Industry and Trade to complete a dossier on importing electricity from hydroelectric and wind power plants in Laos such as the Nam Mo hydroelectric plant cluster and the Houay Kaouan hydroelectric plant.

As of August, EVN has signed 19 PPAs with investors to buy electricity from 26 power plants in Laos to sell electricity to Vietnam, with a total capacity of 2,240MW.

Negotiating the purchase and sale of electricity from Laos is of great significance, the state utility has said. By 2025, very few new power sources will be introduced, so, during the peak dry season of 2025, the power supply in the northern region will be difficult to maintain. Electricity capacity may be short by 3,630MW and output short of about 6.8 billion kWh in May-July 2025.

Therefore, the group believes that adding imported electricity sources from Laos to the northern region will contribute to enhancing the ability to ensure electricity supply in the next couple of years.

Minister of Industry and Trade Nguyen Hong Dien explained that in the newly approved Power Development Plan VIII, there is a direction to export renewable energy electricity to neighbouring countries to ensure economic efficiency. In addition, the mobilisation of domestic renewable energy power sources will be thoroughly implemented by the power industry, if those projects ensure full legal framework.

In addition to Laos, Vietnam has imported electricity from China for many years, also considered a long-term measure to ensure electricity supply. Vietnam imports electricity from China mainly through the border gates at Ha Giang and Lao Cai provinces. However, due to limitations on 220kV lines, increasing capacity to import electricity from China is not possible.

In a June conference, energy expert Ha Dang Son said that electricity shortages were warned of two years ago, especially for the north.

“There is a big risk to the power supply because the north has almost no new sources. Even the Thai Binh 2 thermal power plant took nearly 10 years to be successfully connected to the grid, and it also often encounters problems. Renewable energy in the north is simply more difficult to build than in the central region or the south,” he said.

Vietnam Investment Review