"Vietnam's power crisis continues"

"Vietnam's power crisis continues"

Particularly in 2004, 2005, it was a serious problem. This was caused by reservoir empty in large-scale hydropower stations, failure of coal-fired and gas-fired thermal plants and delay of new installation. At the time "Mizuho" report said that, in this situation, the Japanese government, the World Bank and other cooperation intensively implemented the measures, and that the experience will bring about good results in the near future.

But, I had gotten away from some time on Vietnam, and, again in 2008, she have become increasingly serious power shortage. On July 17, 2008, EVN's president gave an unusual apology to the people of Vietnam at the conference. He explained that the power shortage was caused by new power plant delays operation, multiple power plant accident stop, and south of the dam's water level decline; the three points. The traditional cause has not been improved. He said it would be in September.

However, today's article said that, even though the the water level of hydroelectric power stations are recovering and the peak season has passed, power in the morning and evening peak time has been still restricted. Public and corporate discontent is rising. In particular, the people accused EVN for its power failure without planning. Rolling blackouts may prevent damage to a certain extent. However, the sudden power outage happen could not be coped with.

Today's report, the potential demand may be 11,000 ~ 12,000 MW and the real output is 10,200 MW, which causes shortage of the daily, 800 ~ 1,800 MW. Therefore, in the morning peak, 9:00 to 11:00 and the evening peak, between 6 pm to 9 pm, the electricity use has been restricted. It is said, EVN's deputy general director, Dang Hoang An.

On August 15, 2006, I noted Vietnam's power structure. So has been steady growth in Vietnam, where power is messed-up? I am thinking that, when EVN powerful organization was established, it had private sector development in coming, but it was not fully digested by the Ministry of Industry and EVN to deal with it. It is mainly centered on the issue of electricity rates.

In this respect, China is also similar to the conditions. If to think inflation in economic and voice of the people, dare to raise electricity rates are not. Currently, it is KWh 4.5 per cent, the lowest level in Southeast Asia, but the IPP, while private investment is increasing, and EVN must be unique off-taker. What I think is there is the inconsistent. Also noted in my last, as follows.

"About 10 years ago, American companies were supporting the prime minister and deputy prime minister, to promote large-scale investment in power generation. However, it was collapsed because EVN can purchase only four cents per KWh. EVN still in electricity rates are low and a level of 4.5 cents. EVN is unable to get the sale agreement with IPPs without the government's perspective to raise electricity prices.However, the government is insisting that the hydroelectric power of 40 percent for the system are older, and 60 percent of the 4.5-cent cost of new power plants, and four cents more than the cost is impossible."

Reference
September 8, 2008

Vietnam
●080908A Vietnam, vietnamnewsElectricity shortages continue as things cool off across the countryhttp://vietnamnews.vnagency.com.vn/showarticle.php?num=05ECO060908

India
●080908B India, Economic TimesDVC gears up for power generation in 4 yearshttp://economictimes.indiatimes.com/News/News_By_Industry/Energy/Power/DVC_gears_up_for_power_generation_in_4_years/articleshow/3455973.cms

Indonesia
●080908C Indonesia, The Jakarta PostTap water resources to generate badly needed electricity http://old.thejakartapost.com/detailfeatures.asp?fileid=20080907.S20&irec=19

China
●080908D China, China ViewMutual understanding in clean energy(China Daily)http://www.chinadaily.com.cn/bizchina/2008-09/08/content_7007475.htmower-plant-output.html

"Indonesia's second Crash Program"

"Indonesia's second Crash Program"
(Please refer to my website also.)
http://my.reset.jp/~adachihayao/indexE.htm?lang=en

Here is my memo dated May 2004. In 2002, the Paiton coal-fired power transmission lines and the upgrade of power facilities were not going smoothly. At the time of President Megawati, it was severe in Java-Bali system of power supply and demand.

In the end of 2003, President Megawati visited to Japan. She called on Sumitomo's president, at that time, Mr. Oka, and requested him to have for the next candidate of the leading coal-fired Tanjung Jati B's solicited input. At that time, no one knows what will happen to IPPs in Indonesia. Even though the Javanese still has many risks for power development in Indonesia, Mr.Oka responded to the president's request meeting directly. This Sumitomo's bold decision is still our mind in one's brain.

As of today, while Sumitomo is defending the silence, but Indonesia's Energy and Mineral Resources Ministry's director general for electricity and energy usage, Mr. J. Purwono disclosed the fact that Sumitomo will be again the lead-off the Second Crash Program, which, presently, the government is now formulating. This is the article in the Jakarta Post today.

Performing the same location, Central Java Tanjung Jati B coal-fired power plant, the size of the same with a single 660 MW, 2 machines, for a total of 1,320 MW of coal-fired are planned. It is said that the total project cost of 1.5 billion US $ and, KW 1,136 per dollar, which may reflect the recent material the slightly higher prices. PLN is to purchase with KWh per 4.3 cents, as the prospect of being written, it is somewhat cheaper.

In the article, JBIC is funding the full support. However, the Japanese side has not yet announced. This may be finalized by the end of this year. Bids for electricity sales recently may be around KWh 4 ~ 5 cents, and that the Japanese side is silent on that the electricity sales, or this may have been a bid.

Supply and demand in Indonesia has, as reported earlier, the tightrope every day. During the current Ramadan, 2 to 3 percent increase in demand. In the first of 10,000 MW coal-fired Crash Program is being made and may be delaying in rather late in 2010 to start operation.

At this stage, the Indonesian government is planning the second phase of the 10,000 MW of the Crash Program. Its contents are not yet to materialize, and they are observing the renewable energy to be pushed to the front. The project by Sumitomo Corp., the second party then, is to start operation by 2011.

Reference
September 7, 2008

Pakistan
●080907A Pakistan, Daily TimesCDWP likely to take up 43 projects worth Rs 199.077bnhttp://www.dailytimes.com.pk/default.asp?page=2008%5C09%5C07%5Cstory_7-9-2008_pg5_3

Philippines
●080907B Philippines, Manila BulletinMeralco agrees to open books to COA as directed by ERC http://www.mb.com.ph/BSNS20080907134488.html

India
●080907C India, Economic TimesNSG waiver to India will boost power industry NPCILhttp://economictimes.indiatimes.com/News/News_By_Industry/Energy/Power/NSG_waiver_to_India_will_boost_power_industry_NPCIL/articleshow/3452633.cms●080907D India, Economic TimesDamodar Valley Corp to produce 3,500 MW in Jharkhandhttp://economictimes.indiatimes.com/News/News_By_Industry/Energy/Damodar_Valley_Corp_to_produce_3500_MW_in_Jharkhand/articleshow/3452889.cms

Indonesia
●080907E Indonesia, The Jakarta PostSumitomo to invest $1.5 billion to increase power plant outputhttp://www.thejakartapost.com/news/2008/09/06/sumitomo-invest-15-billion-increase-power-plant-output.html