A heatwave in parts of Vietnam has exacerbated pressure on the national grid as power demand increased, prompting the county to import and burn more coal at power stations while renewing calls for conserving electricity.
Peak power demand in Vietnam's northern region reached 23.57GW between 21-27 July, rising by 1.2GW from the previous week, state-owned utility EVN said. Daily electricity consumption hit an all-time high in Hanoi on 27 July with the maximum temperature recorded at 37°C. The hot weather conditions prevailed in several parts of Vietnam between March-July, with the northern region recording temperatures as high as around 44°C in early May.
The heatwave has complicated problems for authorities to manage the power load, with reduced water levels in several hydropower reservoirs, crimping hydropower generation and lifting the country's reliance on coal-fired generation. Vietnam's power generation reached 134.98TWh during January-June, up by 1.4pc over the same period a year earlier. Coal-fired generation rose to 66.76TWh, rising from 55.79TWh a year earlier and accounting for 49.5pc of overall power generation in this year's first half, according to EVN data. Coal-fired power accounted for 45.3pc of the generation mix for January-March.
Vietnam's hydropower generation slipped to 29.83TWh during January-June, down from 41.58TWh a year earlier. Generation from renewable energy sources and natural gas reached 19.5TWh and 15.4TWh respectively, edging higher from 19.2TWh and 15.2TWh in January-June 2022. The country's total installed generation capacity is around 78GW, EVN said.
Authorities have directed utilities, the National Load Dispatch Centre and Electric Power Trading to ensure steady power supplies this year. Coal suppliers Vietnam National Coal and Mineral Industries and the Northeast Corporation have been requested to meet EVN's coal demand, especially given a weaker trend in domestic coal production. Domestic coal output in the first half was 25.14mn t, down from 26.4mn t a year earlier, data from the country's General Statistics Office show.
Coal imports rose to around 24.2mn t in January-June, according to provisional customs data, up from 16.65mn t for the same period a year earlier. Vietnamese customs data do not differentiate between coking and thermal coal. Higher coal-fired generation has supported the outlook for thermal coal imports. Monthly coal imports have averaged around 4mn t after a surge in Vietnam's intake in June. If the country continues to import at this rate, its seaborne receipts could rise to 48mn t this year, up from 32mn t in 2022. Its imports hit an all-time high of around 55mn t in 2020, as buying interest was supported by drop in international coal prices following the Covid-19 pandemic.
This year's increase in coal imports also comes as international prices have eased. Argus last assessed Indonesian GAR 4,200 kcal/kg coal at $52.20/t fob Kalimantan on 28 July, down from $90.41/t fob Kalimantan at the start of the year. The price had hit a high of $154.21/t fob Kalimantan on 22 October 2021, after rising steadily from a low of $22.40/t on 11 September 2020.
Power saving
EVN has advised local authorities, businesses, commercial and residential consumers to ensure economical and efficient use of electricity.
The utility has asked industrial units and large-scale electricity consumers to implement voluntary load adjustments to reduce electricity consumption. It has asked households to reduce consumption and advised them to not set air-conditioner temperatures below 26-27°C.
EVN has asked Hanoi residents to limit the use of high-capacity equipment during peak hours of 10am-4pm and 7-11pm daily.
"Energy is not an endless resource," EVN said, requesting consumers to balance their needs and habits and urging them to use energy-saving power equipment.
Rain and thunderstorms are forecast in Vietnam's northern region this week, according to the national meteorological service. This may help bring temperatures down and reduce power demand, while also supporting the prospects of increased hydropower generation, EVN said.
