Renewable increase cuts Vietnam coal burn in 1Q

An increase in hydro and renewable output in Vietnam cut the country's coal burn on the year in the first quarter, despite an increase in overall power generation.

Vietnam's coal burn declined by 12pc on the year to 29.8TWh in January-March — a 1.6mn t drop to 11.2mn t of NAR 5,700 kcal/kg-equivalent coal burn at 40pc efficiency — as exports to the country also fell.

The country almost tripled its generation from renewables on the year in the first quarter to 7.8TWh, up from 2.8TWh a year earlier and 99GWh in the first quarter of 2019, according to data from grid operator EVN. First-quarter hydro output rose by 55pc to 13.9TWh from 8.9TWh in 2020 and exceeded the 12.8TWh generated in 2019.

Vietnam's increased renewables and hydro output meant that demand for coal reduced despite overall power generation increasing. The country's first-quarter power generation increased by 4pc on the year to 59.7TWh, up from 57.3TWh in 2020 and 53.9TWh in 2019.

Thermal coal exports to Vietnam retreated to their lowest since August 2018 in January, down to 1.4mn t from 2.5mn t in 2020 and 1.9mn t in 2019. Indonesian exports for Vietnam halved on the year to 577,000t in January, while exports of Australian coal fell by a quarter to 588,000t. South African exports to Vietnam declined by three quarters to 55,000t, while exports of Russian coal fell by 38pc to 174,000t.

Overall seaborne imports of thermal and coking coal to Vietnam declined by a fifth on the year to 8.8mn t in the first quarter, provisional Vietnamese customs data show. This was down from a revised 11.2mn t a year earlier.

By Robert Preston

Vietnam power generation TWh