Press release on operation situation of Quarter I/2018 and targets, tasks of Quarter II

In Quarter I/2018, the Vietnam Electricity (EVN) has assured the stable power supply,  meeting the power demand for activities of socio-culture, business and production and the living of people in localities, especially in festivals, Tet holiday, year-earlier festival activities and the event of the 10th Cambodia – Laos - Viet Nam Summit on Development Triangle Area (CLV). 

The generated and imported power output of the whole system accumulated in the first 3 month of 2018 reached 48.96 billion kWh, an increase of 11.2% over the same period of 2017. In Quarter I/2018, the highest daily output reached kWh 612.6 million (a rise of 7.1% over Quarter I/2017 and the largest capacity of the whole system reached 29,812 MW (an increase of 10.1% over Quarter I/2017).

In Quarter I, the transmission trend was mainly from the North to the Central and the South. The transmission capacity to the South is 4.4 billion KWh (equivalent to 19% of the Southern power demand), the highest transmission capacity in the North - Central interface was 1,980 MW and in the Central - South was 3,608MW.

As accumulated in Quarter I/2018, commercial power output of the entire EVN was estimated to reach 42.2 billion kWh, up 10.49% over the same period last year, of which the domestic commercial power output increased by 10.`6%.

Generally, in the first 3 months of 2018, the power supply management closely followed up the power demand of the whole country and in areas, ensuring mobilization of power sources in accordance with the hydrological situation, gas supply capacity synchronously ensuring the water supply for downstream areas and agricultural production activities. The Group cooperated with the General Department of Irrigation implemented 3 water discharge times serving for irrigating of the 2017 - 2018 Spring Fall Crop in the areas of midland and Northern delta. The total water discharge time was 22.5 days, 1.5 days shorter than the initial plan with the total discharge of 5.74 billion m3. (Of which from Hoa Binh reservoir:  3.80 billion m3, Thac Ba: 0.73 billion m3, Tuyen Quang: 121 billion m3). During the water discharge, the water level of the Red river in Ha Noi was maintained to meet the requirements, facilitating localities to get enough water for the sowing and transplanting of the Spring Fall Crop.  Gas turbines and coal-fired thermal power plants were highly exploited to meet the load demand, of which Vinh Tan 2, 4 and Duyen Hai 1, 3 thermal power plants (TPP) mobilized about 5 billion kWh, making a significant contribution to power supply for the South. The situation of power network incidents in Quarter I of the year declined compared with the same period of 2017.

Also in the Quarter I/2018, Viet Nam Chamber of commerce and Industry (VCCI) held the Provincial Competitiveness Index Statement Ceremony - PCI 2017 in Ha Noi. Whereby, the power supply quality was assessed by the VCCI to be important improvements to maintain its 2nd rank in consecutive 2 years of 2016, 2017. That the power supply ranked the 2nd with 74% of satisfying enterprises (a sharp increase compared to the rate of 69% in 2016) is one of the services with the highest increase level in respect of the satisfaction level of enterprises. 

In construction investment, the EVN’s units have made great efforts in executing and directing the construction in compliance with the 2018 plan, especially those serving for the power supply in dry season and achieved some major results as follows: Vinh Tan 4 TPP granted PAC for TM2 and completed reliable operation for TM1; completed the reliable operation of the two power units of Thai Binh Thermal Power and generated stably in the mobilization method, etc. In Quarter I/2018, EVN and its units commenced 28 projects, accomplished 41 110-500kV power network projects (including: 02 500kV, 6 220kV, 33 110kV projects). Whereby energized important projects such as: Raising the capacity of the Tan Dinh 500kV and Phu My 220kV substations; Raising the capacity of the 220kV substations: Dong Anh, Vung Tau, Duc Hoa; 110kV ones: LG Display, Viet Nhat Steel, Tang Loong 3, etc.

In the Quarter I/2018, the Government issued the Decree on EVN organization and activity Regulations; the Prime minister has approved the business and development investment Plan for 5 years (2016-2020) of EVN. At present, the Group is reviewing, approving the organization and activity Regulations, 5 - year plan for units.

Regarding the restructuring, divestment and capitalization of power generation Corporations: Implementing the initial Public Offering (IPO) of EVNGENCO3 and the transaction on the UPCOM since 21/3/2018. At present, EVNGENCO3 is completing relevant contents to conduct the first general meeting of shareholders. For the capitalization of EVNGENCO2, EVN reported to the capitalization Steering Board of EVNGENCO2 to ratify the enterprise value, reported to the Ministry of Industry and Trade to approve and announce the corporate value of EVNGENCO2.

In March 2018, the Viet Nam Earth Campaign hosted by the Ministry of Industry and Trade attracted the interest, response by 63 provinces, cities across the country. EVN continued responding as the sponsor, for 10 consecutive 10 years, of the campaign with series of commence, response events in many localities and the main event taking place in the evening of March 24th 2018 in Ha Noi. After an hour calling upon response of turning off lights and unnecessary electric devices, the national power system saved up to 485,000 kWh. 

Some major targets, tasks of EVN in Quarter II of 2018

With the assessment that the yearly Quarter II is the peak time of the dry season and the most stressful time of the year in terms of power supply for the whole system, EVN aims to guarantee the safe, stable operation for the power system and power market, meet the power demand in the months of dry season of Quarter II/2018 with the expected growth of about 12.5% compared to the same period, especially in May and June, the predicted system load can reach an average of 650 million kWh/day, the highest capacity of the entire system may rise up to 34.300MW. Coal-fired and gas turbines thermal power sources shall continue to be highly exploited, synchronously hydro-power reservoirs shall be exploited according to the regulatory curve chart, ensuring water supply for downstream areas and stable operation of coal-fired thermal power units. Especially the thermal power plants: Vinh Tan 2, Vinh Tan 4, Duyen Hai 1 and Duyen Hai 3. In case of necessity, oil-fired thermal power units will be readily mobilized to ensure the power supply.

 The National Power Transmission Corporation shall enhance the management and operation of the transmission line corridor and ensure the safe and reliable operation of the power transmission grid, á well as serve high continuous transmission during the dry season, especially the North-South 500kV transmission system. Power corporations shall continuously maintain the electricity saving propaganda when the hot sun occurs in all the 3 regions, especially in the localities, cities of the Central and the South. The units shall strengthen propaganda on mass media to raise the power saving awareness and power safety among the society and enterprise community, especially in the South area. Synchronously, all units under EVN shall prepare disaster prevention, search and rescue plans in place, ensure the safety of dams and hydro-power projects, and ensure safety for downstream areas in the rainy, flooding and stormy season of 2018.

Regarding the construction investment, it is planned to further focus on construction and completion of the progress targets in the Quarter II/2018, in which some typical projects are to be conducted as follows: Completing granting the PAC TM1 of Vinh Tan 4 thermal power project and ensuring sufficient supply of coal for commercial power generation for the power units; Completing granting PAC for both power units of Thai Binh thermal power project. For the power transmission grid, efforts are made to focus on deploying urgent projects for power supply in dry seasons and the whole 2018, striving to complete energizing the 500kV Vinh Tan - Song May power transmission line; Striving to commence target projects in Quarter II of 2018: 3rd circuit of Vung Ang - Doc Soi - Pleiku 2 500kV transmission line, West Ha Noi - Thuong Tin 500kV transmission lines, Nho Quan - Phu Ly - Thuong Tin 500/220kV, Chon Thanh 500kV transformer station, power unit for 2 My Tho 500kV substations, etc. EVNSPC is directed to eradicate the situation of unregistered auxiliary connection in the Southern provinces, supply power for shrimp farming in the provinces of the Mekong River Delta, especially popularizing and multiplying the power saving the successfully-piloted model in Shrimp farming.

For some other tasks, EVN shall submit to the Ministry of Industry and Trade the Project a proposal on separation of power distribution and retailing among the Power Corporations; report to the Prime Minister on the establishment of some EVN dependent accounting Thermal Power Companies, EVN Repair Services Company and arrange and strengthen Power Source Project Management Boards under EVN; continue to coordinate with international Consultants to conduct the EVN credit rating; continue to carry out capitalization steps of EVNGENCO and divestment of EVN in joint-stock companies, etc.