Many thermal power projects in Vietnam have had to wait up to 10 years to obtain a license for construction, while it takes only three years to finalize the projects.

Thang Long thermal power plant 

Speaking at a conference for the industry and trade sector’s plans for 2019 on January 17, Le Thanh Lam, a representative of Hanoi General Export Corporation, or Geleximco, said that the Thang Long thermal power plant located in Quang Ninh Province is the country’s largest thermopower project operated by a private firm, with a total capacity of 600 megawatts (MW).

“The project needed three years for completion, but it took us 10 years to get the construction license,” Lam remarked.

Lam proposed simplifying license issuance and administrative procedures to attract private investors into the power sector.

In fact, the country will probably be at risk of an energy shortage in the years to come if hydropower runs out and alternative resources fail to be exploited effectively.

It is calculated that the total capacity of the national power network should be 60,000MW by 2025. However, the total national output has reached only 47,000MW so far. The country will need an additional 13,000MW within the coming six years, but the issuance of licenses is being carried out slowly, hindering the construction of thermal power projects.

The Thang Long thermal power plant was put into commercial service in May 2018, exceeding the investment progress of two months and saving over VND500 billion of the total capital of VND19 trillion. During its 10-year preparation, the project stalled due to the lack of capital and before being financed by a Chinese firm.

The long process of prepping for the construction of thermal power plants has caused investors to suffer heavy losses. Apart from the complicated procedures, mobilizing capital, selecting technology and negotiating contracts with Vietnam Electricity Group are also key reasons for the prolonged execution of these projects.

In 2019, electricity consumption is estimated to rise by 10.4% against 2018.

SGGP