Challenges in coal supply for thermal power production

As thermal power accounts for the largest proportion of Vietnam’s energy production, the country is facing challenges to ensure sufficient supply of coal for thermal power plants in the coming years.
Challenges in coal supply for thermal power production ảnh 1Vinh Tan thermal power centre (Source: VNA)
Hanoi (VNA) – As thermal power accounts forthe largest proportion of Vietnam’s energy production, the country is facingchallenges to ensure sufficient supply of coal for thermal power plants in thecoming years.

According to President of the Vietnam Association ofThermal Science and Technology Truong Duy Nghia, coal-fired thermal power hasdominated the country’s energy market, particularly in southern provinces. Itis largely due to the fact that hydropower, also popular in Vietnam, requiresspaces for reservoirs and large evacuation for facility construction in spiteof its low prices, environmental friendliness and short building time.Meanwhile, most of natural resources for the development of hydropower plantshave been almost used up, he noted.

Renewable energies like wind power, solar power orbiomass are environmentally friendly but generation of these types ofelectricity has remained low, equivalent to only one fifth or one sixth of thethermal power production while they heavily depend on natural resources andweather conditions, making their prices relatively high.

Gas-fired thermal power faces similar issues in terms ofcost as the operation and maintenance costs for a facility are very expensive,almost doubling those of the coal-fired thermal power while gas supply islimited.

According to the Ministry of Industry and Trade (MoIT),by 2020, Vietnam is expected to produce about 26,000 MW of coal-fired thermalpower, accounting for 49.3 percent of the total electricity generation andconsuming about 63 million tonnes of coal. By 2030, the production ofcoal-fired thermal electricity will increase to 55,300 MW of power,representing 53.2 percent of the total generation and consuming 129 milliontonnes of coal.

It was estimated that to provide sufficient supply of fuelfor coal-fired power plants, Vietnam will have to import about 90 million tonnesof coal a year after 2030, which puts the country under great pressure.

Since 2016, Vietnam has started importing coal which wasinput for Duyen Hai 3 Thermal Power Plant. In 2017, imports of coal totalled4.5 million tonnes and it is likely to rise to about 24 million tonnes by 2020.

Le Van Luc, deputy head of the MoIT’s Electricity andRenewable Energy Authority, said if demand for coal keeps increasing, theministry will propose the government to adopt a special mechanism for thermalpower producers to sign long-term contracts for coal imports and allow them tohold ownership of coal mines abroad to stabilise the coal supply forelectricity production.

He further noted that the ministry is drafting a plan fornational power development for 2020 – 2030 with a post-2030 vision, which willalso take the supply of coal for power generation into consideration. –VNA 
VNA

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