Hanoi (VNA) - The state-owned Vietnam Electricity (EVN) reported a profit of nearly 700 billion VND (30.29 million USD) from its power generation and business activities in 2018, according to the Ministry of Industry and Trade (MoIT).

At a press conference held in Hanoi on December 18, the ministry said EVN’s return on equity (ROE) reached 0.47 percent.

EVN reports nearly 700 billion VND in profit in 2018 hinh anh 1Deputy Minister of Industry and Trade Hoang Quoc Vuong chairs the press conference on EVN’s cost of power generation in 2018. (Photo: VietnamPlus)

Statistics showed that total power sales hit 332.98 trillion VND in 2018, a year-on-year surge of 14.84 percent, while average electricity retail prices were estimated at over 1,731 VND/kWh, up 4.3 percent from the previous year.

The total cost of power production and trading was more than 255,679 trillion VND, or 1,329.17 VND per kWh.

Regarding power supplies, General Director of the MoIT’s Electricity Regulatory of Vietnam Nguyen Anh Tuan said that total power generation was projected at 239.73 billion kWh in 2019, rising 8.93 percent compared to the previous year.

However, he said unfavourable weather conditions coupled with slow progress on the construction of several power facilities will affect power supplies in 2020.

EVN reports nearly 700 billion VND in profit in 2018 hinh anh 2General Director of the MoIT’s Electricity Regulatory of Vietnam Nguyen Anh Tuan speaks at the press conference (Photo: VietnamPlus)

Total power output from hydropower plants in the first months of this year are forecast to be 4.55 billion kWh below average. Power supplies, especially during the dry season, will likely be affected because hydropower plants will have to supply water for agricultural production, domestic use and salinity reduction.

In January and February, hydropower reservoirs along the Red River will release more than 4 billion cu.m of water for the winter-spring harvest in the northern delta.

Renewable energy will supply about 10.8 billion kWh, equivalent to 4.16 percent, of power demand.

Nearly 2,000MW of wind and solar farms have yet to go into operation.

Due to the expected shortage of hydroelectricity, about 3.1 billion kWh of diesel-generated power will be used.

“Diesel-generated power will be used if water levels in reservoirs fall, overloading the power transmission network, or in the case of prolonged incidents at coal power plants and wind turbine farms,” Tuan said.

Deputy Minister of Industry and Trade Hoang Quoc Vuong said only four out of 19 Build-Operate-Transfer electricity projects have been put into operation, and delays had affected power supply to the whole country.

The ministry has submitted a series of solutions to the Government to accelerate progress at these projects and asked EVN, the Vietnam National Coal-Mineral Industries Holding Corporation Limited and relevant agencies to ensure coal, oil and gas supplies.

The MoIT has also asked EVN and other units to accelerate investment and construction at key power transmission projects including the Vung Ang-Doc Soi-Pleiku 2 power line.

To cope with prolonged droughts, the MoIT will work with the ministries of Natural Resources and Environment, and Agriculture and Rural Development to save water, invest in irrigation systems and store water to lower dependence on hydropower reservoirs.

Vietnam's National Power Transmission Corporation (EVNNPT) launched 36 power transmission projects with a total investment of 19.74 trillion VND (850 million USD) in 2019.

This marked the highest investment in the past three years and fulfilled 101.2 percent of the work assigned by EVN.

Of the 36 projects launched, there were four 500kV power transmission projects and 32 220kV power transmission projects, said Nguyen Tuan Tung, General Director of EVNNPT, a subsidiary of EVN.

Among the projects were the 500kV Long Thanh substation, the 500kV Nho Quan Power substation, the 220kV Ninh Phuoc substation, the 220kV Thap Cham substation and the 220kV Lao Bao substation.

In 2019, EVNNPT also put into operation 43 projects, including 11 500kV projects and 32 220kV projects, ensuring power supplies as required by the corporation and EVN.

According to EVN, this is an encouraging result as construction investment continues to face many difficulties, including prolonged procedures for investment preparations and complicated site clearance compensation settlements.

Last year, EVNNPT approved 63 feasibility studies and 42 technical designs, selected contractors for 966 bidding packages worth 14.5 trillion VND, and selected online contractors for 461 bidding packages./.