Jun 22, 2012

Vietnam - Vietnam Needs $10 Billion for Developing Electricity Transmission Network: Expert

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Luu Viet Tien, head of Investment Department of the National Power Transmission Corporation said total investment capital needed for developing electricity transmission network by 2020 is $10 billion.

Electricity transmission projects  can access only $4 billion funded by ODA and commercial sources and the rest $6 billion has not been arranged, Tien said at a meeting about modernizing electricity transmission network held in Hanoi June 20.

Tien also said average price of electricity transmission in Vietnam was 6.58% in 2008-2012, much lower than the average price in the world and, citing electricity transmission prices of 76.1 dong and 83.3 dong respectively in 2011, 2012.

He proposed the government to raise electricity transmission prices to 10-12% of electricity prices from over 6% in 2011-2012 as “the current electricity transmission prices are not enough to meet investment in the future”, he stressed.

It is estimated that electricity demand will rose 14.1% in 2011-2015 therefore Vietnam needs to develop electricity  capacity of 43,000MW in 2015, meanwhile, electricity transmission capacity for 220kV-500kV of the National Power Transmission Corporation cannot catch up the power generation development pace.

Tien predicted the demand for power load will be up 15%.

It is estimated that power transmission network needs $760 million new investment each year and in 2013-2016 National Power Transmission Corporation plans to invest 36 small projects from the North to the South with a total investment of $700 million.

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