A rockfill dam more than 60 m high is under construction for the Ham Thuan/Da Mi hydro project, on the La Nga, while a 67 m-high dam is under construction for the 720 MW Yali hydro project.

Energy and power sectors

Vietnam has abundant resources of hydropower, coal, oil and gas. Much of the hydro potential is the central and northern region, while the oil resources are mainly in the south.

The main sources of energy of energy in 1994 were: oil (61.8 per cent); coal 925.5 per cnet); and, electricity (12.7 per cent). Biomass plays a very important role in rural areas, which has resulted in severe deforestation.

The main sources of electricity production in 1996 were: hydropower (70 per cent), thermal plants (coal. Oil and gas)(13.5 per cent), gas (8.8 per cent ). Oil (5.9 per cent )and diesel (1.8 per cent). Total electricity consumption was 12 300 Gwh.

Electricity of Viet Nam (EVVn) is in charge of energy resources , and the construction and operation of power plants. It distributes power in the north. South and central regions through its five regional power companies: power Companies Nos. 1, 2 and 3 respectively, the Hanoi Power Company and Ho chi Mimh Power Company. The Planning and design of power generation Projects is carried out by Power Investigation and Design Companies 1 and 2. Which are also under EVN. There is no private ownership of powerplants.

As a result of nearly 30 years of war. The organization and management of the power sector need to be improved.

Vietnam began a major power sector reform in January 1995 aimed at developing a system that would operate more efficiently, and to allow for integrated strategic planning. As one of the steps the Government set up EVN in January 195, with a holding company comprising 34 business units engaged in generation, transmission, and distribution.

Electricity demand is increasing very rapidly, with increases exceeding 20 per cent/year in recent years. Chronic and severe power shortages in the south have now been eased through the interconnection of the northern/central and southern grids.

About 51 per cent of households have an electricity supply. The per capita electricity consumption is 149 kWh/person/year total and 53.8 kWh/person/year for domestic consumption (1995). There is thus vast potential for increased power demand in the future, with per capita electricity consumption expected to double in the next decade, and with predicted annual growth rates of about 14 per cent up to 2000, reducing to around 11.5 per cent between 2001 and 2005. About 600 to 700 MW of new generation capacity will thus need to be commissioned each year up to 2005.

EVN expected total power output in 1996 to be 16.4 TWh. 35 per cent more than in 1994, but still 1 TWh below the demand. The company aims to almost double its production to 26 to 29 TWh/year by 2000. Demand is expected to continue to increase considerably, possibly reaching 60 TWh/year by 2006.

Private hydropower and coal-fired power projects are to be implemented, particularly in the north of the country. The Ministry of Industry recently invited private firms to submit proposals for BOT projects totalling 1.6 GW, and a number of memoranda of understanding have been signed. The Ministry also expects to offer one coal-fired project, one hydro project and four gas-fired projects, with a total capacity of about 2000 MW, to the private sector.

It is estimated that Vietnam requires an investment of US$ 23.5 billion between 1995 and 2010 for power sector development, two-thirds of which will be spent on power generation projects. It is expected that half of the additional capacity will come from BOT projects. Therefore , the Government is working hard to attract private and foreign participation.

Hydropower development

The technically feasible hydro potential is estimated to be 80 to 100 TWh/year, representing about 17 700 MW. Of this, 51 TWh/year of potential is in the north, 19 TWh/year in the central regions and 10.5 TWh/year in the south. A ptreliminary estimate of the economic hydro potential is about 18 000 MW (80 417 GWh/year).

The hydropower potential is mainly concentrated on three rivers: 6258 MW on the Da river in the north. 1485 MW on the Sesan river in central Vietnam, and 2500 MW on the Dongmai river in the south.

Vietnam has about 4600 MW of installed capacity at all of its plants, of which 2883.5 MW is hydro capacity. About two-thirds of the powerplant capacity is in the north, despite half of the power demand (1280 MW of 2600 MW)begin in the south. Hydro plants generated 12 343 GWh in 1995 (83 per cent) of power production and 11 900 GWh in 1996 (70 per cent).

There is 1262 MW of hydro capacity under construction, the four largest plants all being scheduled for completion in 1999. Yali (720 MW); song Hinh (70 MW); and Ham thuan and Da Mi (300+172 MW). However, the Yali project could begin service by the second half of 1998. Ham Thuan-Da Mi will be the largest hydro plant in the south of the country. A transmission lines is to be built connecting Yali to Thailand, via Laos.

The feasibility study and preparation of tender documentation for Dai Ninh (300 MW), in binh thuan province in the south, and now being completied by Sogreah of France and PACIFIC Rim Power of Canada. Funding has not yeat been finalized.

Other large hydro projects planned for implementation up to 2010 include: Son La (2400 to 3600 MW); Thuong Kon Tum (260 MW); Ban Mai (350 MW); Upper Kon tum (260 MW); Dai Thi (250 MW); An Khe (116 MW); Se San (366 MW); and, Can Don-huoi Quang 9650 MW).

Small hydro

Some 400 small hydro stations (1 to 10 MW)have been constructed, with a total capacity of 70 MW, representing only about 3 per cent of the potential. However, more than a third of these plants (20 MW) require renovation. For 100 kW to 1 MW plants (500 sites), 10 MW of a potential 200 MW (5 per cent) has been developed. There are also estimated to be 2500 possible sites for micro hydro plants (up to 100 kW).

The Government has a policy of promoting micro hydro, to improve living standards in mountainous areas. At present, the priorities are to import low cost micro hydro equipment, train technical personnel and transfer technology to Vietnam. Intention co-operation is thus being strongly encouraged. Foreign funding of mini hydro schemes and public investment is to increase, and the Prime Minister has expressed an intention to construct up to 200 schemes with capacities of about 1 MW each. Investment would come from international loans and with joint venture agreements for equipment manufacture.

Future outlook

The energy sector of Vietnam urgently needs to be developed. However, the country still faces a number of problems, one which is lack of adequate capital for investment.

Hydropower is a major priority for future years, as well as completion of the grid interconnection program allowing for development of large hydro sites such as the major Son La project on the Da river upstream of Hoa Binh, in the north.

The masterplan for development of hydro projects is concentrated mainly on the Da river in the north, the Sesan river in central vietnam and the Dong Nai river in the south, a total of about 4000 MW capacity.