Axe to fall on small hydropower projects

Projects which hurt the environment face a black future

Minister of Industry and Trade Vu Huy Hoang last week said the ministry would continue working with local relevant agencies to revise Vietnam’s hydroelectric power planning.

Under the existing Vietnam’s regulations, a hydroelectric project of less than 30 megawatts and using 10 hectares is classified as  small-scaled. Vietnam boasts potential for about 30,000MW power generated by hydroelectric plants.

“Projects not remarkably contributing to the socio-economic development of localities where they are located, threatening the environment or flooding, will be stopped,” Hoang said.

The Ministry of Industry and Trade (MoIT) reported that it had erased projects to build 38 small hydroelectric plants in nine central provinces for these reasons.

“Given rising abnormal rains and flooding, we have to show a serious attitude towards hydroelectricity development. Only projects that can meet the government’s requirements and will be retained,” Hoang said.

He said many projects had used natural forests, which irritated the public as it damaged the environment and reduced Vietnam’s forest areas.

According to the MoIT, many local investors are rushing to investing into developing hydroelectric projects of between 5-30MW, because it is easy to obtain bank loans for these projects to make quick profits.

The number of approved small-scaled hydroelectric projects in Vietnam has risen from 340 in 2005 to over 880, with total capacity of over 5,880MW. Many of them are located in Lao Cai, Son La, Gia Lai and Kon Tum provinces.

For example, Gia Lai has 17 hydroelectric projects with total capacity of 208.15MW, five of which are owned by Hoang Anh Gia Lai Group. The northern Lao Cai province has 110 projects and the Central Highland provinces have about 400 ones.

The MoIT said many plants only operated half of their capacity due to lack of water. However, Hoang reported that Vietnam’s hydroelectric project planning included 230 small-scaled hydroelectric projects nationwide, with total capacity of 1,520MW. But only 90 projects have been implemented, with total capacity of 500MW.

“Projects of less than 5-6MW often find it difficult to ensure their desired investment efficiency,” said Do Duc Quan, vice head of the MoIT’s Energy Department.

Recently, a series of 2-5MW projects such as Khe Cach in central Binh Dinh province and Song Trang in central Khanh Hoa province were removed from the hydroelectric planning.