South African government seeks a Vietnamese remedy to its electricity shortage

Photo: Ministry of Industry and Trade

Dang Hoang An, Deputy Minister of Industry and Trade, verified with VIR on June 23 that the primary focus of the discussion was to exchange expertise in terms of power administration, regulation, and development.

On the afternoon of June 22, South Africa's Minister of the Presidency for Electricity Kgosientsho Ramokgopa said that the country's power outages have been frequent and severe since the end of 2022. They continue to be complicated, occurring for approximately 10 hours per day.

President of South Africa Cyril Ramaphosa had to proclaim a state of national catastrophe in February due to power shortages.

In response to the present power scarcity, the South African Presidency for Electricity is concentrating on three primary objectives. The first is to consolidate and enhance the efficacy of existing energy sources. The second focus is to engage in the creation of renewable energy sources and examine their integration into the existing power grid. Finally, the aim is to boost investment in the renovation of the power grid and transmission systems.

Since the end of May, when heat caused the demand for electricity to skyrocket, Vietnam has essentially eliminated the electricity shortage in the North. The main issue was the mobilisation of hydroelectricity, one of the nation's two primary sources, which fell significantly. At the same time, some thermal power facilities experienced difficulties.

It is essential to closely monitor and respond quickly to transmission grid issues, and have a clear plan in the event of a power shortage, An noted.

The emphasis on the growth of renewable energy sources not only assures the nation's energy security, but also contributes to the control of greenhouse gas emissions. In its Power Development Plan VIII, Vietnam prioritises the development of renewable energy sources for electricity generation. By 2030, they will account for between 30.9 per cent and 39.2 per cent.

The appropriate application of the feed-in tariff (FiT) policy will create better conditions for investors to lower their production costs, according to the Deputy Minister of Industry and Trade.

However, An also cautioned that the application of the FiT pricing mechanism must be calculated with care. If applied uniformly to all projects, it could result in enormous expenditures, system congestion, impeded operations, and reduced efficiency.

South Africa is presently Vietnam's main trading partner and largest export market in Africa, according to data from the Ministry of Industry and Trade. In 2022, the total value of imports and exports exceeded nearly $1.28 billion, an increase of 0.4 per cent from 2021. Vietnam's exports reached $879 million and imports hit almost $400 million.

Electricity prices to be revised up following holiday The Ministry of Industry and Trade has allowed the Vietnam Electricity (EVN) to revise up electricity prices by a maximum of 3 per cent following the April 30 - May 1 holiday.

Prime Minister seeks electricity supply guarantees Prime Minister Pham Minh Chinh has requested that the Ministry of Industry and Trade (MoIT) conduct a thorough examination and assessment of the electricity supply situation by June 10. The PM believes it is particularly necessary to evaluate emerging factors to improve the efficacy and productivity of Electricity of Vietnam (EVN) and to devise proactive and expeditious response scenarios.

Power supply basically meets demand from June 23: Authority The Electricity Vietnam Group (EVN) on June 22 announced that the power supply will basically meet demand in the northern region from June 23 thanks to increasing water level at hydropower plants’ reservoirs.