Luong Van DaiDirector of the Department for Project Appaisal

Vietnam Electricity Group (EVN)

(Presentation at the “HYDRO 2007” in Grenada (Spain))

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Vietnam

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1. Outlines of Power Sector in Vietnam2. Power Demand and Power Generation Development

Plan3. Hydropower Potential in Viet Nam4. Power Plants in Operation and Under Construction

commissioned in the period of 2010-20155. Orientation of Power Grid Interconnection between

Vietnam and Neighbouring Countries6. Orientation of Capital Mobilization Methods

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Electricity of Vietnam (EVN)- a State-owned enterprise, founded in 1994;- in June of 2006: became Vietnam Electricity, one

of the top ten of the biggest enterprises in Vietnam

- Responsibility: - Power supply for the national economic

development

- Functions:- Construction investment, - Production and trading of power energy, - Telecommunications, financing, banking

a. Functions and Responsibilities:

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Operation Model: EVN is operating in the form of parent and subsidiary, in which parent company not only directly implement power production and trading but also financing subsidiary and joint-venture companies, and new fields of business.

Parent Company – EVN: in charge of strategic decision making and critical orientations of EVN on financing development of power projects, technologies, sciences and others, and planning long-term business and production and investment of EVN and subsidiary companies, and financing subsidiary companies and other enterprises, and organizing administrative mechanism and developing human resources of EVN and its subsidiary companies.

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b. Organizing Structure of EVNParent Company – EVN:

Including: Administration of Vietnam Electricity, National Load Dispatching Center, Power and Civil Project Management Boards,

Electricity Information Center, Large Power Plants.

Subsidiary CompaniesEVN holds 100% of charter capital of these companies which operate in the large-scaled fields of power production, transmission, trade, telecommunication and finance-EVN holds over 50% of charter capital of these companies which operate in medium-scaled fields of power production and trade, information technology, mechanics, consultation and others.

Joint-venture Companies

Companies of EVN hold less 50% of charter capital of joint-venture ones which operate in power production, banking, real estate and others.

Administrative Units

Including:Institute of Energy, University of Electricity and threeElectricity Colleges

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19 Thermal andHydropower

Plants

19 Thermal andHydropower

Plants 11 PowerCompanies 11 Power

Companies

15 ProjectManagement

Boards of Generation, Networks,

Civil Construction

15 ProjectManagement

Boards of Generation, Networks,

Civil Construction

4 ElectricityMechanics

Companies

4 ElectricityMechanics

Companies

4 PowerTransmissionCompanies

4 PowerTransmissionCompanies

4 PowerEngineeringConsultingCompanies

4 PowerEngineeringConsultingCompanies

1 ElectricityTelecommunication

Company

1 ElectricityTelecommunication

Company

1 Center for Electricity

Information

1 Center for Electricity

Information

1 InformationTechnology

Center

1 InformationTechnology

Center

NationalLoad

DispatchingCenter

NationalLoad

DispatchingCenter

1 Instituteof Energy

1 Instituteof Energy

1 Universityof Electricity,3 College of Electricity

1 Universityof Electricity,3 College of Electricity

EVN84,000 persons

EVN84,000 persons

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c. Existing Power Generation and Transmission NetworksBy late 2006, Total Capacity of all existing Power Plants in Vietnam is 11717MW,

By generation

38%

18%

40%

4% Hydropower

Coal-firedThermal PowerGas ThermalPowerDiezen, andothers

Transmission Networks:- 500KV: 2469km- 220KV: 4795km- 66KV-110KV: 9819km

9278, 79%

2439, 21%

EVN

externalEVN

Rate of Power Supply- 64/64, provinces- 100%, districts- 96%, communes- 91.5%, household

Power energy produced in 2006: 60.6 bil. kwh, Commercial electricity: 51,5 bil. kwh.Average: 600kwh/capita/year www.vncold.vn

23001200550Eo commoercial(kwh/capita/year)

22310745,6Ecommercial (Billion kwh)

25712453,5EProduced (Billion kwh)

60000-70000

25857-27000

11286Nlm (MW)

201520102005Year

Growth Rate 18-20%

Period 2005-2010, Annual Average Increase, upper 3000MW

Period 2010-2015, Annual Average Increase, some of 7000MWwww.vncold.vn

17%22%28-33%38-40%36,5%

Percentage of Hydropower in

the Whole Power System

305482414819874102114198Hydropower

181.000112.00060.000-70.000

25857-2700011286Total Nlm (MW)

20252020201520102005Year

Percentage of Hydropower in the Whole Power System

* Above-mentioned Capacity of Hydropower is included Pumped Storage Power Plants (4800MW to the year 2025) + power imported from Lao and Cambodia.

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Features of Geography and Meteo-hydrology

Gross area of Vietnam is S = 331.000km2, in which 4/5 of this is mountainous areas and highlands.

Vietnam is S-shaped, length of 1630km prolonging from the North to South. Largest width of the North and South is 600km and 370km, respectively, while it is narrowest in the Central part of Vietnam, Quang Binh province (Dong Hoi provincial town), as of 50km.

Vietnam is located in the tropical monsoon area, hot and humid, with large amount of rainfall. Average Annual Rainfall is some of 2,000 mm, in which highest and lowest one is 4,000-5,000mm and 1,000mm, respectively. In general, rainy season lasts from 3 - 5 months but unevenly distributed in term of spacial aspect.

River network of Vietnam is densely presented in which 2,400 rivers are longer than 10km. Almost all rivers in Vietnam flow into the East Sea.

Gross Run-off Volume is 870 bil. m3/year, presented as Annual Average Discharge as of 37,500 m3/s.

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- Theoretical Potential: about 300 bil. kWh (only accounting for rivers with length of over 10km). - Technical Potential: about 123 bil. kWh, referred to as Installed Capacity of 31,000 MW.- Technical-Economic Potential is identified as some of 75-80 bil. kWh, equivalent to capacity as 18,000-20,000MW.

By the year 2006, Total Capacity of Existing Hydropower Plants in Vietnam is 4460 MW which is considered as 18 bil. kWh of Average Annual Energy Production. It has been, therefore, over 20% of technical-economic potential exploited.

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Power Energy Potential of Medium and Small Scaled Hydropower Projects lower 30MW.Total Technical-Economic Potential of Hydropower Projects ≤ 30MW, some of 300 projects, is in the range of 2,500-3,000 MW, referred to as 10 bil. kWh of Average Annual Energy Production.

Power Energy Potential of Pumped Storage Power Projects: 10 of Pumped Storage Power Projects, total capacity of 10,000MW, has been identified viable in term of Technical-Economic aspect (i.e in Sonlaprovince: 7 projects, Hoa Bình: 1, Ninh Thuan: 1 and in Binh Thuan province: 1 project). Pre-feasibility Report of 2 projects, 1 in Sonla and the other in NinhThuan, has been prepared.

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b- EVN has been conducting construction of projects > 30MW , which total capacity is 6,500MW, to commission in 2010

At the present, 19 projects invested by EVN are under construction.

In which Sonla hydropower plant, 2,400 MW, is the biggest one in the South East Asian. The first and second units are planned to commission by late 2010 and project completion in late 2012.

12

3

4

5

9

86

7

HuoiQuang

Son La

Ban Chat

Ban VeSong Tranh 2

A Vuong

Se San 4Plei Krong

Dong Nai 4

Dong Nai 3

TuyenQuang

Dai Ninh

Srepok3

BuonKuop

BuonTuaSah

Song Ba HaKanak Ankhe

Quang Tri

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320

220

520

2400

342

Installed Capacity

(MW)

Nghe An

Lai Chau

Son La

Son La

TuyenQuang

Province

5

4

3

2

1

136RDFBan Ve

104RCCBan Chat

130CGDHuoiQuang

138RCCSon La

93RDFTuyenQuang

Dam Height

(m)Dam typePower Plant

(RCC: Roller-Compacted Concrete; RDF: Rockfill Dam with Facing; ED: Earth Dam; RDC: Rockfill Dam with Center Core Wall, CGD: Concrete Gravity Dam)

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330

220

210

190

64

Capacity(MW)

Gia Lai

Phu Yen

QuangNam

QuangNam

Quang Tri

Province

10

9

8

7

6

74RCCSe San 4

60EDSongBa Ha

82RCCA Vuong

95RCCSong Tranh 2

75RDFQuangTri

Dam Height

(m)Dam typePower Plant

300

270

240

110

173

Capacity(MW)

Lam Dong

Lam Dong

Lam Dong

Kon Tum

Gia Lai

Province

15

14

13

12

11

50RDCDai Ninh

128RCCDong Nai 4

100RCCDong Nai 3

71RCCPkeikrong

64RDFAn Khe-Kanak

Dam Height

(m)Dam typePower Plant

(RCC: Roller-Compacted Concrete; RDF: Rockfill Dam with Facing)

220

280

86

33

Capacity(MW)

Daklak

Daklak

Daklak

Binh Thuan

Province

19

18

17

16

60RDCSrepok3

30EDBuonKuop

85RDCBuonTuaSarh

25EDBacBinh

Dam Height

(m)Dam typePower Plant

(RCC: Roller-Compacted Concrete; RDF: Rockfill Dam with Facing; ED: Earth Dam; RDC: Rockfill Dam with Center Core Wall)

100QuangNam

Song Bung 23

Installed Capacity

(MW)ProvinceProjectNo.

7

6

5

4

2

1

60Gia laiSe San 4a

90Nghe AnKhe Bo

60QuangNam

Song Bung 5

145QuangNam

Song Bung 4

250ThanhHoa

Trung Son

1200Lai ChauLai Chau

c. Pre-investment of planned projects (i.e total capacity of approximately 2,000MW) is conducting by EVN to commission in

2015.1

2

3

4

5

9

86

7

6

2

3

7

4

5

1

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d. Pumped Storage Power Plants, EVN: These planned projects, total capacity of 4,800MW, will be commissioned in the period 2018-2022.

e- Hydropower Plants, N >30MW: these will be invested by local units in the form of BOT and IPP, and planned commissioning as follows:

- Period 2006 – 2010 : 920MW- Period 2011 – 2015 : 3100MW- Period 2016 – 2020 : 1000MW

g- Small-scaled Hydropower Plants:

1,000 MW from small-scaled hydropower projects (i.e projects <30MW) will be generated in the period 2006- 2010, about 500 MW in 2011-2015 and 1,000 MW in 2016-2020.

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- Interconnecting with Lao:Immediate projection is that hydropower plants of Lao such as Nam Mo (100 MW) will be interconnected with Vietnam via transmission line 220 KV running through A Vuong HPP to Da Nang city.

In Power Development Plan No. 6, an amount of 1,000MW will be imported from Lao up to the year 2010 and an increase of 2,000MW beyond 2010 via 2 directions as follows:+ The first direction: from Central of Lao( Nam Thueon2, 688MW) to Ha Tinh province.+ The second direction: from the South of Lao( Ban Sok), Sekaman 1, Se Kong 4, 5 and Nam Kong, total capacity of up to 1,600MW to Pleiku (Gia Lai).Due to the delay of proposed development plans of hydropower projects in Lao, construction of planned transmission line 500kV will be backward 2010.

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Interconnecting with Cambodia

+ In the period 2008 – 2010: Vietnam will provide Cambodia with 150-200MW via transmission line 220KV from Cuu Long River Delta (i.e proposed from transformer station 220KV, Thot Not) running through Chau Doc and Ta Keo to Phnom Penh.

+ In the period 2010 – 2015: proposed construction of hydropower projects as Lower Se San 2 (430MW) and Se San 1 & Se San 5 (100MW) will be implemented and transmitted to the North of Ho Chi Minh city and transformer station Pleiku, respectively.

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Interconnecting with Van Nam province of China

+ It is planned that 250 -300 MW will be imported via transmission line 220KV Lao Cai – Yen Bai -Viet Tri in 2006.

+ In the middle of 2007, 200MW will be imported to Ha Giang - Thai Nguyen.

+ Possibility of electricity importation 1,500MW in the period of 2006-2018 via transmission line 500KV is considering to connect transformer station 500/220KV Hong He (Hong Ha – Van Nam province) with the one of Soc Son.

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Average Investment Capital for itself EVN in the period of 2006- 2015 is USD 4 billion per year, orientation of capital mobilization methods are as follows:

- Privatization of Power Plants and Power Companies.

- Domestic Credit and Bond issue.

- International Credit and Diversification of Different Financing Sources.

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