The operator of Nhon Trach 2 power plant is in negotiations with Vietnam Electricity Group (EVN) to raise its power selling price, which currently stands at VND1,200 a kWh, said a top executive.
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| A technician is seen at Nhon Trach 2 power plant located in Dong Nai province’s Nhon Trach district. The power plant has produced 8.7 billion kWh after nearly two years of operation |
The operator of Nhon Trach 2 power plant is in negotiations with Vietnam Electricity Group (EVN) to raise its power selling price, which currently stands at VND1,200 a kWh, said a top executive.
Hoang Xuan Quoc, general director of PetroVietnam Power Nhon Trach 2 Joint Stock Company, said that since joining the competitive power market, EVN has bought power of the plant at a price lower than VND1,400 per kWh offered to other power plants.
Nhon Trach 2 plant worth US$706 million has a capacity of 750 MW and each year uses around 800 million cubic meters of gas supplied from Nam Con Son gas field. The plant produced 4.6 billion kWh and earned revenues of VND5.45 trillion from selling power last year.
According to Quoc, many other gas-fired power plants are selling power at low prices to EVN, sometimes at as low as a few Vietnam dong during ‘off hours’. The firm is negotiating with EVN to increase the price to cover production costs.
Currently, the power ceiling price is set by EVN, and it is unlikely that the price will exceed the ceiling price after negotiation. As the sole power buyer, EVN wants to buy power at low prices to earn more profits.
Therefore, the situation will be different if there are three to four power buyers, Quoc noted.
Regarding the gas supply for gas-fired power plants in southern Vietnam, there will be a new gas supply source which is Hai Thach-Moc Tinh field providing an estimated volume of some two billion cubic meters per year, enough for three plants like Nhon Trach 2.
(Source: SGT)
