Pha Lai Thermal Power Plant. Pha Lai Thermal Power JSC, which runs the plant, made a net profit of 155 billion VND in third quarter of 2022. (Photo: baodautu.vn)According to VietinBank Securities (VBS), electricity demand inVietnam is projected to grow by 8.5% annually in the next five years,mostly coming from manufacturing and construction sectors.
The fast-paced demand is forecast to exceed domestic outputby 13.3 billion kWh in 2023 and 27.7 billion in 2025, leaving the country withno choice but to import liquefied natural gas and generate more thermal powerto pick up the slack.
VBS did not expect renewable energy to contribute much tothe output between 2023 and 2025 as there are still a number of obstaclesin the way of green projects. However, the transition to renewableenergy has been well underway and this type of energy is expected totake the front seat after 2025.
Vietnam Electricity was concerned that the backup capacity ratewould drop steadily after 2023, leading to electricity shortages in the shortterm.
Specifically, the backup capacity rate is projected to fall to 18%in 2025 with electricity output falling short of demand by 27.7 billionkWh. In the North, the rate is likely to stay as low as 10% during the period.
Mirae Asset said the country has planned topurchase electricity from Laos to fill the supply-demand gap.
To this end, the Nam Mo-Tuong Duong Electricity Transmission Linehas been built to transmit electricity from Nam Mo Hydropower Plant to Vietnam.The line has reached 91% of its completion and is slated to operate inNovember.
On the bright side, electricity producers raked in huge profits inQ3/2022 on the back of the mounting power demand.
Mien Trung Power Investment & Development JSC (HNX: SEB) maderevenue of 66 billion VND, up 50% year-by-year. Its after-tax profit hit 31.3billion VND, soaring over one-hundred-fold against last year.
Nuoc Trong Hydropower JSC (HNX: NTH) followed suit with anafter-tax profit of 10.4 billion VND, over twenty times higher than the figurein 2021. A Vuong Hydropower JSC was riding high with earnings of 180billion VND, nearly fourfold more profitable than that of the previous year.
Vinh Son-Song Hinh Hydropower JSC (HOSE: VSH) earned 220 billionVND, in contrast to Q3/2021 when it was running at a loss of 42 billionVND. Pha Lai Thermal Power JSC (HOSE: PPC) posted a net profit of 155billion VND, against a loss of 35 billion VND in Q3 last year.
Other producers that made big money in Q3 amid rising power demandinclude Hai Phong Thermal Power JSC with an after-tax profit of 41 billion VND,Quang Ninh Thermal Power JSC with 147 billion VND, Ba Ria Thermal Power JSCwith 86.5 billion VND, and Thac Ba Hydropower JSC (HOSE: TBC) with 105billion VND.
ACB Securities said energy security is a top priority for theVietnamese Government since the energy sector is the country's engine ofgrowth.
The company also said the sector's outlook is bright in the shortterm thanks to firms' post-pandemic recovery./.
VNA
