Vietnam contains coal reserves estimated at 165 million short tons (Mmst), the majority of which is anthracite. Production has increased dramatically over the last decade, with Vietnam producing over 18 Mmst in 2003. As a result, Vietnam exported a record 7 Mmst of coal, primarily to Japan and China, in 2003. Although Vietnam has historically relied on hydropower for electricity, it has recently promoted the construction of coal-fired power plants. Vinocoal plans to build eight coal-fueled thermal power plants with a total capacity of 2,900 MW by 2010. Six are currently in various stages of planning and construction. In December 2004, the Vietnamese government approved Vinacoals proposal to invest in a 200-MW, coal-fired thermal power plant in the Son Dong district. The plant is scheduled to begin operation in 2007. Coal-fired power plants are expected to eventually account for 25% of Vietnams total electricity production. The Vietnamese government estimates that 10.2 Mmst of coal is needed per year to meet increasing domestic demand, projected at 20,000 MW by 2010. Vietnam continues to exploit new coal reserves within its borders. In March 2003, a significant coal bed was discovered in the Red River Delta region of northern Vietnam. Vinacoal plans to use the reserve for thermal power plants. In October 2004, Vinacoal entered talks with Chinas Fujian Province Coal Industry Corporation to jointly exploit the Bac Coc Sau mine in the Quang Ninh province.
Although Vietnams per capita electricity consumption is among the lowest in Asia, demand has risen in recent years, straining the countrys limited generating capacity. Rapid commercial sector growth, population migration to major cities, and elevated living standards have all contributed to a growing demand for electricity. In 2003, Vietnam had a total electric generating capacity of 8.8 gigawatts (GW) and generated 39.7 billion kilowatthours (kWh) of electricity, of which 52 percent was hydropower. Electricity demand in Vietnam is forecast to grow 15 percent per year until 2010. Vietnam currently buys power from China to prevent shortages in the North, and plans to begin purchasing from Laos in 2008. The majority of thermal electricity generation in Vietnam depends on coal-fired plants, though natural gas use is expanding. EVNs Pha Lai is the largest coal-fired power project in Vietnam, with the second of two 300-MW units coming into service in 2003. In order to meet increased demand, construction or expansion is planned for 32 power stations (7,547 MW) before 2010. The state power company, ElÉctricitÉ of Vietnam (EVN), plans to commission 16 hydropower plants by 2010 and increased capacity at the Uong Bi coal-fired plant to 400 MW in 2005. Vinacoal also has plans to construct eight additional coal-fired power plants.
Vietnam currently has five hydroelectric expansions underway. The countrys Son La project, which began construction in late 2005, is anticipated to have a generating capacity of 2,400 MW by 2012, will be the largest hydroelectric project in Vietnam when completed. In September 2004, construction began on the Ban Ve hydroelectric power plant, expected to begin operations in 2008. EVN began work on four additional hydroelectric projects in late 2004. The Dong Nai 3 and Dong Nai 4, both located in the Central Highlands region, are expected to be completed within four years and to provide approximately 520 MW of generating capacity. In December 2004, EVN began construction of the Se San 4 hydropower plant in the central highlands provinces of Gia Lai and Kon Tum. The plant is anticipated to have a capacity of 330 MW and to generate 1,390 million kWh per year. Vietnam also plans to build three additional plants in the region before 2010. In March 2004, EVN announced plans to spend $1.3 billion to build and refurbish power plants with a combined capacity of 1,510 MW. The projects include the combined cycle power plant Phu My 2.1, the hydroelectric facility Can Don, the Phu My 3 and Phu My 4 thermal plants, and Na Duong. Additional projects include the Song Ba Ha, Bac Binh, Se San 4, Dong Nai 3 and Dong Nai 4 hydrostations, the Quang Ninh, Ninh Binh extension, and the O Mon 600-MW thermal plant.
The development of natural gas-fired plants in the Phu My complex of the Ba Ria-Vung Tau province has helped to offset Vietnams heavy reliance on hydropower, which can be vulnerable to disruption when monsoon rainfall is unusually low. In March 2003, the 720-MW Phu My 3 power plant commenced operations. The $450 million plant, owned by a consortium led by UKs BP, was Vietnams first foreign-invested, build-operate-transfer (BOT) project. EVN has contracted to purchase the output under a 20-year power purchase agreement. Mitsubishi received an award in February 2006 for the construction of a 330-MW natural gas-fired power plant in the southern Mekong delta. The plant will come online in early 2009, running initially on fuel oil, and switching to natural gas when pipeline infrastructure is completed. More foreign companies are beginning to enter the growing Vietnamese power market in the form of Build-Operate-Transfer (BOT) projects. EVN and a consortium including Tokyo Electric Power (TEPCO), Sumitomo, and ElÉctricitÉ de France (EdF) began BOT construction of the Mekong Deltas 715-MW Phu My 2-2 in January 2003. The plant is fueled by gas from Nam Con Son Basin. EVN plans to develop a national electricity grid by 2020 by patching together several regional grids. The countrys distribution infrastructure is poorly maintained, but has benefited from recent improvements. A North-South power cable transmits electricity from Vietnams largest generator, the Hoa Binh hydropower plant in the North, to large population centers in the South, linking the country into one electricity grid and helping alleviate electricity shortages in Ho Chi Minh City. The $56 million project was funded by the World Bank. Vietnam is considering the construction of a 500-KV, 188-mile power line from Pleiku to Danang city at a cost of $130 million. The Vietnamese government has estimated that an additional 9,300 miles of high voltage transmission lines and 173,600 miles of medium and low voltage transmission lines will be necessary to accommodate new capacity by 2010. In September 2004, EVN announced plans to invest $330 million over five years to upgrade transmission lines surrounding Hanoi. Vietnam plans to complete its first nuclear power plant by 2020 as an alternate means on meeting demand. In December 2004, the Vietnamese Ministry of Science and Technology submitted a pre-feasibility study for the 2,000-MW nuclear plant to the National Assembly.