Hai Phong thermal power heats up

(VEN) – Hai Phong Thermal Power Plant 1 officially became operational in late 2011. To now it has supplied over 8.7 billion KWh to the national grid. This, together with upcoming construction of twin-turbine Hai Phong Thermal Power Plant 2, marks significant strides for Hai Phong Thermal Power JSC in helping power the country.hai-phong-thermal-power-heats-up-1216223-nhamayInitial achievements

Hai Phong Thermal Power Plant 1 was built amid difficulties in the domestic economy. It took a major effort from both the investor and contractor to put the plant into operation.

Thus far, Hai Phong Thermal Power JSC has supplied over 8.7 billion KWh to the national grid. Notably, in the first half of this year alone, the company supplied over 2.2 billion KWh, accounting for over 70 percent of the yearly plan.

According to General Director of Hai Phong Thermal Power JSC Nguyen Thuong Quang, in the first half of this year the company focused on full capacity production to meet the requirements of the national grid system. However, in the third quarter, only one turbine was working as the company conducted maintenance on the other toward getting the Final Acceptance Certificate (FAC); it is also rainy season, so output generally falls to only 450 to 500 million KWh.

Quang said that since Hai Phong Thermal Power Plant 1 started operating, it has met the majority of output requirements and demands of the power market. The plant is also coordinating with the contractor to complete documents for the FAC for turbine 2 and will step up these procedures in November 2013. After receiving these certificates, the contractor will officially hand over the two turbines to the company.

Lessons learned

Using its experience with Hai Phong Thermal Power Plant 1, Hai Phong Thermal Power JSC is pushing forward with its second plant’s turbines 3 and 4 with a designed capacity of 600 MW. It will be built under an Engineering, Procurement, Construction contract (EPC) signed by the company and China’s Dongfang Electricity-Gas Group.

Turbine 3 began electricity production on August 30 and turbine 4 is 90 percent complete.

Quang also said the two sides committed to finish turbines 3 and 4 on scheduled. “Close coordination to remove obstacles will contribute to the progress of the project with an aim to getting turbine 4 to generate electricity for the first time in October this year,” Quang stressed.

According to the EPC contract, turbine 4 will begin operating in the second quarter 2014. After the handover, Hai Phong Thermal Power JSC will take charge and generate commercial electricity from all four turbines with total designed capacity of 1,200 MW.

Hai Phong Thermal Power Plants 1 and 2 are situated in Tam Hung Commune, Thuy Nguyen District, Hai Phong City and have a capacity of 1,200 MW and total investment of over US$1.2 billion. They will generate about 7.2 billion Kwh each year, earning projected revenues of about VND7 trillion, of which VND400 million in taxes will go into the state coffers. The power production processes of the plants include two main facilities, namely furnaces and turbines with 220 kV and 110 kV electricity transmission systems.

Time for a change

The staff of Hai Phong Thermal Power JSC are confident in the stable operation of the turbines and the company’s board of directors said they would strive to fulfill and surpass the target output plan assigned by Power Generation Corporation 2 (Genco 2) and state-owned Electricity of Vietnam (EVN).

However, Quang could not hide his concern because of the problems with the competitive electricity market, bank loans and exchange differences. In addition, if the annual power output assigned by the Electricity Regulatory Authority of Vietnam – ERAV (under the Ministry of Industry and Trade) does not match the output in power sales contracts, the financial balance of the company would be in jeopardy. Therefore, Hai Phong Thermal Power JSC asked ERAV and EVN for support in fulfilling its mission. At the same time, it will strive to ensure progress of the project and to provide efficient and safe power production and business activities, toward guaranteeing stable power supplies in the “economic triangle” – Hanoi-Hai Phong-Quang Ninh.

Hai Phong Thermal Power JSC is a busy and enthusiastic working environment with its staff clearly showing their passion for sustainable and environmentally friendly development. The company has made a name for itself a solid player in Vietnam’s power industry./.

By Kim Tuyen