According to the 2022 summary report of the Electricity of Vietnam (EVN): Despite the best efforts to reduce costs, the solutions that have been and are being implemented still cannot cover the cost of purchasing electricity (due to the sharp increase in input parameters, such as imported coal prices, blended coal prices, gas prices, world oil prices and additional electricity purchase costs when power plants enter the electricity market), causing EVN to lose about 31,360 billion dong (excluding exchange rate difference).
Factors affecting EVN’s loss
Firstly: The price of imported coal increased sharply: The influence of the Russia-Ukraine war – When the European Union and the United States imposed sanctions on the Russian economy, the supply of gas from Russia to Europe immediately decreases gradually (on average, 40% of the continent’s industrial and power production needs).
Second: Purchase price of electricity from renewable energy sources: Many experts say that: Without solar and wind power sources, it is likely that coal-fired power will have to generate even more power in 2022, and EVN will suffer a heavier loss due to the soaring price of imported coal.
Consequences when EVN “runs out of money”
The imbalance of cash flow in production and business activities of EVN will entail many serious consequences, affecting the assurance of electricity supply for socio-economic development of the whole country, the risk of not achieving planned GDP growth.
Source: Vietnam Energy_Consequences when Vietnam Electricity Group “runs out of money”