September 24, 2020 Read More →

EVN payment for IPPs likely to rise above 60% in next three years

VN Express:

Vietnam Electricity (EVN) will face increasing financial difficulties in the coming years as its payment obligations to independent power projects keep rising.

National utility EVN’s gross margin fell from 15.1 percent in 2015 to 12.9 percent last year due to rising costs of payment to new coal-fired independent power projects (IPPs), a recent report by the Institute for Energy Economics and Financial Analysis (IEEFA) says.

As EVN has to pay these projects a fixed price for their power, as more such plants come online, the sole power distributor in the country will experience a financial crunch.

Between 2015-2019, EVN’s own generation capacity shrank from 61 percent to 52 percent of the total system, a ratio that IEEFA Vietnam expects to fall even more rapidly in comping years.

[Dat Nguyen]

 

More: National power utility faces financial crunch

Posted in: IEEFA In the News

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