The establishment of PV Power marked the diversification of ownership of power supply sources for the country in the process of moving towards a transparent and competitive power market, at the same time turned power generation into one of the five main business sectors of PetroVietnam. By the middle of the coming decade, PV Power aims to receive and operate 3 more coal thermal power plants and 9 new gas power plants invested by PetroVietnam with an additional capacity of more than 10.000MW, equivalent to about 50 billion kWh to be added to annual electricity production.
Over 10 years of establishment and growth, PV Power now holds the second place after Vietnam Electricity (EVN) in power production and the first place in gas power production, contributing to ensuring national energy security.
According to PV Power’s President & CEO Nguyen Xuan Hoa, PV Power has built up a solid financial source. So far, its total assets have reached nearly VND 70 thousand billion, which is an increase of VND 24.4 thousand billion compared with 2007 (the year when it was established); the equity capital amounts to more than VND 27.3 thousand billion; and the annual revenue growth rate is over 12% per year. PV Power is the country's second largest power producer with a total installed capacity of 4,208MW, accounting for more than 10% of the national capacity, an increase of nearly 6 times against the time when it was formed. This figure is expected to increase more than 3 times in the next 10 years.
PV Power has successfully diversified the input fuel for power generation. From the first assignment to operate Ca Mau 1 Thermal Power Plant, PV Power has now been efficiently operating gas thermal power plants (Ca Mau 2, Nhon Trach 1 and 2); hydro power plants (Hua Na, Đakdrinh, Nam Cat); and coal thermal power plant (Vung Ang 1). Up to now, the corporation has produced and supplied more than 138 billion kWh to the national grid or over 21 billion kWh annually, making up more than 13% of the national power production.
PV Power actively took part in the competitive market of power generation right after the market officially commenced its activities in July 2012. Its participation in the electricity market has helped enhance production and business performance and the efficiency of the use of state capital. Currently, some of PV Power’s experts have joined the consultant teams at various levels of the Government for policy making in the field of competitive power market.
So far, the technical staff of PV Power have been able to master and efficiently run modern equipment and machinery, gradually replace foreign contractors, actively manage the regular repair work, the medium and large-scale maintenance of the corporation’s power plants and are ready to provide services to all power plants throughout the country.
PV Power has also proved its capability in coal supply services, especially in the import of coal for power plants. At present, PV Power is one of very few domestic entities permitted by the Government and the Ministry of Industry and Trade to directly import coal for power production.
In 2017, a focal task for PV Power besides its production and investment tasks is that PV Power has to complete the equitisation process and transform its business model. Chairman of PV Power Management Board Ho Cong Ky said PV Power is giving a push to the equitisation progress, and the initial public offering (IPO) will be expected in October, 2017. The enterprise value of PV Power is estimated at VND 33 trillion. As planned, PV Power will sell a 49% stake late this year with priority given to strategic investors. Over 100 businesses have shown their interest in acquiring PV Power stakes. However, after screening the corporation is now considering ten large investors from Japan, the Republic of Korea, ASEAN, the Middle East and Europe.
In the coming years, given the growing depletion of fossil energy sources, the trend of industrial development in harmony with the environment will become the mainstream, that means opportunities will show up together with many challenges, especially the development of new, clean and green fuel sources while still ensuring competitiveness. As the strategic orientations, by the middle of the coming decade, PV Power will receive and operate three more coal thermal power plants and 9 new gas thermal power plants invested by Petrovietnam with an additional capacity of more than 10,000MW, equivalent to 50 billion kWh to be added to annual electricity production.
PV Power leader informed that 9 gas thermal power plants are Kien Giang 1 and Kien Giang 2 (using Block B - O Mon gas), Nhon Trach 3 and Nhon Trach 4 (using imported gas), Central Region 1 and Central Region 2 (using Ca Voi Xanh gas), Son My 2.1, Son My 2.2, and Son My 2.3 (using imported gas).
PetroVietnam is completing the procedure for reporting to the Ministry of Industry and Trade to seek the Prime Minister’s permission to allow PV Power to invest in Nhon Trach 3 and Nhon Trach 4 projects while the other 7 plants are still invested by PetroVietnam. To prepare for the investment, PV Power is devising a plan to provide funding for Nhon Trach 3 and Nhon Trach 4 Power Plants with a total investment of around USD 1.4 billion; therein PV Power will prepare the counterpart contribution of about 20%. The investment in these gas power plants will be effective because the electricity demand in the South is forecast to grow about 11% per year.
Box 1: PV Power was established by Decision No. 1468/QD-DKVN dated 17 May 2007 of the Vietnam Oil and Gas Group. Its main mission is to develop new power sources, produce and trade electricity. The target is to develop PV Power into a strong industrial and commercial corporation gaining local and international prestige.
Box 2: Over 10 years of existence, PV Power has generated 138 billion kWh of electricity and grossed about VND 180 trillion (USD 8.4 billion) in revenue, earned pre-tax profits of VND 9.63 trillion (USD 423 million) and contributed VND 8.83 trillion (USD 388 million) to the State Budget.
Box 3: PV Power is the second largest power producer in the country with the total installed capacity of 4,208MW, accounting for more than 10% of the national capacity, an increase of nearly 6 times against the time when it was formed. This figure is expected to more than triple in the next 10 years.
