The demand for electricity of Ba Ria – Vung Tau (BR - VT) averages more than 7 million kWh, but the allocated output is only 6 million kWh. Thus, the power cut frequency in the province since the beginning of April has been “every two days”, 1.5 times higher than the same period in 2009, which has dramatically affected all aspects of life.

Due to the lack of electricity, the provincial electricity sector has been forced to apply power cut to all areas. Even the production areas, especially the industrial production which used to be “preferential power supply area”, now have to suffer frequent power cut as well.

Calling for energy conservation

For many years, the industrial area has accounted for well over 70% of energy consumption of the whole province. 27 heavy industrial plants in industrial zones alone consume roughly half the power consumption of the whole province. “If we don’t press these plants, it will be very difficult to save energy and there will be risk of grid break-down. So, it is time to execute every measures to save”, said Mr. Nguyen Van Giap – Deputy Director of BR-VT Department of Electricity. “With the energy consumption of over 70% of the whole province, if this area can save a fraction of their energy use, it will contribute much to energy conservation of the locality”, Mr. Giap claimed.

Steel production consumes much energy

To ensure that there will be no mess in people’s life as well as social security, production and the economy, the Department of Industry and Trade and provincial Electricity had a meeting with local businesses to persuade them to reduce the current energy consumption by 30-50% to compensate for the daily lack of power. Currently steel plants consume tens of millions of kWh per month (Phu My Steel consumes 24 million kWh per month, Viet Steel 28 million kWh in March, Posco 12.5 million kWh). These companies agreed to reduce production at certain points of time on their own initiative to save energy. However, they admitted that they would have many difficulties taking opportunities to “speed up” production after the crisis.

Seafood processing…very difficult

Seafood processing companies, besides manufacturing plants, are not exceptions. Since the late March, the “business season” of seafood processing companies entered the peak period. Specifically, their output increases 5-7 times higher than that in the earlier months. Therefore, power shortage at this time has posed great difficulties on them, ranging from breaking contracts with customers to delayed processing of raw materials from fishermen. Many companies have to operate in the red. Mr. Le Van Khang, General Manager of Con Dao Seaproducts Import Export Joint Stock Company, said: “We have to use full capacity of generators in days of power cut to preserve processed products. As already calculated, to preserve a shipment of 20 tons, the cost for generator oil is VND42 million per day, while using the grid only costs VND7-8 million. This puts the company in a miserable situation.”

However, this is only the tip of the iceberg. As forecast, if the drought condition continues, the allocated output for BR-VT will be even more limited. In the short term, as the provincial electricity has announced, after May 11th, power cut frequency will be every 3 days. Companies will have to face much more difficulties in production.

Saving, yes but not enough

According to the Department of Industry and Trade, all areas of the province still have much energy-saving potential. Specifically, public lighting can save 26.5%, government agencies 15-20%, industrial areas 10-30%. Statistics of BR-VT Electricity shows that the average energy consumption of the administrative and professional area is about 26-27 million kWh per year. But during 2009, this area only saved 100,000 kWh. In the first quarter of 2010, energy consumption of this area was even higher than that of the same period in 2009. The consumption increase of 16,410 kWh is equivalent to VND164 million.

By Minh Duc