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STUDY ON PRIVATE-INITIATIVE INFRASTRUCTURE PROJECTS

IN DEVELOPING COUNTRIES IN FY2010

STUDY ON THE SMART GRID PROJECT

IN HO CHI MINH CITY

THE SOCIALIST REPUBLIC OF VIETNAM

FINAL REPORT

March 2011

Prepared for:

The Ministry of Economy, Trade and Industry

Prepared by:

Ernst & Young ShinNihon LLC

Japan External Trade Organization (JETRO)

Tokyo Electric Power Services CO., LTD (TEPSCO)

OPMAC Corporation

Preface

This report summarizes the results of the "Study on the Smart Grid Project in Ho Chi Minh City The

Socialist Republic of Vietnam" carried out as a fiscal year 2010 project by Tokyo Electric Power Services

Co., Ltd. and OPMAC Corporation under commission from Ernst & Young ShinNihon LLC.

This study, “Study on the Smart Grid Project in Ho Chi Minh City the Socialist Republic of Vietnam”, is

to investigate the feasibility of the model Project with investment of about 42 million US$ for Smart Grid

which consists of Distribution Automation System (DAS) / Automated Meter Reading system (AMR) /

Demand Response (DR) / Solar Power in order to solve the shortage of power supply and improve the

reliability of power distribution network in EVN HCMC.

It is our hope that this report is helpful in the realization of the project described above and is also of use

to interested parties in Japan.

March 2011

Tokyo Electric Power Services Co., Ltd.

OPMAC Corporation

Project area: Phu Tho Power Company (District10 and 11) of HCMC PC

Scale: 1:42,000

Dist10 and11,Project area in HCM city

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Abbreviation and Acronyms

Organization

ASEAN Association of Southeast Asian Nations

CRIEPI Central Research Institute of Electric Power Industry

EVN Vietnam Electricity

EVN HCMC Ho Chi Minh City Power Corporation

GOJ Government of Japan

GOV Government of Vietnam

HCMC Ho Chi Minh City

IE Institute of Energy

IPP Independent Power Producer

IUCN International Union for Conservation of Nature and Natural Resources

JBIC Japan Bank for International Cooperation

JEPIC Japan Electric Power Information Center Inc.

JICA Japan International Cooperation Agency

MOIT Ministry of Industry and Trade

Moody’s Moody's Investors Service Inc.

MPI Ministry of Planning and Investment

NEDO New Energy and Industrial Technology Development Organization

NEXI Nippon Export and Investment Insurance

NLDC National Load Dispatching Center

OECD Organization for Economic Co-operation and Development

S&P Standard & Poor's

SRLDC Southern Region Load Dispatching Center

WTO World Trade Organization

Others

A/C Air Conditioner

ALBS Automatic Load Break Switch

AMI Advanced Metering Infrastructure

AMR Automated Meter Reading

Ba3 Rating Symbols(Moody’s)

BB Rating Symbols(S&P)

BOT Build, Operate and Transfer

B-PLC Broadband Power Line Carrier

BT Battery

CB Circuit Breaker

CDM Clean Development Mechanism

CPU Central Processing Unit

CT Current Transformer

DAS Distribution Automation System

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DB Database

DGR Directional Ground Relay

DMS Distribution Management System

DR Demand Response

DS Disconnecting Switch

DT Distribution Transformer

EIA Environmental Impact Assessment

EIRR Economic Internal Rate of Return

EMS Energy Management System

E/N Exchange of Notes

EPC Environmental Protection Commitment

EV Electrical Vehicle

FCB Feeder Circuit Breaker

FEP Front End Processor

FIRR Financial Internal Rate of Return

F/S Feasibility Study

GDP Gross Domestic Product

GIS Gas Insulated Switchgear

GW Giga Watt

GWh Giga Watt Hour

ha Hectare

HA Home Automation

HEMS Home Energy Management System

HIV/AIDS Human Immunodeficiency Virus / Acquired Immunodeficiency Syndrome

HV High Voltage

ICT Information Communication Technology

IEC International Electro-technical Commission

IRR Internal Rate of Return

JPY Japanese Yen

kV kilo Volt

kVA kilo Volt Ampere

kW kilo Watt

kWh kilo Watt Hour

L/A Loan Agreement

LAN Local Area Network

LBS Load Break Switch

LNG Liquefied Natural Gas

L-PLC Low Speed Power Line Carrier

LV Low Voltage

MRI Magnetic Resonance Imaging System

M-RTU Master Remote Terminal Unit

MUS＄ Million United States Dollar

MV Medium Voltage

MVA Mega Volt Ampere

MW Mega Watt

MWh Mega Watt Hour

NPV Net Present Value

iii

OCB Oil Circuit Breaker

OCR Over Current Relay

ODA Official Development Assistance

OH Over Head

O&M Operation & Maintenance

PCB Polychlorinated Biphenyl

PCS Power Conditioning Subsystem

PDP Power Development Plan

PLC Power Line Carrier

PPF Private Public Fund

PPP Public-Private Partnership

PQ Pre Qualification

PRN Printer

PV Photovoltaic

R Resistance

REC Recloser

RMU Ring Main Unit

RTU Remote Terminal Unit

SCADA Supervisory Control and Data Acquisition

SEA Strategic Environmental Assessment

SPM Suspended Particulate Matter

TM Telemeter

TOU Time of Use

TR Transformer

TRD Transducer

TWh Tera Watt Hour

UG Under Ground

UHF Ultra High Frequency

US＄ United States Dollar

VAT Value Added Tax

VCB Vacuum Circuit Breaker

VES Vietnam Environmental Standard

VHF Very High Frequency

VT Voltage Transformer

WASA Wide-Area Situational Awareness

WHM Watt Hour Meter

XLPE Cross Linked polyethylene

ZCT Zero Phase Current Transformer

ZPD Zero Phase Detection

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Study on Private-Initiative Infrastructure Projects in Developing Countries in FY2010

Study on The Smart Grid Project in Ho Chi Minh City The Socialist Republic of Vietnam

TABLE OF CONTENTS

Executive Summary

1 Background of Project and Necessity ························································································ 1

2 Fundamental policy of this project ···························································································· 2

2.1 Fundamental policy··········································································································· 2

2.2 Problems and the solution ······························································································· 3

2.3 Advantages ····················································································································· 5

3 Overview of this project ··········································································································· 5

3.1 Fundamental idea of Project ······························································································ 5

3.2 Configuration of Project ···································································································· 7

3.3 Project cost ······················································································································· 8

3.4 Overview of preliminary economic analysis ······································································ 9

3.4.1 Financial Analysis ································································································· 9

3.4.2 Economic Analysis ································································································ 9

3.5 Environmental and social analysis ····················································································· 10

3.5.1 Project impact on environmental and social aspects ················································ 10

3.5.2 Environmental Legal Framework and Application to the project ····························· 10

4 Implementing schedule ············································································································· 11

5 Feasibility study ······················································································································· 12

5.1 Review on Availability of Finance ····················································································· 12

5.2 Feasibility for implementing project ·················································································· 12

5.3 Necessary activities··········································································································· 12

6 Competitive ability of Japanese Company················································································· 12

6.1 DAS ································································································································· 12

6.2 AMR System ···················································································································· 13

6.3 EMS ································································································································· 13

6.4 Solar Power ······················································································································ 14

6.5 Integrated System ············································································································· 14

7 Schedule to realize this project and the objection ······································································ 15

7.1 Detail schedule to realize the project ················································································· 15

7.2 Objection and the solution ································································································· 15

8 Map of project area in survey country ······················································································· 17

Chapter 1 Outline of the Country and Sector

1.1 Economy and Financial Situation of the Country ······························································· 1-1

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1.2 Outline of the Project Sector ······························································································ 1-2

1.2.1 EVN Organization ································································································· 1-2

1.2.2 Power Demand and Supply ···················································································· 1-4

1.2.3 Power Generation Facility ······················································································ 1-9

1.2.4 Transmission and Distribution Facility Outline ······················································· 1-10

1.2.5 Electrification Ratio ······························································································· 1-12

1.2.6 EVN Operational Target························································································· 1-12

1.2.7 Electricity Tariff ···································································································· 1-13

1.3 Situation of Project Area ···································································································· 1-15

1.3.1 Situation of EVN HCMC ······················································································· 1-15

1.3.2 Situation of Phu Tho Power Company ···································································· 1-19

1.3.3 Existing Facilities and System of EVN HCMC······················································· 1-20

1.3.4 Existing Facilities and System of Phu Tho Power Company ··································· 1-36

1.3.5 Situation of Outage and Distribution Loss ······························································ 1-49

Chapter 2 Study Methodology

2.1 Overview of Study ············································································································· 2-1

2.2 Study Methodology and Team Organization ······································································· 2-1

2.2.1 Study Methodology ······························································································· 2-1

2.2.2 Team Organization ································································································· 2-2

2.2.3 Counterpart ············································································································ 2-2

2.3 Survey Schedule ················································································································ 2-2

Chapter 3 Justification, Objectives and Technical Feasibility of the Project

3.1 Background of Project and Necessity ················································································· 3-1

3.1.1 Scope of Project ····································································································· 3-1

3.1.2 Current Analysis and Future Prospect ····································································· 3-1

3.1.3 Advantage by Project ····························································································· 3-2

3.1.4 Comparison between the Proposed Project and Other Method ································ 3-11

3.2 Analysis Needed for Decision of Project Contents ····························································· 3-14

3.2.1 Demand Forecast ··································································································· 3-14

3.2.2 Issue and Analysis of Project ·················································································· 3-16

3.2.3 Technical Analysis ································································································· 3-17

3.3 Overview of Project Plan ··································································································· 3-35

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3.3.1 Fundamental Policy of This Project ········································································ 3-35

3.3.2 Overview of Design and Specification ··································································· 3-36

3.3.3 Contents of Project ································································································ 3-53

3.3.4 Problems of Proposed System and Solution ···························································· 3-55

Chapter 4 Evaluation of Environmental and Social Impacts

4.1 Environmental and Social Condition of Target Area ··························································· 4-1

4.1.1 Situation Analysis ·································································································· 4-1

4.1.2 Future Projection(“without” the Project) ································································ 4-1

4.2 Project Effectiveness in Environmental Improvement ························································ 4-2

4.2.1 Social Positive Impact on Customers by DAS ························································ 4-2

4.2.2 Peak Shift and Energy Saving by AMR ·································································· 4-2

4.2.3 Distributed Power Generation Facilities (Solar Power) ··········································· 4-3

4.3 Project Impact on Environmental and Social Aspects ························································· 4-3

4.3.1 Screening based on JICA guideline ········································································ 4-3

4.3.2 Comparison with Alternatives ················································································ 4-9

4.3.3 Results of Local Consultations for Information Collection ······································ 4-13

4.4 Summary of the Law to be related to considered Environmental Social Impacts in Vietnam 4-19

4.4.1 Summary of the Law to be related to considered Environmental Social Impacts ····· 4-19

4.4.2 Summary such as the EIA in Vietnam ····································································· 4-22

4.5 Necessary Actions Taken by the Project Proponent ···························································· 4-24

Chapter 5 Financial and Economic Evaluation

5.1 Estimation of Project Cost ································································································· 5-1

5.1.1 Scope ···················································································································· 5-1

5.1.2 Project Cost ········································································································· 5-2

5.2 Preliminary Economic and Financial Analysis ··································································· 5-4

5.2.1 Expected Effect of the Project ················································································ 5-4

5.2.2 Financial Analysis and Economic Analysis ····························································· 5-10

Chapter 6 Planned Project Schedule ·························································································· 6-1

Chapter 7 Implementing Organization

7.1 Implementing Organization ······························································································· 7-1

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7.2 Competence of the Organization ························································································ 7-2

7.2.1 MPI ······················································································································· 7-2

7.2.2 MOIT ···················································································································· 7-2

7.2.3 EVN head office ···································································································· 7-2

7.2.4 IE ·························································································································· 7-2

7.2.5 EVN HCMC head office ························································································ 7-2

7.2.6 Phu Tho Power Company ······················································································ 7-3

Chapter 8 Technical Advantages of Japanese Company

8.1 Entry Method and Form of Japanese Company ·································································· 8-1

8.2 International Competitive Ability of Japanese Company ···················································· 8-1

8.2.1 DAS ······················································································································ 8-1

8.2.2 AMR System ······································································································· 8-2

8.2.3 EMS ······················································································································ 8-2

8.2.4 Solar Power ··········································································································· 8-2

8.2.5 Integrated System ·································································································· 8-3

8.3 Necessary Countermeasure to Obtain the Contract by Japanese Company ·························· 8-4

Chapter 9 Financial Outlook

9.1 Fund Source and Funding Plan ·························································································· 9-1

9.1.1 Fund Source ·········································································································· 9-1

9.2 Review on Availability ······································································································ 9-3

9.3 Cash Flow Analysis ··········································································································· 9-11

9.3.1 Preconditions ········································································································· 9-11

9.3.2 Conclusion ············································································································ 9-12

Chapter 10 Action Plan and Issues

10.1 Action Plan for Advancing This Project ············································································· 10-1

10.2 Activity of Related Organization in Vietnam Government ················································ 10-2

10.2.1 Activity of MPI ····································································································· 10-2

10.2.2 Activity of MOIT and EVN ··················································································· 10-3

10.3 Legal and Financial Constraints, etc. of Partner Country··················································· 10-3

v

10.3.1 Legal Restriction ··································································································· 10-3

10.3.2 Financial Restraint ································································································· 10-4

10.4 Necessity of Additional Detail Analysis ············································································ 10-4

1

Executive Summary

1 Background of Project and Necessity

GDP in Vietnam is anticipated that the growth rate from 7% to 8% will continue up to 2020 and the growth

of consumption is around 8 to 15%. According to Institute of Energy (IE) report based on the GDP, the

growth rate of power consumption is anticipated to continue the growth rate of 12.7% for every year up to

2030.

Besides, the power generator had been constructed with growth rate of 13.7% for every year up to 2009.

The power in Vietnam has been lacked under the maintenance and trouble even though the generators have

been constructed. Therefore, Vietnam will promote plans to increase the power from 20 GW in 2010 to 52

GW in 2020.

As for solution for the shortage of power, the constructions of power generators will be planned but there

are the following problems.

1) The construction plans of hydraulic power generators which have 35% in existing supply capacity, have

not been advanced smoothly due to problems such as habitant movement etc, so that the hydraulic

generator can not be expected to cover the future consumption with high growth.

2) Peak consumption in 2020 will be increased and be reached to around 52 GW, so that new power plants

of 35 GW are needed up to 2020.

As for Coal fired thermal power plants, the development with 35,000 MW needs to provide 100 million

tons per year while the output of maximum coal mining reached about 70 million tons per year.

3) As for gas and oil fired thermal power plants, the construction is normally slow and the energy source in

thermal power projects causes green house gas problem.

4) As for nuclear power plant, the signing for the construction had been implemented by Russia and Japan.

If nuclear power plant meets the schedule of the 6th Power Development Plan (PDP), the first plant will

be commissioned after 2020.

As mentioned above, the shortage of power in Vietnam is serious up to 2020 especially and the

constructions of current and fossil power plants can not be expected to solve the problems. Therefore, it is

necessary to accelerate the installation of renewable energy and connection to distribution network and

advance the energy efficiency in parallel.

2

Government of Vietnam (GOV) has also promoted the energy efficiency in parallel and the new energy

efficiency law including acceleration of the energy efficiency and support for the development of

renewable energy will be established on 1st of January in 2011.

Regarding renewable energy, wind power / biomass / geothermal / small hydropower / Solar are considered

as the renewable energy in Vietnam and the potential reported by IE is as follows.

Wind Power: 1,800 MW

Biomass energy: more than 150 MW

Geothermal energy: 340 MW

Small hydropower: 4,000 MW

Solar energy: 4～5 KWh/m2

Small hydropower has occurred damages by flood during typhoon etc, so that the additional construction

will be difficult by objections of inhabitants. The capacity of Biomass and Geo thermal energy is not so

large. Therefore, Wind and Solar power will be expected to cover the increasing consumption in Vietnam.

Especially in case of Solar energy, the generation capacity is around 3,300GW under assumption of

utilizing 1/10 land in Vietnam.

However, the Wind and Solar power are unstable due to the influence of weather condition, so that the

rising of end voltage and the fluctuation of frequency are occurred. This smart grid project with Energy

Management System (EMS) can solve the problems.

In addition, the energy efficiency such as peak-cut and reduction of distribution loss can also contribute to

solve the shortage of power. So, it is necessary to advance the peak-cut and the reduction of distribution

loss by this smart grid project with Demand Response (DR) / Automated Meter Reading (AMR) and

Advanced Distribution Automation System (DAS).

It is important to improve the reliability of distribution network as policy of power sector. This smart grid

project using Advanced DAS can also improve the reliability of distribution network due to reduction of

outage duration.

2 Fundamental policy of this project

2.1 Fundamental policy

This project will be recommended to implement based on the following fundamental policy.

3

Application of renewable energy such as Solar Power → Solution for shortage of power

Application of EMS to control switch of Solar power and Battery → Solution for connecting to

distribution network

Peak-cut by DR → Energy saving and efficiency

Reduction of distribution loss by DAS and AMR → Energy saving and efficiency

Improvement of reliability (reduction of outage duration) by DAS → High reliability for power

supply

2.2 Problems and the solution

As for promoting this project, the problems on Peak-cut by DR and Cost of solar power will be considered

and the following solutions will be proposed.

1) Peak-cut by DR

Peak-cut by DR are proposed as follows.

Large customer: Unimportant loads such as Air Conditioner (A/C) are switched off by DR.

Normal customer: All of loads are switched off by DR.

Based upon customer survey, large customers may well accept the outage of unimportant load for short

duration (example: 30 minutes) due to no outage of important load.

Normal (Small) customers are under outage for short duration, so that the dissatisfactions in the

customers are concerned in spite of short outage. As for the solution, the customers can switch on by

manual operation while the outage by DR happens. However, if most of customers will switch on, the

effect of peak-cut decrease, so that incentive is needed to advance the effect. The following incentives

are considered as ideas.

If manual operation will be implemented in the state of peak-cut, the tariff becomes much higher.

The cooperated customers can receive the privilege such as preferential tax or tariff.

The cooperated customers can receive the citation as the cooperation.

There are the following benefits as customers of Peak-cut by DR.

Residential customer under the planned outage for Peak-cut can not recover the outage so far but

this proposed system can recover the power by the manual operation on condition that the customer

pays higher tariff.

Large customer stopped all of power under the planned outage so far but the outage by this

proposed system can be limited to unnecessary load such as A/C etc. Therefore, the important load

such as product facilities can keep the power even though the planned outage for Peak-cut will be

4

implemented.

Regarding the peak-cut by DR, it is necessary to consider whether there are some problems for law in

Vietnam or not. According to Ministry of Industry and Trade (MOIT), there are no problems on law

for the peak-cut but take care to cut off frequently because the National Diet will be possible to discuss

due to a lot of complaints of customers. Vietnam Electricity (EVN) has already cut off the customers on

each substation, so that we think this better outage procedure for each customer will be acceptable.

Regarding the peak-cut by DR, there are no problems on law in Vietnam but the incentive shall be

considered in order to accelerate the energy efficiency.

2) Renewable energy such as Solar Cell

According to the International Forum on Wind Energy Development of Vietnam on 5/11/2009, Solar

Energy in Vietnam is 4～5 kWh / m2 , so that the conversion to kW is around 0.1 kW / m

2 . The area of

Vietnam land is around 330,363 k m2 and the capability of power can be calculated as follows.

Assumption: 1/10 in land is available for installation of Solar Power.

kW x 330,000 x 106 x 1/10 = 3,300 GW

The capability of solar power is huge and the solar is effective for solution on increasing peak load.

However, batteries shall be equipped in order to solve unstable generation problems influenced by

weather condition etc, so that the cost becomes more expensive.

In case of Japan, the following support system on law has been carried out, so that the Solar Power

could be expanded up to 1.4GW in 2005 and will be anticipated to reach to 14～28 GW in 2020.

Government support a part of the installation cost.

Power companies have purchased with higher tariff (48 yen /kWh) for the Solar Power since

November in 2009. However, the increased expenses on power companies can add to the normal

tariff as green cost.

In case of Vietnam, the supporting money for renewable energy will be considered on new law of

energy efficiency which will be set up on 1st of January in 2011. However, the supporting money is

small and is limited, so that the solar power will not expand widely. In order to accelerate the

installation of solar power, not only is the cost decreased, but also the additional supporting money or

other regulation is needed.

When a lot of renewable plants will be connected to the distribution network in EVN, problems such as

voltage-drop / safety etc occur. The following solutions against the problems will be considered in this

5

project and will be confirmed.

Solar cell with battery will be installed to 2 locations.

The reversed power and battery are monitored and controlled by EMS.

EMS also monitors and controls the switch for the solar.

2.3 Advantages

There are mainly five economical benefits as follows.

A) Reduction of outage duration by DAS

B) Effective construction of Substations by DAS

C) Reduction for technical loss of MV line with improvement of load unbalance by DAS

Non-technical loss reduction by AMR including smart meter

D) Solution of power shortage by Solar power

E) Effective construction of Power Generators by DR

before the project

(a)

after the project

(b)

(a)-(b)

A) Decrease of Power Failure 373 min. 77 min.

-296min.

（ 4.93 h）

B) Improve of maximum

average capacity rate of the

substation

75% 83% ＋8%

C) Decrease of loss

(technical loss of MV line)

(non-technical loss)

(1.72%）

(2.43%)

(1.16%）

（ 1.3%）

（ -0.56%）

（ -1.13%）

D) Solar Power Generation － 57,200 kWh/y ＋57,200 kWh/y

E) Demand Control by cutting

demand caused by air-

conditioners

－ 255MW＊2 h

＊40 days/y

255MW＊2 h

＊40 days/y

3 Overview of this project

3.1 Fundamental idea of Project

The details of this project based on the fundamental policy are as follows.

1) Smart meter will be installed to all of customers in Phu Tho Power Company, so that AMR and DR can

be implemented.

6

2) DR can control the following load.

Residential customer: All of loads are switched off during short duration (ex: 30 minutes).

Large customer: Unnecessary load except product line etc can be switched off.

3) Solar power system with battery as asset of EVN will be installed to 2 areas as pilot project and be

connected to MV distribution feeder directly. EMS in control center can monitor and control the reverse

current and the battery.

4) Servers and operator consoles for Advanced DAS with EMS are installed in Dispatch Center for existing

Supervisory Control and Data Acquisition (SCADA) and monitor / control 110kV primary substations

and distribution network in Phu Tho Power Company. Other servers for AMR, DR and EMS etc are

installed in Control Center of Phu Tho Power Company and are connected to the advanced DAS

through LAN and Fiber Optic communication network.

5) Automatic Load Break Switch (ALBS) for Over Head (OH) will be applied as new equipment.

Automatic Ring Main Unit (RMU) for Under Ground (UG) will be also installed as new facilities in

existing room. The existing RMU of manual type will be removed to other suitable feeder as manual

type.

6) Fiber Optic will be applied as backbone network of communication and ZigBee will be applied for last

one mile communication between Remote Terminal Unit (RTU) and customers for at least 10 years.

7

3.2 Configuration of Project

The basic system configuration including all of projects is shown in the following figure.

Control Center

110kV/15kV

Substation

Distributiion feeder

(Overhead)


(Underground)

FCB

LBS

TRD

VS

VCB　Road

Solar Power

RTU

Advanced DAS Server

Smart Meter

Switch

WHM

Comunication

AMR Server

Console

FCB

VSRMU

Battery

PCSPCS

RTU

Concentrator

Concentrator

M-RTU

FEP

Optical fiber

Network

8

3.3 Project cost

The total amount of the project is around 42 MUS$ and the detail is explained as follows.

Scope Quantity

Cost

Remarks Foreign

MUS$

Local

MUS$

1. Advanced DAS / SCADA with EMS EVN HCMC Control Center

1 system

6.5

0.7

1. Advanced DAS with SCADA is installed in existing SCADA center and can implement energy management of distribution feeder.(Solar Power)

2. AMR/DR is installed in Pho Tho Power

Company and is connected to Advanced DAS by data link of Fiber Optic

2. AMR / DR Phu Tho Power Company

1 system

3. Substation facilities 4 SS 1.2 0.2 0.3 MUS$ x 4 = 1.2 MUS$ 1

st stage: 4 substations (110kV)

2nd

stage: expand to 34 substations

4. New RMU 25 units 1.2 0.1 45 kUS$ x 25 = 1,125 kUS$ → 1.2 MUS$

5.New OH DAS equipment

86 units 1.3 0.1 15 kUS$ x 86 = 1,290 kUS$ → 1.3 MUS$

6. Smart Meter, Single-phase,

Three phase Concentrator

90,000 units 8,000 units

196 units

17.0 1.0 120US$ x 90,000 = 10.8 MUS$ 700US$ x 8,000 = 5.6MUS$ 3,000US$×196=0.6MUS$

7. Solar Power 2 units 0.3 0.1 20kW: 0.15 MUS$ 0.15 x 2 = 0.3 MUS$

8. Fiber Optic 0 0 0 Use existing Fiber Optic

9.Engineering Service 1 2.5 0.7 Including Training in Japan

Sub Total - (30.0) (2.9)

10.TAX 1 6.6

0.3

Sub Total x 20% x 10%

11.Physical Contingency

1 1.5 0.1 5% x Sub Total

12.Price escalation 1 0.9 0.3 2.4% for Foreign 8.4% for Local

Total 39.0 3.6

Exchange rate: $1 = 19,491VND = 80.89 yen (by Tokyo Mitsubishi UFJ bank 10/29 2010)

9

3.4 Overview of preliminary economic analysis

The economical benefits of the project are summarized as follows.

Economic benefit Financial benefit

1.Decrease of Power Failure 53,512 US$/y 19,563 US$/y

2.Improve of maximum average capacity

rate in the substation

0.939mil.US$/y

（ Total 18.78 MUS$:

20 years)

0.939mil.US$/y

（ Total 18.78 MUS $:

20 years)

3.Decrease of loss

(technical loss)


532,476 US$/y

1,074,431 US$/y

532,476 US$/y

1,074,431 US$/y

4.Solar Power Generation 5,458 US$/y 5,458 US$/y

5.Peak Demand Control by cutting

demand caused by air-conditioners

-711,713 US$/y

6.885 MUS$/y

-711,713 US$/y

2.470 MUS$/y

3.4.1 Financial Analysis

The Financial Internal Rate of Return (FIRR) of the project is of 6.90%.

FIRR Net Present Value (NPV)

（ Discount rate=6.95%）

Base case 6.90% -0.13 MUS$

Initial investment increases by 10% 6.53% -1.28 MUS$

Operation & Maintenance(O&M) cost increases by

10%

6.78% -0.51 MUS$

Unit price of power purchase decreases by 10% 6.51% -1.28 MUS$

3.4.2 Economic Analysis

The Economic Internal Rate of Return (EIRR) of the project is of 22.79%.

EIRR NPV

(Discount rate=10.0%)

base case 22.79 % +30.35 MUS$

Initial investment increases by 10% 20.69% +27.43 MUS$

O&M cost increases by 10% 22.69% +30.09 MUS$

Construction cost of a new gas turbine power plant

decreases by 10%

20.90% +25.49 MUS$

10

3.5 Environmental and social analysis

3.5.1 Project impact on environmental and social aspects

Based on the JETRO Guidelines for Environmental and Social Consideration as of July 2009,

environmental and social assessment items have been examined in this study for the future scoping

conducted in feasibility studies and Environmental Impact Assessment (EIA) conducted at the stage of

project implementation. When examining project impact on environmental and social aspects, check

items in the Screening Format and the Environmental Checklist (6. Power Transmission and

Distribution Lines) of “JICA Guidelines for Environmental and Social Consideration” (April 2010) have

been referred.

The summarized results are as follows.

1) Sensitive Areas

None of the sensitive areas in the following table are found.

2) Sensitive Characteristics

The sensitive characteristics are not applied to the project.

3) Impacts on Environment

Impacts on environment caused by the project implementation have been analyzed, so that there are

slight affections but no problems due to the easy countermeasures.

3.5.2 Environmental Legal Framework and Application to the project

The Law on Environmental Protection (No.5212005/OH11) replaced the former law stipulated in 1993

and has been implemented since 2006. This law is the basis of EIA and of environmental protection in

Vietnam.

Based on the law, this project is estimated as follows.

1) Strategic Environmental Assessment (SEA )

SEA is not applicable to the Project.

2) EIA

11

EIA will not be applicable to the Project.

3) Environmental Protection Commitment (EPC)

The Project Owners are required to elaborate the EPC when EIA is not required. They are allowed to

start their production and business activities after registering the EPC.

4 Implementing schedule

The tentative implementing schedules are estimated as shown in the following figure as Japanese ODA

loan based on experiences.

Implementing Schedule on Japanese ODA loan

Item 2011 2012 2013 2014 2015

Preparation

Basic design and EVN HCMC / JICA appraisal

Approval by GOJ / GOV

E/N, L/A

Selection of consultant

Engineering Service

Detailed Design

Tendering Stage

Selection of Contractor

Construction

Design

Manufacturing

Installation and test

Commencement

12

5 Feasibility study

5.1 Review on Availability of Finance

Export credit is considered as one of the finance method but Japanese ODA (Yen loan) is the best solution

in the analyzed finance method.

5.2 Feasibility for implementing project

The implementation of this project is feasible as follows.

This project corresponds to Vietnam policy to solve the shortage of power and the low reliability.

This project also corresponds to the needs of EVN HCMC as implementing organization.

According to economical analysis, FIRR is of 6.90% and EIRR is of 22.79%.

(In case of Japanese ODA loan, there is grace period of 10 years and the interest rate is low such as

1.2%.)

5.3 Necessary activities

It is necessary to carry out the following activities in Vietnam side in order to advance this project.

Support of Vietnam government to accelerate the application of renewable energy

Incentive for customers to allow the outage for peak-cut

Request of Japanese government support for technology and finance from Vietnam government

6 Competitive ability of Japanese Company

6.1 DAS

Concerning reliability of power supply, higher technology has been already existed in Japan.

There is strong position compare with other countries.

Distribution network technology in Japan has progressed to solve a lot of subjects since 1960.

DAS was also same, it was kept progressing for improvement of supply reliability and efficiently operation

of equipment.

This DAS is applied voltage type. There is a few countries to apply this type, but this voltage type of DAS

should be definitely better technology than the others. The advantages are;

Judge and split for failure section can be applied without Central Processing Unit (CPU) and

13

communication lines

System upgrade can be applied step by step, if necessary.

Initial cost should be lower than current type which is introduced in Europe.

As of now, it is still continuing to progress for technical innovation by DAS business in Japan.

Combine advanced DAS core technology of Japan and inexpensive distribution network equipment which

made in China can create advantage of DAS.

6.2 AMR System

It is proud for higher reliability of power distribution monitoring technology which was grown in Japan.

Advanced AMR system has been already developed by Japanese companies based on existing higher

technology.

This advanced AMR system can realize two way communications with customers such as demand response

and control internal switch in smart meter as well as measure power consumption at the place from far

away.

Having proof experiment, corporate with NEDO and the state government of New Mexico, proof

experiment has already started that how much effect and influence will be occurred by realize real time

pricing and DR which are told difficult in Japan to test.

This core technology can be applied in this project as well, so that Japanese company can stand strong

position and develop lower cost compare with the other country.

6.3 EMS


Advanced EMS has been already developed by Japanese companies based on existing higher technology.

This advanced EMS can corporate efficiently between many kind of power supply such as solar power and

wind power within smart grid and storage battery. And it is possible to be realized higher supply reliability

and distribution network operation.

Moreover, Curb on fluctuations equipment with storage battery which is used for to prevent influence from

sudden out put fluctuation of Photovoltaic (PV) system, has already developed by Japanese companies.

Relating this technology, proof experiment which will be understood effect and influence on distribution

network in Miyakojima island by install PV system, has already started by independent type of distribution

14

network in Miyakojima of The Okinawa Electric Power Company, Inc.

This technology can be applied in this project as well, so that Japanese company can stand strong position

and develop lower cost compare with the other country.

6.4 Solar Power

Temperature of HCMC is very hot, so that the panel of crystal silicon type with high efficiency can not be

applied to HCMC even though Japanese company has excellent competence. The panel of silicon

amorphous type is proposed in this report due to high temperature characteristics and low cost but other

foreign manufactures can make easily. In order to get higher power in the same space, hybrid type of

crystal silicon and silicon amorphous will be recommendable in detail design. In this case, Japanese

company can be applied with high competence.

As for battery, Lithium Ion battery is recommended in this report and the development has been carried out

in many countries. Japan also has developed as Japanese government projects, so that the high capacity

type for storage of power will be able to get high competence.

Furthermore, Japanese company has high competence for the inverter for solar and battery due to high

efficiency, high characteristics and familiarity to DAS.

6.5 Integrated System

Under becoming aggressively for activity on smart grid, government of every country and every standard

party also aggressively involve to advance standardization of equipments.

In Japan, ministry of economy, trade & industry put target to standardize in international and selected “7

Project and 26 items” as important items to keep strong position of Japanese companies.

They proposed to IEC etc. and put target to be established within three years.

There are 7projects as shown below.

1) Wide-Area Situational Awareness (WASA)

2) Storage battery for distribution network

3) Control of distribution network

4) DR

5) Storage battery for consumer side

6) Electric Vehicle (EV)

7) Advanced Metering Infrastructure (AMI)

15

There is all necessity technology in these projects as below.

1) DAS

2) DR network

3) Wide access communication for meters

4) Short distance communication for meters

5) Optimized management for storage battery for distribution

After fix international standard, Japanese companies can be stronger position for cost competitiveness.

In case that this proposed smart grid will be applied to Vietnam, the system and communication network

can be applied to future technology such as Home Automation (HA), battery by EV etc, so that Japanese

company can keep the high competence as the supplier of the system and communication network.

7 Schedule to realize this project and the objection

7.1 Detail schedule to realize the project

It is necessary to implement the following activities up to starting this project by Japanese ODA loan.

Request of this project (from Vietnam to Japanese Government): the first half in 2011

Implementation of Special Assistance for Project Formation (SAPROF) by JICA Grant: in 2011

E/N, L/A between Vietnam and Japanese government: the first half in 2012

After L/A, the project such as selection of consultant etc will be implemented.

7.2 Objection and the solution

The priority of Vietnam for the smart grid project is lower than the current investment such as power

generation, construction of transmission line / substation and construction of distribution feeder, so that the

investment will be limited.

In case of EVN HCMC, the income is around 800 MUS$ in 2009. The investment of this project is around

40 MUS$ which is not so large as Japan but the project cost means around 5% of the income as EVN

HCMC, so that long term to realize this project will be needed due to other high priority projects. This is

normal case for new project because client does not feel the convenience and necessity due to no

experience.

In order to overcome this blockade, the support of Japanese government such as Demonstration test project

16

supported by NEDO is needed to apply for the model area as pilot project.

After the pilot project, EVN can understand the necessity and feel the benefits, so that the system using

Japanese excellent technology can be expanded to other areas of EVN HCMC and other cities. Moreover,

this system will be expected to expand to other Asian countries and become de-facto standard.

Korea has already applied DAS project in Hai Phong as Grant and AMR project in Hanoi as also Grant. As

for Solar system, Energy Assistance France and Schneider have applied the Build, Operate and Transfer

(BOT) pilot project to Quang Binh province in central Vietnam. Competition between foreign countries and

Japan are very hard but these competitive countries proposed single function as one of smart grid system.

Japan can propose all of functions in smart grid project based on a lot of experience and excellent

technology, so that the effect for energy efficiency in Vietnam becomes much better.

In order to keep the highest position in smart grid system, it is important to obtain the initiative with high

speed. Therefore, Japanese support (ex: Demonstration test project supported by NEDO) shall be quickly

applied for Vietnam as pilot project.

17

8 Map of project area in survey country

Project area: Phu Tho Power Company (District10 and 11) of EVN HCMC

Scale: 1:42,000

Dist10 and11,Project area in HCM city

1-1

Chapter 1 Outline of the Country and Sector

1.1 Economy and Financial Situation of the Country

(This sub-clause is omitted as per contractual condition.)

1-2

1.2 Outline of the Project Sector

The sector of this project is an electric power sector. EVN which is a national organization is governing the

electric power sector of Vietnam under the supervision and management of MOIT.

1.2.1 EVN Organization

EVN is performing directly and indirectly most of the power generation, transmission and distribution both

in wholesale and retail supply of electric power. Moreover, EVN holds, as a holding company, some

subsidiaries, and those subsidiaries are classified into the direct control companies and joint venture

companies.

The organizational chart of EVN is shown in Fig. 1-2-1.

1-3

Fig

. 1-2

-1 E

VN

Org

aniz

atio

nal

Char

t

Sourc

e:

pre

par

ed b

ased

on i

nfo

rmat

ion f

rom

EV

N

1-4

The electric power sector structure by electric power flow is shown in Fig. 1-2-2.

Fig. 1-2-2 Electric Power Flow of Vietnam

[Generation] EVN direct control company EVN group company IPP entrepreneur

[HV Transmission]

[MV Distribution] EVN self-support accounting company: Five Power Companies

[LV Distribution]

Commune

Consumer

Source: Result of field survey with EVN

1.2.2 Power Demand and Supply

1) Maximum power demand

The maximum power demand of Vietnam is 13,867 MW in 2009, and has been increasing with average

annual growth rate of 11.9% during 2001 to 2009.

2) Sales energy

The sales energy of EVN is 76,046GWh in 2009, and has been increasing with average annual growth

rate of 13.7% during 2001 to 2009.

3) Electric power generation

Electric power generation is 87,109GWh in 2009, and is increasing with average annual growth rate of

14.3% during 2001 to 2009, which is shown in Table 1-2-1 below.

EVN direct control company: NLDC Transmission companies

1-5

Table 1-2-1 Power Demand by Area (2001 to 2009)

Area Item 2009 Growth rate

2001 to 2009

Growth rate

2006 to 2009

Growth rate

2008 to 2009

Whole

Country

Demand

(GWh)

Power

generation

(GWh)

Peak (MW)

76,046

87,109

13,867

14.3%

13.7%

11.9%

13.6%

12.9%

10.6%

12.8%

14.7%

9.7%

Northern

Area

Demand

(GWh)

Peak (MW)

29,445

6,207

13.8%

12.3%

13.4%

12.4%

14.5%

22.5%

Central Area Demand

(GWh)

Peak (MW)

7,426

1,482

14.1%

11.7%

12.4%

10.9%

13.7%

17.7%

Southern

Area

Demand

(GWh)

Peak (MW)

39,175

7,001

14.7%

12.9%

13.8%

11.4%

11.6%

11.9%

Source: IE

4) Power Demand Forecast

The demand forecast is made by the 6th PDP which was announced in July 2007, and at present the 7th

Power Master Plan is being drawn up after the subsequent world economy depression etc. Therefore, the

demand forecast made in the draft 7th PDP which the IE and the JICA TA team announced in a

stakeholders meeting in August 2010 is taken into consideration in this study. According to it, the

demand forecast till the year 2030 is made as shown in Table 1-2-2.

Table 1-2-2 Demand Forecast

Item

Forecasted by 2010 2015 2020 2025 2030

Peak (GW) IE 16 31 52 77 110

JICA 18 29 47 71 104

Demand

(GWh)

IE 87,665 169,821 289,882 430,867 615,205

JICA 88,017 156,341 262,545 394,678 580,795

PDP VII 87,700 164,900 257,200 381,100

Demand

growth rate

(%)

IE 14.4 14.1 11.3 8.2 7.4

JICA 14.4 12.2 10.9 8.5 8.0

Source: IE

According to the IE proposal, it is expected that electric power demand would grow with 12.7% per

annum in average (11.5% per annum by JICA TA team proposal) until the year 2030, and therefore

electric power development has become a pressing need.

1-6

The energy demand (GWh) of Table 1-2-2 is shown in Fig. 1-2-3 in a graph. Assumption of IE has

exceeded assumption of the JICA TA team a little. Anyhow, energy demand (GWh) is assumed to

increase by about 3 times in 2020 and by about 6 times in 2030 compared with the energy demand in

2010.

Fig. 1-2-3 Demand Forecast

Demand Forecast

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

2010 2015 2020 2025 2030

Year

GW

h IE

JICA

Source: IE

5) PDP

According to the 7th draft PDP which IE and JICA TA team announced in stakeholder‟s meeting in

August, 2010, electric power development by 2020 are planned as shown in Table 1-2-3.

Table 1-2-3 PDP

Power generation 2010 2015 2020

Electric power production (TWh) 100.9 194.3 329.4

Maximum demand (MW) 16,048 30,803 52,040

Total Installed capacity (MW) 19,937 43,050 69,433

1) Hydraulic power and pumped

storage (MW)

7,726(38.8%) 14,351(33.3%) 17,455(25.1%)

2) Oil & gas fire (MW) 7,703(38.6%) 10,582(24.6%) 13,625(19.6%)

3) Coal fire (MW) 3,231(16.2%) 15,365(35.7%) 32,385(46.6%)

4) Import (MW) 750(3.8%) 1,073(2.5%) 1,839(2.6%)

5) Renewable energy (MW) 527(2.6%) 1,679(3.9%) 3,129(4.5%)

6) Nuclear power (MW) 0 0 1,000(1.4%)

Reserve (MW) 3,889 12,247 17,393

Source: IE

This plan shows that the power generation facility for the year 2015 is planned to be reinforced to 2.2

times of that of the year 2010, and the power generation equipment for the year 2020 as 3.5 times of the

1-7

same, and therefore the implementation of the plan is urgent need. Moreover, in view of the kind of

power generation it is indicated that the power generation ratios by means of hydraulic power and oil

gas tend to fall from now on and the ratio of coal fire generation is going to increase. Furthermore,

renewable energy is also planned to increase to about 6 times in 2020 compared with 2010 and nuclear

power generation (1,000 MW) is expected to introduced in 2020.

Fig. 1-2-4 shows the power generation facility capacity based on the above-mentioned Electric Power

Development Plan as well as actual record.

Fig. 1-2-4 Actual and planned capacity of power generation facility

Source: Created based on IE and EVN data

6) Daily Load Curve

The daily load curve (November 12, 2009) which recorded the maximum demand of the Vietnam power

systems in 2009 is shown in Fig. 1-2-5.

0

10000

20000

30000

40000

50000

60000

70000

80000

2002 2003 2004 2005 2006 2007 2008 2010 2015 2020

Year

Inst

alle

d C

apac

ity

(MW

)

1-8

Fig. 1-2-5 Maximum Daily Load Curve of Vietnam Power System (2009)

EVN Max. Daily Load Curve in 2009

0

2000

4000

6000

8000

10000

12000

14000

16000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Time

MW

Source: Created based on EVN data.

This daily load curve is calculated by the electric energy for every hour, and therefore the short-time

peak value is not reflected. The curve indicates that‟s the maximum peak demand occurs due to a

lighting load in the evening, but it turns out that the demand of daytime is also large. Moreover, the

annual load factor in 2009 is 63% from the Table 1-1 data, which is almost comparable to that of

Japanese electric power companies. EVN estimated a ratio of A/C load (W) against peak load (W) in

summer time to be approximately 40%.

In addition the monthly average daily load curve of “the whole country” and “the southern region” for

the year 2009 are shown in Fig.1-2-6 and Fig. 1-2-7 respectively.

Fig. 1-2-6 Monthly Average Daily Load Curve of Vietnam Whole Country (2009)

Monthly Average Daily Load Curve (Whole Country)

0

2000

4000

6000

8000

10000

12000

14000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Time

MW

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


1-9

Fig. 1-2-7 Monthly Average Daily Load Curve of Southern Region (2009)

Monthly Average Daily Load Curve (Southen Region)

0

1000

2000

3000

4000

5000

6000

7000

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Time

MW

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec


1.2.3 Power Generation Facility

The power generation capacity of Vietnam is 15,678 MW as of the end of 2008, EVN holds about 68% of

them, and IPP is about 32%. The structure of the generation facility is shown below.

Table 1-2-4 Power Generation Facility of Vietnam

Power Generation Facility Installed capacity (MW)

EVN power generation facility total 10,634

Hydropower generation (5,499)

Coal fire power (1,545)

Oil fire power (198)

Gas turbine (3,107)

Diesel (285)

IPP, BOT 5,044

Grand Total 15,678

Source: EVN Company profile 2008 to 2009

The power generation structure for the year 2008 is shown in Fig. 1-2-8.

1-10

Fig. 1-2-8 Power Generation Structure 2008

Source: EVN Company Profile 2008-2009

1.2.4 Transmission and Distribution Facility Outline

The outline of the transmission and distribution facility of EVN is as shown in Table 1-2-5.

Table 1-2-5 Transmission and Distribution Facility in 2007 and 2008

Electric-power-distribution equipment 2007 2008

500kV Transmission line length (km) 3,278 3,455



500 kV Transformer number 15 15

500kV Transformer total capacity

(MVA)

7,050 7,050

220kV Transformer number 88 92


(MVA)

14,727 16,102

110kV Transformer number 583 617


(MVA)

20,828 22,058

MV Distribution line length (km) 121,011 124,910

LV Distribution line length (km) 126,261 142,652

MV Transformer number 944 923

MV Transformer total capacity (MVA) 2,851 2,829

Distribution transformer number 194,607 210,888

Dist. transformer total capacity (MVA) 29,757 33,552

Source: EVN Company Profile 2008 to 2009

Hydropower 35%

Coal fire 10%

Oil fire 1%

Gas turbine 20%

Diesel 2%

IPP, BOT 32%

1-11

The 500kV power system and major power plants are shown in Fig. 1-2-9.

Fig. 1-2-9 500kV System and Major Power Development point by 2020

Source: “Electric Power Industry of Foreign Countries 2008", JEPIC( Japan Electric

Power Information Center Inc.)

1-12

1.2.5 Electrification Ratio

A national household electrification rate is 94.5% as of 2008.

1.2.6 EVN Operational Target

In consideration of the above mentioned power system situation, EVN has held up the operating target as

follows:

1) Ensuring the energy security for national development,

2) Implementing the roadmap for market driven tariff under the Government directions,

3) Gradual setting up the electric power market,

4) Carrying out the comprehensive program for investment, rehabilitation and upgrading of the rural and

mountainous power grids to reach the target that by 2020 most of the rural households will be accessible

to electricity as stipulated in the Decision 1855/QD-TTg (dated 27 December 2007) issued by the Prime

Minister.

According to the above-mentioned prime minister decision, the policies of the national energy development

strategy are:

1) To prioritize the implementation of the policy in assurance of nation energy security towards

synchronous development of various energy sources; to exploit and use domestic energy sources in an

economical manner; to reduce dependence on imported petroleum products; to export a rational quantity

of coal (in the immediate future, to reduce annual coal export); to connect regional energy system; to

expand petrol and oil reserve; and to combine energy security with assurance of defense and national

security,

2) To introduce the market mechanism of energy price,

3) To prioritize the development of new and renewable energy, bio-energy, and nuclear energy, to

encourage foreign investment,

4) Policy on encouraging the economical and efficient use of the energy must indentify specific

conservation requirements on sectors which consume a large volume of energy; to encourage the

application of energy-saving equipment and technologies,

5) Policy on environmental protection aims to ensure the harmony between energy exploitation and use

1-13

with environmental management.

1.2.7 Electricity Tariff

The electricity tariff, which is universal for the whole country, is shown in the category-wise in Table 1-2-6.

Table 1-2-6 EVN Electricity Tariff (effect from March 1, 2010)

No. Demand Classification Time Zone

Normal hour

Mon.-Sat. :

4:00 to 9:30

11:30 to 17:00

20:00 to 22:00

Sun :

4:00 to 22:00

Off-peak hour

22:00 to 4:00

Peak hour

Mon.-Sat. :

9:30 to 11:30

17:00 to 20:00

1 The retail price for manufacturing

unit VND VND VND

1.1 110 kV and more 898 496 1,758

1.2 From 22kV to less than 110 kV 935 518 1,825

1.3 From 6kV to less than 22 kV 986 556 1,885

1.4 Fess than 22 kV 1,023 589 1,938

2 The retail price for irrigation and a

drain pump

2.1 More than 6 kV 690 281 1,269

2.2 Less than 6 kV 717 292 1,331

3 Administration, non-business.

3.1 Hospital, school, nursery

more than 6 kV 1,009

less than 6 kV 1,063

3.2 Public lighting



3.3 Administration, non-business.



4 Enterprise unit

4.1 More than 22 kV 1,684 902 2,943

4.2 From 6kV to less than 22 kV 1,766 1,073 3,028

4.3 Less than 6 kV 1,846 1,065 3,193

5 Stepping retail price for residence

for the first 50 kWh 600

for 51-100 kWh/month 1,004





for more than 401 kWh/month 1,890

6 Wholesale price for rural area

1-14

6.1 Wholesale price for rural residence


for 51-100 kWh/month 753






6.2

Wholesale price for water pump for

irrigation and drainage at the total

meter

703

6.3 Wholesale price for other purposes at

the total meter 1,010

7 For collective zone and community

7.1 For collective zone and community

For city, country town :

a) The substation invested by the Buyer








b) The substation invested by the Seller








For town, suburban district :

a) The substation invested by the Buyer








b) The substation invested by the Seller








7.2 The wholesale price for other

purposes

1-15

7.2.1

City (except for apartment building,

new town, suburban town and town

(all voltage))

1,020

7.2.2 Apartment building and new town


from 6kV to 22 kV 1,687


8 The wholesale price for industrial

zone in 110-kV busbar

8.1 Transformer capacity 100MVA and

more 875 483 1,714

8.2 Transformer capacity 50MVA to less

than 100MVA 871 479 1,706

8.3 Transformer capacity less than 50MVA 859 473 1,686

Source: Received from EVN HCMC.

1.3 Situation of Project Area

The project area for this study is Phu Tho area of HCMC where 8.3% of Vietnamese population lives. Phu

Tho is located in the central part of the city and EVN proposed the area at the time of the first field survey.

The power company that supplies electric power to this area is EVN HCMC.

1.3.1 Situation of EVN HCMC

Many domestic and foreign companies is engaged in business in HCMC as a center of the Vietnam

economy, and it‟s electric power demand is large. The amount of electricity consumption in EVN HCMC

area occupies 18% of a national consumption in 2009. According to Vietnam household living standard

research results in 2008, the household electrification rate is 99.9% for the year 2008 since it is a big urban

area.

EVN HCMC is one of the five electric power distribution companies of the whole country which shares

from a 110-kV system to distribution voltage. It was established in 1976 and electric power is supplied to

24 districts of HCMC from 15 power distribution offices at the moment. Moreover, the major business is

supply and distribution of electricity up to 110 kV, electric power engineering (investigation, design, testing,

repair, manufacturing), and supply & transportation of electric item, consulting, electric power civil works,

information service, etc.

1-16

The outline of EVN HCMC is shown below. :

The number of employees (2009) 7,383 persons

The number of consumers, energy sales, the maximum demand, energy loss are as shown in Table

1-3-1.

Table 1-3-1 Outline of EVN HCMC

Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

The number

of consumers

(in 1000)

860 955 1,063 1,153 1,228 1,325 1,412 1,508 1,601 1,676

Energy Sales

(GWh)

5,621 6,480 7,498 8,362 9,166 9,850 10,727 11,560 12,365 13,262

Maximum

Demand

(MW)

1,051 1,254 1,374 1,506 1,676 1,692 1,889 2,047 2,178 2,245

Sales

(in million

VND)

4,553 5,313 6,378 7,889 8,721 9,388 10,300 12,347 13,436 15,821

Energy loss

(%)

11.16 10.44 10.10 8.51 8.29 7.28 7.21 7.07 6.18 6.03

Source: EVN HCMC Company Profile 2010

The organizational chart of EVN HCMC is shown in Fig. 1-3-1.

Although "Power Companies" (subsidiary) is described in the organizational chart, it was confirmed during

the site survey that each distribution office is still the same organization as EVN HCMC. Five to six of

these 15 offices will be scheduled to shift to the power distribution subsidiaries of self-support accounting

in 2011, and all the offices are scheduled to shift by 2015 through the enforcement period for two years

according to EVN HCMC.

1-17

Fig. 1-3-1 Organizational Chart of EVN HCMC


1-18

The financial situation of EVN HCMC is shown below.

Table 1-3-2 Financial situation of EVN HCMC (2008, 2009)

I. ASSET & CAPITAL 2008

in million

VND

2009

in Million

VND

1. Fixed Assets by end-of-year 6,410,626 7, 119,272

2. Capital for Business Activities

by end-of-year

2,034,178 1,987,985

3. Capital for basic construction investment

by end-of-year

57,033 57,033

II. EVN DEBT

1. Total debt 12,757,578 15,085,038

2. Paid total 12,688,626 14,925,690

III. RELATION WITH THE STATE BUDGET

Paid Total 186,750 229,783

1. VAT 187,510 180,127

2. Corporation income tax 41,917 31,956

3. Tax on capital 28,462 3,929

4. Import and Export Tax 5,417 3,294

5. House and Land Tax 10,876 9,895

6. Others 12,569 583

IV. BUSINESS RESULT

1. Gross turnover 13,828,693 16,324,711

2. Gross expenses 13,733,583 16,226,777

3. Profit before tax 95,109 97,935

V. PROFIT ALLOCATION

1. Gross profit 95,109 97,935

2. Corporate income tax 39,661 31,956

3. Profit after-tax 55,448 65,979

4. Receivables using paid capital 13,020 22,779

5. Retained profit 42,428 43,199

6. Established funds from retained profit 6,410,626 7,119,272


The daily load curve of the weekday in October, 2010 of EVN HCMC is shown in Fig. 1-3-2. As shown in

the load curve of HCMC, the demand is increasing even the morning hours just like afternoon‟s peak hours,

and totally forms daytime peak type load characteristics. Moreover, the daily load factor serves a high

number of about 80%.

1-19

Fig. 1-3-2 HCMC daily load curve (October 2010)

0.0

500.0

1,000.0

1,500.0

2,000.0

2,500.0

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24

Hour

Pow

er D

eman

d (M

W)

Source: SRLDC

1.3.2 Situation of Phu Tho Power Company

The outline of the Phu Tho Power Company selected as the project area is described below.

Electric power is supplied to 100,925 numbers of consumers at the Phu Tho Power Company as of the end

of August, 2010. The contract category-wise customers are as follows. :

Retail - Irrigation and drain pump: 1 house

Retail - Manufacturing industry: 4,474 houses

Company/enterprise: 8,109 houses

Retail - Residential: 87,255 houses

Others (except the above): 1,086 houses

Sum total: 100,925 houses

1-20

Further, energy sales (MWh) and sales income (million VND) are shown in Table 1-3-3.

Table 1-3-3 Energy Sales and Seles Income of Phu Tho Power Company

Energy Sales by Tariff Category

(MWh)

2007 2008 2009

Retail - Irrigation and a drain

pump

6 14 325

Retail - Manufacturing industry 147,393 138,368 130,203

Company/Enterprise 109,432 124,980 137,903

Retail – Residential 362,443 378,447 411,803

Others (except the above) 58,586 64,212 63,284

Total Energy Sales (MWh) 677,861 706,021 743,519

Sales income excluding VAT

(million VND)

798,541 853,104 981,223

Source: EVN HCMC data

According to the Phu Tho Power Company, the recovery rate of an electricity bill is about 90%.In a Phu

Tho Power Company, some digital meters have already been adopted as a watt hour meter, and the tariff

according to time zone is applied for them. This digital watt hour meter was introduced for the first time as

a pilot in 2003, and was introduced formally in 2005 thereafter. Further from now onward it is scheduled to

increase the digital type energy meters.

1.3.3 Existing Facilities and System of EVN HCMC

1) Power distribution system and facilities

The power distribution system of EVN HCMC uses the direct grounding method and its voltage levels

are 15kV and 22kV. The voltage level for all power distribution is planned to be increased to 22kV in

future. However, since HCMC has large scale distribution network,, it is assumed that complete

transition requires 10 years or more.

There are 3 types of transformers: indoor type, outdoor type, and kiosk type.

The heart of city and the suburbs use different types of overhead electric lines; i.e., 24kV XLPE made of

aluminum alloy for the heart of the city; and 3kV XLPE made of aluminum reinforced by steel for the

suburbs. Underground electric lines use 3-core XLPE.

The average line length of power distribution lines is about 5km per line and power distribution lines

are installed radially and have connected points.

Power distribution system and facilities include 630A and 800A Circuit Breaker (CB), Recloser (REC),

Disconnecting Switch (DS), Load Break Switch (LBS), and 100A and 200A fuse cutouts.

1-21

The models of typical overhead electric line and underground electric line are shown below:

Fig. 1-3-3 Model of typical overhead electric line

Source: Made by Study Team

Fig. 1-3-4 Model of typical underground electric line


FCB

110kV/15kV

transformer substation

Feeder

LBS

DS DS

Recloser DS DS DS

LBS

DS

DS DS

DT DT DT Always open Always open

Always open

Always open

FCB

110kV/15kV


Feeder

FCB

110kV/15kV


Feeder

To overhead line

LBS-OFF

DT

DT

DT

DT

DT

DT

DT

RMU

RMU

RMU

RMU

RMU

RMU

RMU

LBS-ON

LBS-ON

LBS-ON

LBS-ON

LBS-ON

LBS-ON

LBS-OFF

LBS-OFF

LBS-ON

LBS-ON

LBS-ON

LBS-ON

LBS-ON

Always open

Always open

Always open

FCB：Feeder Circuit Breaker

DS：Disconnecting Switch

LBS：Load Break Switch

DT：Distribution Transformer

1-22

Actual Operation Level of 15kV Feeder is shown in Table 1-3-4.

Number of 60% to 80% of rated load current occupies 50% and Number of 40% to 60% of rated load

current occupies 30%, so number of 40% to 80% of rated load current occupies 80% in all faults.

Table 1-3-4 Actual Operation Level of 15kV Feeder

% of rated load current Percentage(%)

More than 100% 0%

80% to 100% 5%

60% to 80% 50%

40% to 60% 30%

20% to 40% 10%

Less than 20% 5%

Source: Answer from EVN HCMC

2) Substation

Boundary between transmission and distribution company is 110kV in Vietnamese electric power

facilities. Then EVN HCMC as a distribution company owned 34 distribution substations of voltage

hierarchy 110kV/15kV. Typical single line diagram of distribution substation is shown Fig.1-3-5.

Typical distribution substation has a single bus-bar and 2 transformers. Characteristics of the circuit are

below.

(1) Distribution substation has 2 banks of main transformers. Typical capacity of main transformer is

63MVA. Connection of transformer is YYd connection.- it has a internal tertiary winding. Load

ratio tap-changer is installed in primary winding and it control secondary voltage automatically.

(2) Ground fault current of distribution line is so huge because 15kV winding is grounding directly to

the earth.

(3) Secondary winding is double face tap as 15kV and 22kV. Secondary voltage shall upgrade to 22kV

by future plan.

(4) Some substation has parallel capacitor banks. Those are directly connected to 15kV switch-gear

feeders.

1-23

Fig.1-3-5 single line diagram of typical distribution substation


3) SCADA

EVN HCMC uses SCADA by ABB company, which is installed in the load dispatch and communication

center. It remotely monitors 25 110kV/15kV transformer substations out of 37 transformer substations

in the district of EVN HCMC through optical communication network TM measurement and breaker

states). The SCADA remotely controls the 15kV power distribution line breaker for two 110kV/15kV

transformer substations (of the above-mentioned 25 substations).

Note that there are four 110kV/15kV transformer substations in the district controlled by Phu Tho Power

Company. They remote-monitor the open/close states of 15kV power distribution line breakers but no

remote control is provided.

110/15kV (22kV)

63MVA Tr.

110kV Bus

15kV Bus

Capacitor

1-24

Fig. 1-3-6 Conceptual diagram of SCADA operating in EVN HCMC


SCADA

110kV/15kV transformer substation





‥

‥

Transformer substation

Optical communication

network

No. 1

No. 2

No. 3

No. 4

No. 25

No. 37

In Phu Tho district

In EVN HCMC district

1-25

Photo 1-1 Load Dispatch and Communication Center

Source: Taken by Study Team

The photo on the upper left shows the load dispatch and communication center, the upper right shows

the monitoring/control room of SCADA in the 110kV/15kV transformer substation, the lower left shows

SCADA maintenance terminal and the optical transmission equipment maintenance terminal, and the

lower right shows SCADA monitoring/control terminal.

Since the SCADA allows the state of the entire power system to be checked easily and rapidly, a large-

scale power failure is restored rapidly by instruction (by phone) to maintenance staffs in the transformer

substation responsible for monitoring and control. In addition, new installation or addition in a

transformer substation requires data maintenance which is done once or more a month. Data

maintenance is mainly conducted for the RTU which is used by SCADA to communicate with each

transformer substation; i.e., in many cases, the maintenance is carried out to change the definition of

communication facility configuration such as transformer substation name, position of information of

feeder circuit breaker, and used line.

1-26

The photo on the left shows SCADA system configuration.

It consists of three engineering workstation servers and

operation terminal (two for monitoring and control; one for

maintenance). To improve the reliability of the engineering

workstation server for monitoring and control and LAN,

they adopt redundant configuration using hot standby. The

SCADA also includes the display panel, system timer, and

printer. Dedicated lines (one for normal use and one for

backup) for 155Mbps optical communication network

(Synchronous Digital Hierarchy) are used between the

SCADA and the 110kV/15kV transformer substation where

about 1,200bps is used by switching six channels.

In addition, each transformer substation has RTUs (RTU210/RTU/211 by ABB and their network

protocol is RP570/RP571) and transducer board by CEWE INSTRUMENT AB.

Fig. 1-3-7 Communication by SCADA


SCADA

Front end computer


RTU/transducer board







Photo 1-2 SCADA System Configuration


1-27

The photo on the left shows RTU and the transducer

installed in Hoa Hung transformer substation in the

district of Phu Tho Power Company, which are used

to send the information on the open/close state

(upward) of the feeder circuit breakers on five

circuits in the district of Phu Tho Power Company

and on seven circuits in other districts to SCADA.

Note that since ten years have elapsed after delivery

of the SCADA, it will be replaced in the next year

and at that timing, moved from the load dispatch and

communication center to a new building of EVN

HCMC "Green building".


Fig. 1-3-11 Configuration of optical communication network


Optical transmission equipment

(Load dispatch and communication center)

Optical communication network

Synchronous Digital Hierarchy

155Mbps


(110kV/15kV substation)








(110kV/15kV substation) Optical transmission equipment


Photo 1-3 RTU and the transducer

1-28

The load dispatch and communication center and 25

110kV/15kV transformer substations have the optical

transmission equipment (photo on the left), which

provides an environment for 155Mbps large-volume

high-speed optical communication network. Utilizing

this optical communication infrastructure, an optical

communication network environment between Phu Tho

Power Company and 110kV/15kV transformer

substation will be established.

Photo 1-4 Optical Transmission Equipment


4) Communication

EVN HCMC has its own optical fiber cable network connecting the head office, branch offices,

transformer substations, and related companies.

Photo 1-5 State of Communication Server Room in each office


Facility at Telecommunication & IT company Facility at EVN HCMC head office

1-29

Fig. 1-3-9 shows the conceptual diagram of the optical fiber cable network owned by EVN HCMC.

Fig. 1-3-9 Conceptual diagram of optical fiber cable network


The orange line indicates the optical fiber network. They connect EVN HCMC offices, substations, and

other major areas. The black line indicates the network that is utilized by SCADA for controlling and

monitoring. Such an optical fiber network is believed to have been established in the whole HCMC.

5) Solar Power Generation

Existing situations of solar power generation in EVN HCMC area are below.

-Case1-

For power supply at rural area without commercial power supply

(1) Report of site investigation

Place: Thieng Lieng island in Duen Hai Power Company area of EVN HCMC

(2) Object of installation

1-30

There is no power supply line from electric company in the island. Each house has photovoltaic cells

and lead batteries. And supply for part of the load of his house.

(3) Situation of installation

They bought and installed PV cells their own selves. They didn‟t take any support from government.

Capacity of PV cells are around 70-80W. Small capacity solar panels are installed independently.

Lead batteries are charged directly from PV cell. The installation places are roof top or on the

pole.(Photo 1-6,7) Storage energy is supply to part of the loads through simple inverter. Major loads

of each house are fluorescent light, television, radio, video recorder and fan(Photo 1-8). These loads

are connected to the batteries for unit of only lights or television. Time for using seems to be limited.

On the other hand they own engine generator in their community. It supplies electric power in night

time to every houses through the self owned distribution line. One village man who is electrical

engineer installed PV cells and connected cables(Photo 1-12). He also operates and maintains engine

generators.

An inhabitance said that these solar power systems have had no trouble during 15 years from

installed.

Although the team tried to confirm situation of the other islands, electric power company has no

information. It seemed to be situation of power supply might be almost same.

(4) Others

Solar power project provided by French government had been existed before. Its specification seems

to be almost same as the existing solar system installed by habitant. But now they are not on the

operation. And the team has not confirmed system.

EVN HCMC wasn‟t concerned with this project, so they don‟t know the actual situation of the

project. The project was provided to habitants directly by French government.

In addition to this, they have new project, 300W PV cells are provided to 210 houses of electricity

non-supply area in islands by government of HCMC will start in next month. Whole budget is

around 1MUS$.

1-31


Photo1-9 Circuit for Lighting by PV

Photo1-6 PV Panel on the roof

Photo1-10 Circuit for TV by PV

Switching by Dispatch Panel

Photo1-11 Lead Battery

Photo1-7 PV Panel on the pole

Photo1-8 Inside Situation of the Residence

Photo1-12 Private LV Feeder in the

Island

1-32

-Case2-

Solar power system connected to the grid in city

(1) Place

Tuan An Energy Joint – stock company.

The company products electric power material such as insulator, LBS or Disconnecting switch, and

renewable energy power such as solar or wind turbine etc.

Address: 71 Ten Lua Street Binh Tan district HCMC.

WEB site www.tunan.com

Counterpart: Deputy Director Mr.Chau , Vice Director Business Mr. Tuan


(2) Situation of installation of solar power panels.

Solar power panels have been installed on the roof of their headquarter building. (Photo 1-15)

Outline of facilities are below.

a. Total output is 8.4kW. This system is largest capacity in south region of Vietnam. The system

have been Installed in 2009. They have a extension plan to 12.6kW.

b. The manufacturer of solar panel is „Solar World‟ in USA.

c. System configuration is usually connected to the grid. And also battery can be charged by both

solar panel and commercial line. When commercial line is interrupted, the circuit is switched to

battery side, and operated independently. It is not sure that the system can apply reverse power

Photo 1-13 View of Headquarter office

of Tuan An Energy Joint

(PV panel on the roof-top)

Photo1-14 Major manufacture of Tuan

AN -except for PV

http://www.tunan.com/

1-33

flow or not. But it seems to be might possible to reverse power flow. The system diagram is

shown in Fig1-3-24. Different point of Japanese similar products is battery can be charged from

commercial line. The main purpose of this system is countermeasure for outage.

d. Lead battery is contained in the system (48V-1600Ah). Battery system is charged by solar power.

If it could not get solar radiation, charged by commercial line.

e. The controller for solar panels and battery charging is developed by cooperation with Vietnamese

Academy of science and technology and Solar lab – Institute of physics. (Photo1-18)

f. Solar panels were installed with 11.5 degree's slope. It is same as latitude of HCMC and frame is

constructed with simple structure by steel.

g. Major loads supplied by solar energy are computers in office.

(3) Solar power products.

The company develops and sells small scale solar power products. But they don‟t product of solar

power panels. They use solar power panels from USA, Germany, and China. They developed

controller of solar power and battery by themselves.

At first, this system was developed with technology of SMI in USA.

Outline of major product as follows.

a. Solar power with battery system(Photo 1-19)

This system is major products of their company of solar power for domestic market. System

configuration is similar to installed system on their company.

Output power is 2kW-3kW. 300sets of this system were sold in HCMC. And 100-150sets were

sold in the other region of Vietnam.

b. Grid connection type solar power system(Photo 1-20)

This system is for connected to grid without batteries. It is possible to allow reverse power flow.

They don't have sales experience of this system in Vietnam. But it already exported 300sets

system to Germany. Sales record performance is good, because of its reasonable price.

c. Others

Products of this company can connect to small wind or small hydro. (Each of those is connected

by direct current.) They exhibited a small wind turbine in their show room. Small wind is

1-34

manufactured by Sygnus Company in Singapore (Photo 1-21). And the other company‟s products

are introduced in their brochures. But in their opinion, small wind is not adequate to Vietnamese

wind condition.

(4) Present situation of grid connection type solar power

The major need of solar power in Vietnam is countermeasure for outage. Grid connection type solar

power without batteries is not adapted to their domestic market, because it doesn‟t use in the case of

outage.

In the EVN HCMC‟s opinion, grid connection type solar power is not installed in urban area. But

probably a lot of solar powers have already connected to the grid. Power Company may be difficult

to catch the present situation.

Even in the case of battery hybrid type, Vietnamese solar power system is directly connected to the

grid. When battery capacity is full and load is few, surplus electricity will flow to the line.

In this reason, in future amount of solar power will increase, it might be cause of voltage fluctuation.

Fig.1-3-10 Diagram of PV system installed at Tuan An


Commercial line

INV-CONV

Controller

Battery INV

DDCONV

PV panel

1-35


Photo1-15 PV panels Phot1-16 frame of panels

Photo1-17 Lead batteries Photo1-18 Controller for PV system

Photo1-19 Controller for hybrid

solar and battery

Photo1-20 Controller for grid

connection type PV

Photo1-21 Small wind

1-36

(Reference) Inspection of the construction fair in Vietnam

The team inspected the construction fair opened in Phu Tho Power Company area.

Relevant with renewable energy, solar power generation was not exhibited. Only solar thermal was

exhibited(Photo 1-22). Solar power generation is not general, but solar thermal is familiar in

Vietnam.


1.3.4 Existing Facilities and System of Phu Tho Power Company

1) Power distribution system and facilities

There are 19 circuits of 15kV power distribution line in the district of Phu Tho Power Company (12

overhead circuits, five underground circuits, and two overhead/underground circuits).

Photo1-22 Solar thermal panel

1-37

Table 1-3-5 15kV Power distribution line facilities in Phu Tho Power Company

Note: Connection point: Normally-open point in LBS and RMU


Photo 1-23 15kV node station


FEEDER DS LBS REC RMU TR Connection

point

(1) BINH THOI OH 4 3 1 40 1

(2) QUOC TOAN OH/UG 6 3 1 2 59 3

(3) PHU THO HOA OH 3 1 1 72

(4) MINH PHONG OH/UG 5 6 1 1 48

(5) VHOA LU UG 7 16

(6) QUAN Y OH 18 4 2 80 2

(7) BAC HAI OH 10 2 1 39 3

(8) SU VAN HANH OH 9 11 2 60

(9) VSI QUAN UG 7

(10) TRI PHUONG OH 18 3 1 58 1

(11) HUNG VOONG OH 18 4 1 86

(12) AN QUANG UG 6 20 1

(13) BA THANG HAI OH 19 6 2 65 3

(14) LU GIA OH 11 4 1 75 2

(15) HONG THAI OH 13 3 65 1

(16) HIEN THANH OH 13 3 1 80 2

(17) BACH KHOA UG 13

(18) PHU BINH OH 17 4 3 2 68

(19) LY VAN UG 12

TOTAL 164 57 18 18 963

1-38

The photo above shows the so-called 15kV node station which is the only facility in the district of Phu Tho

Power Company. It is installed about 3km away from 110kV/15kV Hoa Hung transformer substation and

about 1km away from Truong Dua transformer substation. Both transformer substations send power to

this 15kV node station through non-load underground lines and then, the power is distributed from here

through three underground circuits and one overhead circuit.

The photo on the left shows the recloser implemented

on 15kV overhead line and the district of Phu Tho

Power Company has 18 reclosers. If averaged, one

recloser is implemented per circuit and it is mounted

on the branch line and the basic line so that it is

suitable for urgent go-round tasks. The recloser is

shut down on detecting failure.

Photo 1-24 Recloser


Fig. 1-3-11 HIEN THANH overhead power line diagram


Recloser

110kV/15kV substation

DS

LBS

DS

DS DS

DS

DS DS

R

DS: Disconnecting switch

LBS: Load break switch

1-39

Photo1-25 Load Break Switch and Disconnecting Switch


The photo on the upper left shows a load break switch and SF6 gas is adopted as insulation. There are 57

load break switches on the basic line and branch lines and 18 load break switches on connection points,

which means about 5 load break switches are implemented per overhead circuit in the Phu Tho Power

Company area. The photo on the lower right shows the disconnecting switch. The Phu Tho Power

Company area has 164 disconnecting switches on the basic line, which means about 15 disconnecting

switches are implemented per overhead circuit. At the present, 15kV devices are implemented on the lines

in the Phu Tho Power Company area. However, since lines have been designed to boost to 22kV, the

devices are ready to be replaced with that of 22kV.

Photo1-26 RMU


1-40

The photo above shows the ring main unit by SIEMENS which supports up to 24kV and adopts SF6 gas as

insulation. Modifying the ring main units for a remote control environment would take a large cost.

Therefore, I believe the best way is to replace the device with remote-controllable automation device step

by step, taking their service life into consideration. The size of the kiosk door is about 2.5m × 2m, which is

large enough for the distribution device to go through. There are 18 ring main units in the Phu Tho Power

Company area.

The photo below shows the transformer and there are various types of it; e.g., installation-on-pole type,

floor setting type. Phu Tho Power Company area has about 963 transformers. They are insulated by oil

and no SF6 gas is used.

Photo1-27 Transformer room


2) Substation

There are 4 distribution substations of supplying to Phu Tho Power Company as a model project area.

The team surveyed typical 2 types of substation. One has outdoor type switchgear – Turong Dua

substation, and another has indoor Gas Insulated Switchgear (GIS) – Hoa Uvng substation.

Outline of each substation is below.

(1) Turong Dua distribution substation

It is a semi-outdoor type substation. Extra high voltage switchgears and main transformers were

installed outdoor, and MV switchgears were installed indoor.

Communication tower was situated in the yard. It is not sure that detail of the communication

system. (Antennas, looks like for mobile phone were installed.)(Photo1-30)

There was a transducer panel setting in the room, but not connected. All facilities in the substation

1-41

might be operated directly(Photo1-31).

Digital multi-relay systems have installed on the 15kV switchgears. Then it will be easy to get the

operational signal for CB, measuring data and some kind of status. These products are made by

ABB(Photo1-32).


Photo1-32 Communication Tower

Photo1-31 Transducer Photo1-32 Multi Relay

Photo1-28 View of Substation Photo1-29 Single line diagram of Substation

1-42

(2) Hoa Uvng distribution substation

It is also semi-outdoor type substation. Main transformers were installed outdoor. Extra high voltage

switchgears installed indoor are GIS and manufactured by Japanese manufacturer (TMT&D)

(Photo1-34). 15kV switchgears are installed indoor.

Digital multi-relay systems were also installed on the 15kV switchgear. These products were

manufactured by Alstom. It might be easy to get the various data from multi-relay to SCADA

(Photo1-35).

In the transformer substation, a capacitor is installed in the 15kV side bus. As for the protector of the

capacitor, it is thought that the incorporation to SCADA is possible relatively easily for the multi-

relay that is similar to the above(Photo1-36).


Photo1-33 View of

substation

Photo1-34 110kV GIS

Photo1-35 Multi Relay Photo1-36 Capacitor

1-43

3) Control center

Photo1-37 Annex of Phu Tho Power Company


The photo on the upper left shows the annex of Phu Tho Power Company where maintenance staffs for

power distribution lines wait on a 24-hour basis (15 staffs, 3 shifts).

The photo on the upper right shows the 3rd floor of the annex which is used as the space for staff to change

clothes, takes a rest or nap.

The photo on the middle right shows the 2nd floor of the annex, where the administrator of maintenance

department works.

The photo on the lower right shows the 1st floor of the annex which is used as the maintenance control

room. On the wall we see the underground electric line diagram and the overhead electric line diagram in

the district of Phu Tho Power Company and keys of the kiosk.

Since each floor has the size of only about 4m × 5m, it is difficult to install a set of the computer system for

DAS.

However, since the maintenance staffs for power distribution lines wait on a 24-hour basis in the annex and

for the sake of conducting the operation smoothly, the monitoring/control console for DAS should be

installed in the annex of Phu Tho Power Company.

1-44

Fig. 1-3-12 shows the current operation of 15kV power distribution line facilities and Fig.1-3-13 shows the

restoration procedure in case of an failure in a power distribution line.

Fig. 1-3-12 Operation tasks for 15kV power line facility

Fig. 1-3-13 Restoration procedure for 15kV power line failure


■ Staffs

About 10 persons (3 shifts)

■ Job

Visual monitoring of voltage/current on power line

Visual monitoring of feeder circuit breakers

Control of feeder circuit breakers

Management of voltage on power line

■ Staffs

About 15 persons (3 shifts)

■ Job

Open/close operation of switch by on-site worker

110/15kV substation

Phu Tho Power Company

Load dispatch and communication

center

■ Staffs

Operation: 2 persons, maintenance: 1 person

■ Job

Monitoring of feeder circuit breakers by SCADA

Telephone

Telephone

Line failure location

Telephone

■ Collection of information on feeder circuit breakers

and relay and communication

■ Notification of power failure

■ Instruction of switch operation

110/15kV substation


■ Notification of power failure

■ Manual open/close operation of switch

■ Line failure restoration

Wireless

1-45

Photo1-38 Main building of Phu Tho Power Company


The photo on the left is the main building of Phu Tho Power Company. Reading the meters is conducted

mainly by the client liaison on the 1st floor. But there is not enough space to install a set of the remote

meter reading system. However, the remote meter reading system should be installed on the 1st floor of the

main building of the Phu Tho Power Company for the sake of operation efficiency. The flow of meter

reading operation is shown in Fig. 1-3-14.

The meter is read with the staff from Phu Tho Power Company visiting a facility to read the meter visually

and input the value in a handy terminal. The data is transferred to and controlled centrally by the

Telecommunication & IT Company server. The meter is read basically once a month. The

Telecommunication & IT Company system is capable of making 100,000 bills a day.

1-46

Fig. 1-3-14 Flow of meter-reading operation


Office/office of

meter reader

Customer

Home

Telecommunication & IT Company

(Charge calculation, print bills)

ATM

Bank

ATM

ATM

ATM

Handy

terminal

Input device

Charge notification

1. Staff reads meter.

2. Staff reads power meter visually, enters the

amount of power in a terminal and prints charge

notification

3. Charge notification is

given to customer

4. Staff returns to office

to transfer data from

terminal to input device

8. Bill is given to customer

Bill

Payment

by ATM is

possible

5. Power usage data is

transferred

6. Receive power usage

data, charge calculation

and output bills

Bill

7. Bill is sent

to offices.

10. Payment-done

information

Charge

11. Payment-done

information is

recorded

Optical fiber

Back bone network 10Gbps

Branch circuit 10Gbps

Branch circuit network 10Gbps

Branch circuit

10Gbps

Optical fiber

9. Deposit if paid on receiving the bill

Optical fiber

Bank

1-47

4) Communication

The optical fiber network facility is installed on the 1st floor of Phu Tho Power Company. An

environment that enables communication with substations and other EVN HCMC offices is provided

from this facility.

Photo1-39 Optical Fiber Network Facility


1-48

5) Existing watt-hour meters and status of installation

The watt-hour meters used in the Phu Tho Power Company district comply with the international

standard and no special specification is adopted. The watt-hour meter is available in two types –

mechanical and electronic. The mechanical type is produced in Viet Nam and the electronic type meters

are imported. A new watt-hour meter will be available in Viet Nam after the 6-month inspection for

model approval by the government body.

The total number of watt-hour meters in the Phu Tho Power Company area and is shown in Table 1-3-6

and the price is shown in Table 1-3-7.

Table 1-3-6 Total number of watt-hour meters

Single-phase 3-phase

Mechanical Electronic Mechanical Electronic


area 89,471 1,804 6,138 3,317

Whole EVN HCMC 1,568,217 45,132 69,344 37,919

Source: EVN HCMC‟s data

Table1-3-7 Price of watt-hour meters


Photo1-40 Watt-hour meter


Single-phase 3-phase

Mechanical Electronic Mechanical Electronic

Price 10 US$ 19.8 US$ 30 US$ 105.85 US$

Single phase watt-hour meter

Three phase watt-hour meter

1-49

Watt-hour meters in the Phu Tho Power Company area are classified in three types as shown in Table 1-

3-8 (1) A meter without Current Transformer (CT) and Voltage Transformer (VT), (2) A meter with CT

and without VT, (3) A meter with CT and VT

Table 1-3-8 Details of watt-hour meters installed in the Phu Tho Power Company area

Source: Phu Tho Power Company‟s data

Watt-hour meters are installed indoors in most houses. But more meters have been installed outside

(outer wall or eaves) over the last few years. In either case, the meters are stored in the meter box.

1.3.5 Situation of Outage and Distribution Loss

1) Situation of EVN HCMC

Annual Outage Duration per Customer separating Distribution Company‟s Facilities and Outside Factor

by is shown in Fig. 1-3-14.

Distribution Company‟s Facilities and Outside Factors have comparable outage duration.

Fig.1-3-14 Annual Outage Duration per Customer (hours)


Causes of power outage in 15kV Feeder is shown in Fig. 1-3-15.

The outage is occurred by a variety of causes, such as switching equipment, animal and lightning surge.

Direct connection (no CT) With CT and without VT With CT and VT

Rated voltage Quantity Rated voltage Quantity Rated voltage Quantity

Single 2-wire 220V 91,688 - 0 - 0

3-phase 4-wire 220V 8,786

0.5kV 18

15kV 57 0.6kV 109

15kV 3

22kV 69

Total 100,474 199 57

Outside Factors 6.23

Distribution Company's Facilities

6.21

1-50

Fig.1-3-15 Causes of power outage in 15kV Feeder


Annual trend of distribution loss in the last five years is shown in Table 1-3-9.

Since 2005, the loss has been decreased annually, so in 2009 is about 6%.

Table 1-3-9 Annual trend of distribution loss

Distribution Loss Unit 2005 2006 2007 2008 2009

Total % 7.28 7.21 7.07 6.18 6.03


Others 34.1%

Lightning Surge 13.1% LBS/DS/FCO/LBFCO

32.7%

Animal 15.7%

Insulation 1.2%

Over load 0.0%

Tree 3.2%

2-1

Chapter 2 Study Methodology

2.1 Overview of Study

The following survey has been implemented in order to realize the smart grid project in Vietnam.

Survey for power supply in EVN, especially for distribution

Survey for EVN HCMC as implementing organization and for Phu Tho Power Company as model

area

Survey for the distribution network, existing facilities and systems

Survey for problems to realize the smart grid project

Survey for the proposed system configuration, the scope, the necessary investment and the schedule

etc

Economical evaluation including FIRR and EIRR

Survey for social and environmental condition

Survey for preparation of fund such as Bank loan and ODA loan etc

2.2 Study Methodology and Team Organization

2.2.1 Study Methodology

1) Survey of related documents in advance

2) Preparation of Questionnaire and site survey based on the questionnaire

3) Analysis of documents received in site

4) Hearing and meeting for related organization in Vietnam

5) Hold the workshop

Implementation of presentation in 1st survey in order to explain the survey purpose and contents

Explanation of survey results in 3rd survey in order to advance the smart grid project

6) Preparation of report for related organization

2-2

2.2.2 Team Organization

The survey team is organized as follows.

2.2.3 Counterpart

Counterpart of this survey is as follows.

EVN HCMC International Cooperation Department

Title: Director

2.3 Survey schedule

The overview of survey schedule is described in the following table.

Table 2-3-1 Survey schedule

2010

Jul

2010

Aug

2010

Sep

2010

Oct

2010

Nov

2010

Dec

2011

Jan

2011

Feb

Site Survey

Works in Japan

Project manager

TEPSCO / FUJISAWA

Economic Expert

TEPSCO / SADO

Local in Vietnam

COCOMO / HIEU

Distribution Expert

TEPSCO / HAYASHI

Environment & Social Expert

OPMAC / Fujiwara

Local in Vietnam

COCOMO / HAI

Solar Power Expert

TEPSCO / TSUJITA

DAS/AMR Expert

TEPSCO / TADA

2-3

The site survey was implemented as follows.

1) 1st site survey: from August 29 to September 22 in 2010

2010/8/30: Meeting with EVN

(Mr. Dang Hoang An Vice president)

2010//8/30: Meeting with MPI

(Mr. Ho Quang Minh Director General / Foreign Economic relations Department,

Mr. Luong Van Ket Deputy Director / Department of Industrial Economy)

2010/9/7: Meeting with EVN HCMC

(Mr. Tang Nai Tong Deputy General Director of Telecommunication and Information

Technology)

2010/9/7: Presentation in EVN HCMC (Attendant: 34 persons)

2010/9/7: Meeting with EVN HCMC and Phu Tho Power Company

to 9/22 (Mr. Nguyen Ngoc Tuyen Director / International Relation Department etc)

2) 2nd site survey: from November 16 to December 3 in 2010

2010/11/19: Meeting with MOIT

(Mr. Le Tuan Phong, Vice Director / Energy Department,

Mr. Nuyen The Vinh / Expert of Energy Department)

2010/11/23: Meeting with VEA

(Mr. Mai Thanh Dung Director / Department of Environmental Appraisal and Impact

Assessment,

Mr. Nguyen Anh Dung Official / International Cooperation & Science Technology,

Ms. Pham Thanh Tu Official / International Cooperation & Science Technology,

Mr. Ngo Hong Phuong Official / Department of Environmental Appraisal and Impact

Assessment)

2010/11/23: Meeting with EVN

(Mr. Tran Viet Anh Ph.D Deputy Director / International relation Dept etc)

2010/11/24: Meeting with EVN HCMC and Phu Tho Power Company

to 12/2 (Mr. Nguyen Ngoc Tuyen Director / International Relation Department,

Mr. Vu The Cuong Director / Engineering Department,

Mr. Nguyen Dang Viet Cuong Deputy Director / Materials & Import-Export

Department etc)

2-4

3) 3rd site survey: from January 16 to 25 in 2011

2011/1/19: Workshop in EVN

(MOIT Mr. Son Director, Mr. Ha Deputy Director

MPI Mr. Ket Deputy Director Other attendants: 38 persons)

2011/1/21: Workshop in EVN HCMC

(EVN HCMC Mr. Bao Deputy General Director Other attendants: 42 persons)

3-1

Chapter 3 Justification, Objectives and Technical

Feasibility of the Project

3.1 Background of Project and Necessity

According to MPI, the important policy for power sector in Vietnam is to solve the lacked power, to

improve the reliability and to accelerate the energy efficiency.

This project is suitable for the policy as follows.

1) Peak-cut by DR and application of renewable energy contribute to solve the lacked power.

2) DAS can reduce the outage duration when faults happen, so that the reliability of power supply is

improved.

3) Reduction of technical loss by DAS and non-technical loss by AMR, and Energy management by EMS

can accelerate the energy efficiency.

3.1.1 Scope of Project

Scope of project is as follows.

Pho Tho Power Company (District 10 and District 11)

All of customers such as shop, factory, hospital, residential customer etc

Project consists of DAS, AMR, DR and Solar power as model.

3.1.2 Current Analysis and Future Prospect

GDP in Vietnam is anticipated that the growth rate from 7% to 8% will continue up to 2020. According to

IE report based on the GDP, the growth rate of power consumption is anticipated to continue the growth

rate of 12.7% for every year up to 2030.

Besides, the power generator had been constructed with growth rate of 13.7% for every year up to 2009.

The power in Vietnam has been lacked under the maintenance and trouble even though the generators have

been constructed. Therefore, Vietnam will promote plans to increase the power from 160 GW in 2009 to

3-2

430 GW in 2015. In addition, the tariff will be increase in order to bring the foreign investment to IPP in

Vietnam which consists of approximately 30% in power generators. Nuclear power decided to be adopted

but the operation will be implemented from 2020 or over, so that the lack of power up to 2020 should be

strongly considered.

The Government of Vietnam is also promoting power consumption control at the peak hours by energy

efficiency in parallel. "Law No.50/2010/GH12 on economical and efficient use of energy" (Energy

efficiency law) passed through the National Assembly on June 17, 2010, and was enforced on January 1,

2011. This energy efficiency law consists of all the 12 chapters and 48 articles. The scope has specified

policies, measures and right, duty, and responsibility of organization, household, and individual which

promote economical and efficient use of energy. In this law, appointment of important entrepreneur with

large energy consumption, obligation of posting an energy manager to an important entrepreneur, an energy

labeling system, incentives, etc. are specified. Moreover, for renewable energy, it is pointed that suitable

renewal energy available in Vietnam is developed. Moreover, priority is given to rational development of

clean energy technology, and it is also setting to raise use rates of renewal energy to one of the energy

strategies. The above mentioned incentive covers financial support for the project which promotes

economical and efficient use of energy, incentive to companies and individuals who produce energy-

efficient products, and incentives to import duty in the case of importing energy-efficient products which

are not available domestically, etc.

If this project will not be implemented, a lot of outage by the lack of power and by faults will occur. So, the

economical growth of Vietnam and the business of Japanese company will become worse year by year.

3.1.3 Advantage by Project

The implementation of this project can solve the shortage of power and improve the reliability of power

supply, so that this project will contribute to develop Vietnam society with drawing foreign enterprise and

capital. Furthermore, this project will contribute to improve the global warming due to effects of energy

efficiency. This project also apply for Information Communication Technology (ICT), so that the skill of

Vietnam engineer will be advanced through the implementation of this project.

There are mainly five economical benefits as follows.

Technical loss reduction with improvement of load unbalance by DAS

Non-technical loss reduction by AMR including smart meter

Reduction of outage duration by DAS

Effective construction of Substations by DAS

Effective construction of Power Generators by DR

1) Technical loss reduction with improvement of load unbalance by DAS

3-3

DAS can improve the load balance of feeder by moving overload section to light load feeder.

The loss of MV feeder can be reduced around 32% based on the following example calculation.

<Example Calculation<

The effect of DAS on loss reduction could be substantial .Its value depends on the value and distribution of

loads, network parameters and network configuration before applying DAS. An example based on some

assumptions is given in order to describe the effect of DAS.

Assumptions:

(1) Rated current of each feeder =I

(2) Value of load at each node=0.1I

(3) Resistance between sections is equal having value equals R

Fig 3-1-1 Improvement of Load unbalance by DAS

<Before application of DAS>

Total losses = (0.4I)2 .R+(0.3I)

2.R+(0.2I)

2.R+(0.1I)

2.R+

(1.0I)2.R+(0.9I)

2.R+(0.8 I)

2.R+……+(0.1I)

2.R

= 4.15 I2.R

3-4

<After installation of DAS>


Total losses = 2((0.7I)2 .R+(0.6I)

2.R +……+(0.1I)2.R)

= 2.80 I2.R

Effect of DAS = (4.15-2.80) *(100)/(4.15 )

= 32.5%

The technical loss of EVN HCMC is around 6.03% and the MV technical loss is around 1.72%, so that the

following technical loss (0.56%) can be reduced by DAS.

1.72% x 0.325 = 0.56%

2) Non-technical loss reduction by AMR including smart meter

Non technical losses can be improved by AMR because Smart meter in AMR can monitor theft

action/operation. In case that these projects can cover whole area in model zone, the non technical loss

by Meter problem and theft can be reduced as shown in the following Tables.

< In case of theft problem >

Smart Meter can detect the open of the cover for theft or manipulation and instantaneously drop the supply

voltage by remote control, so that non-technical loss can be reduced.

< In case of Meter problem >

Performance of electrical type for Smart Meter is much better compared with existing mechanical type. In

addition, AMR system can detect the non performance meters when they don’t reply response, so that the

3-5

loss by non performing meter can be reduced.

Mistake of the meter reader can be improved by auto meter reading using computer and electrical devices

in Smart meter.

Table 3-1-1 Effect for reduction of non-technical loss

Non-technical losses

(a)Current loss in

model divisions

(by Indian case)

(b) Phu Tho

Power

Company

(a) x 2.43/9.0

(b)Reduction

by AMR

Target in model

divisions

Meter

Non performing meter 0.47 0.13 0.13

(100%) *1

0

Under performing meter

0.28 0.08 0.00

(0%) *2

0.08

Defects of circuitry in CT/PT

1.33 0.36 0.00

(0%) *3

0.36

Mistake of meter reader

2.37 0.64 0.64

(100%) *4

0

Theft

Pilferage by manipulation of meters

0.47 0.13 0.13

(100%) *5

0

Energy theft by direct tapping

2.37 0.64 0.00

(0%) *6

0.64

Direct connection without meters

1.7 0.46 0.23

(50%) *7

0.23

Total Non-technical losses 9 % 2.43% 1.13 %

(46%)

1.31%

*1: Non performing meter can be detected when Smart Meter dose not respond.

*2: Additional solution is required for this kind of loss reduction.


*4: Meter is correctly read by system without human errors.

*5: Manipulation of meter can be detected by the opening/closing sensor of meter cover.


*7: This type of theft can possibly be detected by comparing electricity amount data between the meter in

RTU of DAS and Smart meters. However the accuracy of this theft detection would be as low as 50%.


The current non-technical loss in Phu Tho Power Company area is 2.43% and can be expected to improve

up to 1.13% by promoting this project.

3) Reduction of outage duration by DAS

<Modeling of Reduction of Outage Duration>

Generally, outage duration has various reasons and various restoration time each and all. To simplify the

outage duration mechanism, all MV feeder fault including Distribution Transformer (DT) fault is

represented by the following models (before and after model) as shown in Fig. 3-1-2.

3-6

(1)Restoration Model of 15 kV OH Line before DAS

The following model shows the standard configuration of MV OH line before DAS. In case that a

fault happens at the third section in feeder, procedure of outage restoration and duration of outage in

each section can be graphically indicated as follows. Total duration for complete restoration is

estimated at 170 minutes in all sections.

Fig. 3-1-2 Restoration Model of 15KV OH Line before DAS

CB

2 nd Sec.

3 rd Sec.

4

th

Sec.

No. 1

No. 2

No. 3

No. 4

No. 5

No. 6

No. 7

No. 8

No. 9

No. 10

60

120

180

0 [Min.]

1

st

Sec.

1

st

Section

2

nd

Section

3

rd

Section

4

th Section

NO

3-7

No Affairs Elapsed Time (Minutes)

1 Circuit Breaker at 110kV/15kV s/s trip 0 -

2 Notice from Substation to Phu To Office by phone 5 (+5)

3 Staffs at “Unit” are organized and go to the site 25 (+20)

4 Finding the faulty section to isolate 55 (+30)

5 Isolate the faulty section to restore 60 (+5)

6 Finding the faulty point to restore 75 (+15)

7 Repairing the faulty point 135 (+60)

8 Inspect the repairing work 145 (+10)

9 Trial charge to check the condition of faulty point 150 (+5)

10 Commercial charge 170 (+20)


(2) Restoration Model of MV OH Line after DAS

The following model in Fig. 3-1-3 shows the standard configuration of MV OH line after DAS

introduction. In case that a fault happens at the third section in the Distribution Line, procedure of

outage restoration and duration of outage in each section can be indicated graphically as follows. Total

duration by complete restoration is estimated at 125 minutes in the fault section. The remaining

healthy sections can be restored within 5 minutes.

As for underground network, the system configuration using OH LBS for DAS is similar as OH

network, so the effects by DAS is assumed to be equal to the OH restoration procedure.

3-8

Fig. 3-1-3 Restoration Model of 15 kV OH Line after DAS

Affairs Elapsed Time (Minutes)

1 Circuit Breaker at 110kV/15kV s/s trip 0 -

2 DAS detects the fault, isolates the faulty section and makes changeover procedure

5 (+5)

3 Staffs at “Unit” are organized and go to the site 15 (+10)

4 Finding the faulty point to restore 30 (+15)

5 Repairing the faulty point 90 (+60)

6 Inspect the repairing work 100 (+10)

7 Trial charge to check the condition of faulty point 105 (+5)

8 Commercial charge 125 (+20)


(3) Restoration Model of MV UG Line after DAS

As for MV UG line, the network topology is similar as OH network as shown in Fig 3-1-4, so that the

reduction of outage duration is assumed the same as the effect of OH network.

CB

1st

Section

2nd

Section

3rd

Section

4th

Section

60 120 180 [Min.]

2nd

Sec.

3rd

4th Sec.

No. 1

No. 2

No. 3

No. 5

No. 6

No. 7

No. 8

0

No. 4

1st Sec.

Sec.

3-9

Interrupted Customers Hours

= (Average Outage Duration of Each Customer) x (Total No. of Customers)

= (Average Outage Duration of One Feeder) x (No. of Feeders) x (Average Customers of One Feeder)

Total No. of Customers = No. of Feeders x Average Customers of One Feeder

∴ Average Outage Duration of Each Customer = Average Outage Duration of One Feeder

<Reduction of Outage Duration in MV Feeder and DT>

Based on the reduction model of MV feeder fault including DT fault, Average Outage Duration of

One Feeder can be decreased to 20.6% from original outage duration as calculated below.

Here, reduction of Average Outage Duration of One Feeder is converted to reduction of Average

Outage Duration of Each Customer at the equal value as explained below.

This means that Average Outage Duration of Each Customer caused by also decreases to 20.6% from

the original outage duration by introduction of DAS.

In other words, Average Outage Duration of Each Customer after installation of DAS will be reduced

with 296 minutes out of original outage duration [=373 minutes x( (100%-20.6%)/100)] in EVN

HCMC.

Fig. 3-1-4 15kV Underground network applied DAS


RMU (Kiosk)

Automatic LBS (Closed state)

Automatic LBS (Open state)

In case of OH/UG fault, Average Outage Duration of One Feeder (OH/UG) is,

170 minutes → 35.0 minutes (= (125+5+5+5)/4)

Weighted Average Outage Duration of One Feeder (mixed) is,

(35.0/170)x100% = 20.6%

3-10

4) Effective construction of Substations by DAS

DAS can quickly switch a lot of loads of distribution feeder when bank fault in substation happens.

Currently, EVN HCMC adopts maximum 75% operation of rated capacity, allowing 130% (2H) of rated

capacity in emergency.

DAS allows to raise the maximum operation level by quickly switching the loads of the fault bank.

Overload allowance is not considered in the raised maximum operation level because it normally takes

less than few hours for repairing the bank accident.

By raising maximum operation level of bank of substation, average operation level can also be raised.

As a result, new construction of substation can be saved by rising average operation level. After

installation of DAS, maximum 83% of rated capacity can be allowed as explained in Fig 3-1-5.

Fig. 3-1-5 Explanation of raising operation level of substation

While all banks operate at P% to rated capacity, a bank fault occurs at 4B.

Load of 4B can switch to other 5 banks by means of automatic load

switching of DAS in distribution feeder side.

Total (500% - 5P%) can be switched (P ≦ 500 – 5P)

Maximum operation level can raise to 83% (P=500/6).

5) Effective construction of Power Generators by DR

The peak-cut in peak load is effective to solve the lacked power and save the investment instead of the

construction of Power generations.

The controlled customer load shall be considered to be cut off without inconvenience and is proposed as

follows.

Unnecessary load like A/C is cut off in large customer such as hospital / shop / factory etc.

All of power is cut off in residential customer.

When DAS with EMS connected to SCADA forecast that the consumption surpasses the generator

capacity, DR can switch off the controllable load during 0.5 hour through smart meter. In case that the

4B

C Substation B Substation

3B

A Substation

2B 1B 5B 6B

100-P 200-2P 300-3P 100-P 200-2P

3-11

peak load of more than the generator capacity is anticipated to continue after the control of 0.5 hour, DR

also switches off the other controllable load in turn. However, if the customers want to recover the

power, the customers can get the power by manual operation of smart meter.

Peak-cut by DR becomes more effective because the manual operation decreases due to expensive cost,

if the tariff on peak load will be set up higher. In case of Vietnam, a part of customer’s units such as

enterprise already have adopted the difference tariff between peak and off-peak load but residential

customers keep the same tariff regardless of peak load. In case of enterprise unit (6 to 22kV customers),

the tariff on peak load is of 3,028 VND/kWh and the tariff on off-peak load is of 1,073 VND/kWh, so

that the difference between peak and off-peak tariff is around 3 times. In order to facilitate the effect of

DR, it is expected that the adopted difference will be expanded more and the difference tariff on the

residential customer will be applied.

In case the DR is applied for Phu Tho Power Company, the cost benefits will be calculated based on the

following conditions.

The consumption of A/C load is normally from 0.5 kW to 2 kW, so the average is around 1 kW. The

customer consumption in peak load is around 3 kW as assumption based on A/C load.

The consumption of large customer is around 30 kW as assumption.

The number of customer in Phu Tho area is approximately 100,000. → Normal customer: 90,000

Large customer: 8,000

(3kW x 90,000 + 30kW x 8,000) x 1/2 = 255MW

Construction of power generator of 255MW can be reduced by DR. Gas turbine generator is normally

used for the peak load, so that the effect of DR on 255MW is calculated as follows.

Construction cost: 380 US$/kW (Construction cost of Gas Turbine) x 255 MW = 97 MUS$

Fuel cost: 255MW x 2H x 40 day x 20 years x 0.15US$/kWh = 61 MUS$

(Present fuel cost is around 0.07 US$/kWh. → 0.15 US$/kWh: Average for 20 years)

Cost of Smart Meter is around 20 MUS$.

The cost of 138MUS$ (= 97 + 61 - 20) as EVN can be saved by DR in Phu Tho Power Company.

3.1.4 Comparison between the Proposed Project and Other Method

As for solution of the lacked power, there are the constructions of power generators instead of this proposed

project.

3-12

Existing plan for construction of hydraulic power generator are as follows.

Existing hydraulic power generator is occupied with 35% of generator capacity in Vietnam.

Northern area has been constructed with Lai Chau, Ban Chat and Huei Quang after Son La project.

Central area has been completed with Sesan and Srepok river projects.

Southern are has been planning with Dong Nai river project.

However, the construction plans of hydraulic power generators have not been advanced smoothly due to

problems such as habitant movement etc, so that the hydraulic generator can not be expected to cover the

future consumption with high growth.

Peak consumption in 2020 will be increased and be reached to around 52 GW, so that new power plants of

35 GW are needed up to 2020.

As for Coal fired thermal power plants, the development with 35,000 MW needs to provide 100 million

tons of coal per year while the output of maximum coal mining reached about 70 million tons per year.

As for gas and oil fired thermal power plants, the construction is normally slow and the energy source in

thermal power projects causes green house gas problem.

If nuclear power plant meets the schedule of the Master Plan VI, the first plant will be commissioned in

2020.

As mentioned above, the shortage of power in Vietnam is serious up to 2020 especially and the

constructions of current and fossil power plants can not be expected to solve the problems. Therefore, it is

necessary to accelerate the application of renewable energy and advance the energy efficiency in parallel.

Regarding renewable energy, wind power / biomass / geothermal / small hydropower / Solar are considered

as the renewable energy in Vietnam and the potential reported by IE is as follows.

Wind Power: 1,800 MW

Biomass energy: 150 MW

Geothermal energy: 340 MW

Small hydropower: 4,000 MW

Solar energy: 4-5 kWh/m2

Small hydropower has occurred damages by flood during typhoon etc, so that the additional construction

will be difficult by objections of inhabitants. The capacity of Biomass and Geo thermal energy is not so

large. Therefore, Wind power and Solar energy will be expected to cover the increasing consumption in

Vietnam.

Regarding countermeasure of the peak load, it is necessary to reduce the peak load as energy efficiency in

3-13

parallel of power plant construction. There are Peak-cut and Peak-shift as the method of peak reduction.

Peak-shift means to restrain the consumption of large customers by asking the saving and to shift the load

by changing the working time / day. Moreover, normal customers will save the consumption for peak time

by themselves due to the display on smart meter. This method is effective in developed countries because

the outage for the shortage of power is not allowed but the method is not effective in developing countries

such as Vietnam for at least 10 years. The reasons are as follows.

Cost-up of smart meter with display → Huge investment

It can not be expected to switch off by the customer’s own judge.

The developing countries can easily implement the outage for peak load.

Peak-cut means to control the customer load such as A/C etc remotely, so that the peak load can be saved.

The investment is much smaller than the construction of power generation. Furthermore, as the peak-cut

can save the construction of power generations, the emission of greenhouse gas by the power generations

can be saved. In order to realize the peak-cut, the smart meter has to be installed to all of customers and the

investment is large. However, the smart meter can be applied for AMR, so that the effectiveness of the

investment becomes more reasonable.

3-14

3.2 Analysis Needed for Decision of Project Contents

3.2.1 Demand Forecast

Although electricity demand forecast of whole Vietnam is described in Chapter 1, power demand forecast

of HCMC where the Project region is included and its preconditions and method are described herein.

According to EVN, the electricity demand track record in 2000 to 2009 of HCMC which can be set is as

follows.

Table 3-2-1 Demand track record of EVN HCMC

Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009

Electric

energy sales

(GWh)

5,621 6,480 7,498 8,362 9,166 9,850 10,727 11,560 12,365 13,262

Increase rate

(%/year)

- 15.3 15.7 11.5 9.6 7.5 8.9 7.8 7.0 7.3

Maximum

Power

(MW)

1,051 1,254 1,374 1,506 1,676 1,692 1,889 2,047 2,178 2,245

Increase rate

(%/ year)

- 19.3 9.6 9.6 11.3 1.0 11.6 8.4 6.4 3.1


According to IE, the power demand forecast by 2020 of HCMC is as follows.

Table 3-2-2 Demand Forecast of EVN HCMC

Year 2010 2015 2020

Electric energy Sales (GWh) 15,409 26,755 42,931

Increase rate (%/ year) - 11.7 9.9

Maximum Power (MW) 2,600 4,535 7,269

Increase rate (%/year) - 11.8 9.9

Source: IE

The track record (2000-2009) of the maximum power demand of the above-mentioned HCMC and forecast

(2010-2020) are shown in Fig. 3-2-1.

3-15

Fig.3-2-1 Max Power Demand Forecast of HCMC (2000 – 2020)

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Year

Max

Dem

and

(MW

)

Source: Created based on IE and EVN data.

According to the power demand forecast, it is assumed that the maximum power demand (MW) will

increase to about twice in 2015 and 3.2 times in 2020 compared with that of 2009.

According to the IE, the demand forecast of Vietnam is prepared considering GDP growth, population

increase, energy saving, a crewed oil price, and an electricity bill, etc. by multi-regression.

For example, the GDP growth rates are assumed as shown in Table 3-2-3.

Table 3-2-3 Assumed value of GDP growth rate (2011- 2030)

Year 2011-2015 2016-2020 2021-2030

GDP growth rate (%) 7.5 8.0 7.83

Source: IE

Moreover, the population increase is assumed as shown in Table 3-2-4.

Table 3-2-4 Assumed value of Population Increase (2009- 2030)

Year 2009 2010 2015 2020 2030

Population (1,000 people) 87,093 88,038 92,499 97,187 102,421

Source: IE

Furthermore, the power-saving effect by the spread of energy conservation is assumed, for every field and

period respectively, as an average of 1-3 %.

3-16

3.2.2 Issue and Analysis of Project

Issue and analysis of project are as follows.

1) Peak-cut by DR

EVN has already implemented the outage for peak load, so that the peak-cut will not occur problems of

customers. However, customer‟s dissatisfactions should be considered. Furthermore, it is necessary to

issue the restriction of low and the incentive for acceleration.

2) Solar Power

Cost of solar power is expensive and the purchase tariff of EVN is inexpensive, so that the solar power

is not almost used in city areas except island etc. In order to accelerate, the support of government in

Vietnam is needed.

3) Shortage of power

When the peak load is anticipated to exceed the power supply, the planned outage will be occurred by

EVN. In case of EVN HCMC, the planned outage is around 6 hours per year. The shortage of power is

serious, so the countermeasure is highly required.

4) MV of distribution feeder

EVN has a policy of MV which will change from 10 / 12.7 / 15 kV to 22kV. However, the investment

for the exchange is huge, so that the 22 kV MV feeder is limited for small area. In case of Phu Tho

Power Company, there are no 22 kV feeders. In this condition, the equipment for MV feeder shall be

issued which voltage this project will apply.

5) Communication method

Communication method is important for investment and technical solution. EVN HCMC has already

installed Fiber Optic in city area and there is EVN Telecom as subsidiary company of EVN. Therefore, the

Fiber Optic can be utilized as backbone network of this project. As for last one mile communication for all

of customers, the installation of Fiber optic is limited, so that the communication method for last one mile

shall be issued.

3-17

3.2.3 Technical Analysis

1) Analysis of communication method

The communication network of this smart grid consists of two networks – back-bone network and last

one mile network.

The analysis of the communication method adopted in the two networks is as follows:

(1) Back-bone network

The data between the control center and Master Remote Terminal Unit (M-RTU) of a substation,

and between the M-RTU and feeder (MV) RTU are sent and received through the back-bone

network.

The back-bone network must enable high speed, large capacity transmission.

There are several options for the back-bone network, which are compared in Table 3-2-5.

Table 3-2-5 Comparison of Back-bone Communication (X < △ < ○ < ◎ Good)

L-PLC (B-PLC)* UHF / VHF GPRS (GSM) Fiber Optics

Reliability △ (X) △ ○ ◎ Speed X (○) △ ○ ◎

Security ○ (○) ○ △ ◎ System Expansion X (○) △ X ◎ New Business X (○) X X ◎ Initial Cost ○ (○) ○ ◎ ○ Connection Cost (Maintenance) ◎ (◎) ◎ X ◎

*L-PLC: Low speed PLC, B-PLC: Broad band PLC


Power Line Carrier (PLC) and UHF/VHF are not suitable for the back-bone network for their low

reliability and speed.

GPRS is not suitable because of its security problem in the public network. The cost could be high

to extend the DAS system and connect the network to a new system Home Energy Management

System (HEMS). In addition, it is difficult for GPRS to upgrade the lines to handle the increased

volume of DAS and HEMS network data.

This means to ask cell-phone companies, which control the GPRS, to bear the financial burden

(facility investment).

3-18

The fiber optics communication is the most suitable of the four options but the initial installation

cost is high.

However, since EVN HCMC has already established a fiber optics network in HCMC, the initial

cost could be kept low.

Therefore, the fiber optics communication, which allows high speed and large capacity transmission

as well as stable communication, is the best for the back-bone network.

(2) Last one mile network

The data between the smart meter and RTU or Concentrator are sent and received through the last

one mile communication network.

The last one mile communication network requires transmission reliability and must be built at low

cost.

It is important that the cost for smart meters must be low because they are installed in a large

number for customers.

There are several options for the last one mile communication network, which are compared in

Table 3-2-6.

Table 3-2-6 Comparison of Last One Mile Communication

PLC* UHF / VHF GPRS (GSM) ZigBee etc. Fiber Optics

Reliability △ (X) △ ○ ○ ◎ Speed X (○) △ ○ ○ ◎ Security ○ (○) ○ △ ○ ◎ System Expansion X (○) △ △ ○ ◎ New Business X (○) X X △ ◎ Initial Cost ○ (○) ○ ◎ ◎ △ Connection Cost

(Maintenance) ◎ (◎) ◎ X ◎ ◎

* Characteristics of Broad band PLC is described in ( ).


The low speed PLC is low in transmission reliability because it often generates transmission error.

The method is also not suitable since the overhead caused by the retry process to recover from the

transmission error state results in loss of transmission time.

The high speed PLC, as with low speed PLC, is not suitable in terms of transmission reliability.

3-19

On the other hand, UHF/VHF is not reliable enough. The radio signal reception could be poor under

the influence of weather and new buildings. Moreover, the transmission speed is low and cannot be

extended easily to introduce the new system.

Therefore, UHF/VHF is not suitable.

It is easy for GPRS to expand into the last one mile communication because it utilizes the public

phone network.

However, there are three issues for GPRS to overcome.

a. It is public network and security must be ensured.

b. Telephone companies manage the network and we need to consult with them expand the network

into new business.

c. The maintenance cost for the entire GPRS connection would be tremendous as shown below:

<Calculation of GPRS connection cost>

1) Necessary data

(1) AMR

● Downstream data: 50 byte ● Upstream data: 100 byte

(50 + 100) byte x 24H x 2 times x 31days = 223.2 kbyte / month

(2) DR

● Downstream data: 50 byte ● Upstream data: 50 byte

● Control by every 30 minute ● Controlled day: 100 days / year

● Peak load for DR continue for 120 minutes as assumption

(50 + 50) byte x (120 / 30 minutes) x 100 day / 12 month = 3.3 kbyte / month

(3) Total: 223.2 + 3.3 = 226.5 → 227 kbyte / month

2) GPRS cost in 2010

45.5 VND / 10 kbyte in 2010

3-20

3) Cost for connection

In case of Phu Tho Power Company:

(227 / 10) kbyte x 45.5 VND x 100,000 customers x 12 month= 1,239,600,000 VND / year

In case of EVN HCMC:

1,239,600,000 VND x (1,700,000 / 100,000 customers) = 21,073,200,000 VND / year

Fiber optics is the best in terms of performance but the problem is that it takes a large cost for

installation.

Use of fiber optics is recommended since large capacity data transmission is required in the future for

customers to provide new functions and services such as remote access, remote medical diagnosis, and

HEMS.

ZigBee etc. is suitable for handling the information transmission volume of the current smart grid.

However, it is difficult for Wireless to expand into new businesses where large capacity of data is

required.

New businesses are under development and it is important that the current system be operated at

moderate cost.

Therefore, ZigBee etc. should be applied for the last one mile communication for the next several years

and it is desirable to replace it with fiber optic communication in the future.

The fiber optic network may not be built for the entire HCMC. In such case, additional network needs to

be established.

3-21

Fig. 3-2-2 Network Infrastructure of EVN HCMC


Additional fiber optics

3-22

2) Deliberation of control center

Fig. 3-2-3 Office floor plan in Phu Tho Power Company


With enough space on the 4th

floor of office main building, establish sever room would be proposed.

After air conditioning, power, security and other facilities shall be installed in the server room, install

AMR server, Front End Processor1 (FEP) and other devices without advanced DAS server would be

applied.

Advanced DAS server and FEP2 including monitoring and control device would be installed in Load &

Dispatch Communication Center of EVN HCMC.

A LAN network will be established in the office. The advanced DAS monitor and control operation

terminal shall be installed on the 1st floor of office annex building, and the AMR operation terminal is

installed on the 1st floor of office main building.

Office annex

3rd floor

Change room for

maintenance worker

2nd floor

Office of supervisory

personnel

1st floor

Control center

Office main building EVN Telecom

4th

floor

2nd floor

Office for customer information management

1st floor

Electric bill payment counter

3rd

floor

Parking area

Phu Tho office 4th

floor

3-23

The purpose of minimize of construction cost for control center to improve job efficiency based web

system configuration would be recommended because the system can be decentralized.

Fig 3-2-4 Image of control center system configuration


The advanced DAS is responsible for monitoring the distribution system, controlling the switch, and

demand monitoring. It also performs energy management by monitoring the interconnected-solar power

and controlling the interconnected-battery.

The AMR is responsible for remote automatic meter reading and ON/OFF control of the smart meter

through the DR.

FEP exchanges data with the advanced DAS server if the data is upward/downward information of the

switch mobile unit, upward information from the interconnected-solar Power Conditioning Subsystem

(PCS) or downward information to the interconnected-battery PCS. The data is exchanged with the

AMR server if it is upward/downward information of the smart meter.

The volume of information is expected to increase in the future. Therefore, the advanced DAS server

DB

AMR Server

DB

Advanced DAS Server FEP1

OfficeLAN

Phu Tho Power Company‟s office

Load & Dispatch Communication Center

Advanced DAS

Console

Optical Communication Server

FEP2

AMR Console

Optical Communication Server

Advanced DAS monitor

MOMONConsole

OfficeLAN

Control center

3-24

may have to be dispersed into the DAS server, DR server, and EMS server.

3) Analysis of smart meter installation

(1) Structure for installing smart meters

A smart meter shall be replaced with a currently-installed watt-hour meter to facilitate installation.

Watt-hour meters are installed indoors and outdoors with the meter box.

Therefore, a smart meter having the same shape and connection method as with the current watt-

hour meter makes replacement easy.

However, the shape may be slightly different depending on the components attached to a smart

meter, but it shall have the size to fit into the meter box.

(2) Time to install smart meters

It is desirable to replace the watt-hour meter with a smart meter at the validity period of the

verification stipulated by the current law concerning watt-hour meters.

The replacement cost can be reduced by replacing the watt-hour meters at this timing.

The validity period of the verification according to the watt-hour meter type is as follows:

Single-phase watt-hour meter: 5 years

3-phase watt hour meter: 2 years

Providing smart meters for the entire Phu Tho Power Company area would require about five years.

4) Analysis of distribution devices

There are two types of method of DAS, voltage system and current one. It is different by method of

detection of fault location between voltage system and current. The difference is only this point between

them.

Voltage system is adopted mainly in Japan. Voltage system can detect fault location by activating

distribution line switch automatically at interval to recharge of fault location.

3-25

The basic summary of the system is as follows:

Fig 3-2-5 Method of detection of fault location: Voltage system


On the other hand, current system is mainly adopted in Europe, e.g. urban areas in UK and France. The

system can detect fault location by detecting fault current, data transmission through communication line,

and fault section determination by CPU.

FCB SW1 SW2 SW4 SW3

FCB

110kV/15kV

Substation

SW1

Loop point

M-RTU Communication line

CPU Control Center

FDR/RTU

FEP

SW2 SW3 SW4

FDR/RTU

FDR/RTU

FDR/RTU

lock lock

Normal

Fault

FCB trip

FCB

reclose

FCB trip

FCB

Re-reclose

Load side transfer

(For fault processing or at normally open point FDR)

SW1

Time-adjusted

transmission

SW2

Time-adjusted

transmission

SW1

Time-adjusted

transmission

Achievable

by CPU

Achievable

only by

Automation

device

3-26

The summary of current systems is as follows:

Fig 3-2-6 Method of detection of fault location: Current system


FCB

110kV/15kV

Substation

SW1

Loop Point

M-RTU Communication line

CPU Control Center

RTU/Battery

FEP

SW2 SW3 SW4

RTU/Battery

RTU/Battery RTU/Battery

FCB SW1 SW2 SW4 SW3

lock lock

Normal

Fault

FCB trip

Demand

SW2/SW3 to lock

Load side transfer

(for fault processing)

Activate FCB

Judge fault section by SW relay information

Achievable

by CPU

3-27

Both systems have same basic DAS functions but there are the following advantages and disadvantages.

Table 3-2-7 Comparison of voltage and current systems


Current system Voltage system

Feeder Circuit

Breaker (FCB)

operation

○ 1 time △

2 times

・Fault may be expanded due to

fault current that flows twice.

・Damage in Oil Circuit

Breaker (OCB)

Fault detection

△

Unreliable

・Fault detection unreliable

under the influence of fault

location resistance. Must

cooperate with substations for

protection.

◎ Reliable

Redundancy ×

Low

・Fault section cannot be judged

or separated in case of failure

in CPU or communication

infrastructure.

◎

High

Fault detection and load side

transfer conducted by local

device alone and CPU and

communication infrastructure

remain unaffected.

Recovery time

◎ Fast ○

Relatively slow （ reclose 2

times）

Maintenance

△

・Batteries replaced every 3 to 5

years.

→Installed in many areas in a

large number (burdensome)

◎ Maintenance free

（no batteries required）

Co

st

System ×

・Local device alone cannot

detect fault. Initial cost for

distribution automation system

is high because it includes

CPU and communication

infrastructure.

◎

・Failure is detected by local

device alone and smallest scale

of distribution automation

system is introduced at low

cost.

Local device △

For every switch,

・Ground fault detection

(ZCT,ZPD,DGR)

・Short circuit detection

(CT,OCR)

・More batteries and chargers

required than voltage system.

○

3-28

Advantage of Voltage system:

Failure-resistant, capable of determining and separating fault section without CPU and

communication line.

Initial introduction cost is lower than current system.

Advantage of Current system:

No recharge is required for fault location to determine fault section.

Fault section is determined and separated faster than voltage system.

Disadvantage of Voltage system:

Fault location must be recharged to determine the fault section.

Disadvantage of Current system:

CPU and communication line required to introduce the system, initial introduction cost is high, low in

failure resistance.

This project will consider the adoption of the Current system and Voltage system.

Overhead: Voltage system

Underground: Current system

There are 2 MV distribution networks which consist of 15kV and 22kV. The distance for the branch office

in EVN HCMC and UG/OH is introduced in Table 3-2-8.

MV line for 22kV is less than 1 % and there is no 22kV feeder in model area (Phu Tho Power Company).

3-29

Table 3-2-8 Distribution networks in maintenance area of EVN HCMC

Branch

office

22 kV (km) 15 kV (km)

OH UG OH UG

Sai Gon 64.186 243.041

Phu Tho 62.433 75.098

Cho Lon 106.204 106.625

Gia Dinh 115.685 95.265

Go Vap 104.058 40.775

Tan Thuan 161.531 82.200

Binh Phu 222.412 53.127

Tan Phu 157.202 28.307

Tan Binh 111.600 69.099

Total of Urban

Area 1.105.311 79.537

Hoc Mon 292.330 39.852

Cu Chi 24.246 2.626 681.287 8.589

Thu Duc 203.483 57.181

Binh Chanh 456.400 44.310

Thu Thiem 271.966 80.322

Can Gio 152.666 3.847

Total of Rural Area 2.058.132 234.101

Total 24.246

(0.58%)

2.626

(0.06%)

3.163.443

(75.1%)

1,023,791

(24.3%)

Source: EVN HCMC Corporate pamphlet 2010

In case of 22kV, LBS is expensive in comparison with 15kV LBS. Therefore, we recommend to apply

15kV LBS for Phu Tho Power Company as 1st stage. If 22kV LBS will be needed more than 10 years later,

the existing LBS can be easily moved to other 15kV areas. As for other equipment such as RTU /

Concentrator / smart meter etc, they can be used to both voltages.

RMU for DAS on UG feeder is required to change from manual to automatic operation. The manual

mechanism in existing RMU can be modified to automatic operation type on principal due to additional

mechanism but the reliability is not so good and the operation speed is slow due to the motor operation.

Therefore, we propose that the existing manual type will be moved to the location for manual operation on

new UG feeder and the automatic new RMU will be installed in the existing room removed the manual

RMU.

5) Solar Power

Major purpose of solar power system in this project is to contribute to reliability of power supply. And

candidate place shall be required with adequate public space and large space for installation of solar

power –more than 10kW.

And it shall be substituted for emergency power as additional effect by batteries with solar power.

3-30

The hospital and school with the public place which have a large site on the map are suitable for the

candidate site.

There are 2 universities (institute of technology and institute of economy) and 3 hospitals in Phu Tho

area and they are located in district10.

It is expected by effect of installation of the hybrid system shall be maximized by installed to the same

feeder or the supply from the same substation. Furthermore it requires adequate space for installation

large scale solar power generation.

(1) Select the candidate place

The team considers about above requirement, select 2 candidate places. These places are also

recommended by Phu Tho Power Company.

a. Ho Chi Minh City University of Technology

Address: 268 Ly Thuong Kiet District10, HCMC

b. Trung Vuong Emergency Hospital

Address: 266 Ly Thuong Kiet, Phuong14 District10, HCMC

These 2 candidate places are connected to the same distribution line, and it shall be adapted to

operate hybrid system of solar energy and battery effectively.

University of technology has electric and electronics course, it also might be available for study

and development.

The hospital is stronghold for emergency and disasters, hybrid system of solar power and battery

shall be available for backup supply when outage.

Both of them have large space for install large scale solar power.

Hearing for manager of administration in the hospital, they have a good image for installing solar

power.

3-31

Fig. 3-2-7 Candidate place for PV installation


(2) Outline of candidate place

a. Ho Chi Minh City University of Technology

There are 2 campuses in HCMC, candidate place is a main campus. It has 14.5ha site, and enough

space or rooftop of building for installation solar power system.


Phu Tho Power

Company

Trung Vuong

Emergency Hospital

Ho Chi Minh City

University of Technology Phu Tho area

Photo3-1 Ho Chi Minh City University

of Technology

Photo3-2 situation of the campus

3-32


They have a plan for rebuilding next year. (Photo 3-5) There will be enough space for

installation solar power in for example upside of parking lot by drawing of construction plan.

They have 550kVA emergency engine generator for outage now, and will have 750kVA engine

generator in their plan after rebuilding.

In the case of disaster or emergency situation, if it could difficult to get fuel, power supply shall

supply.


(3) Study of solar power

The major reason of solar power in Vietnam is countermeasure for outage power supply.

Against a lot of outage troubles are happened frequently cause of lack of power supply and fault of

distribution line, people who have solar power prepare batteries, and use them for emergency power

supply. Then solar power systems in Vietnam are not grid connection type. All of them are hybrid

with battery.

Furthermore in this project solar power and battery systems shall be connected to the grid and

controlled by DAS with energy management system for optimize of energy supply and shaving load

Photo3-3 Trung Vuong Emergency Hospital Photo3-4 Situation of the Hospital

Photo3-5 Rebuild plan of the Hospital

3-33

peak. It might be a first experience of grid connection type large scale solar battery in Vietnam.

Southern region of Vietnam has better conditions of solar radiation. Both solar radiation and during

time of sunshine are excellently stable in HCMC. This area is appropriate for solar power.

Fig. 3-2-8 Solar radiation by month of capital city of Vietnam

Source: Quote from NEDO report march/2005 „Survey for present and future plan for usage

and relevant policies of renewable energy at „Thailand, Indonesia, Malaysia, Philippine,

and Vietnam‟

Fig. 3-2-9 Duration time of sunshine by month of capital city of Vietnam

Source: Quote from NEDO report march/2005 „Survey for present and future plan for usage

and relevant policies of renewable energy at „Thailand, Indonesia, Malaysia, Philippine,

and Vietnam‟

-Outline of the scope site-

The solar power systems installed to Ho Chi Minh City University of Technology and Tung Vuoung

emergency hospital will be first trial as large scale grid connection type solar power system. These

systems are controlled power aggressively by energy center using smart grid. These systems shall

0

1

2

3

4

5

6

7

jan feb mar apr may jun jul aug sep oct nov dec

Rad

iation k

Wh/m

2/da

y

Ha NoiDa NangNha TrangTP Ho Chi Minh

0

50

100

150

200

250

300

jan feb mar apr may jun jul aug sep oct nov dec

hours

Ha NoiDa NangNha TrangTP Ho Chi Minh

3-34

have batteries and they shall stabilize grid condition and adjust output and demand regionally. And

batteries can also use for emergency power supply.

But in this project it is difficult to adjust whole area‟s output and demand. Solar power system will

adjust output and partial load, and stabilize network, as a pilot plant. In future, it will adjust energy

balance whole of the local network with DR.

Outline of energy receiving facilities of candidate site as follows

Table 3-2-9 Energy receiving facilities of candidate site

Nos. of incoming

circuits

Receiving

voltage

Transformer

capacity

Emergency

engine

generator

Monthly electricity

consumption

Trung Vuong

Emergency

Hospital

2 circuits and

preliminary

1 circuit

15kV 1,000kVA

+ 250kVA 550kW

110MWh by 2 contract

＝220MWh

Ho Chi Minh

University of

Technology

14 circuits 380/220V - NA 5MWh to 80MWh each

Total 350MWh


a. Ho Chi Minh University of Technology

Incoming lines are divided for each building. There are14 electricity contracts in the university.

Monthly consumption for each contracts are from 5,000kWh to 80,000kWh, and total monthly

consumption is approximately 350MWh.

Solar power and battery hybrid system shall be able to adjust power supply and demand for one

to some feeders. (Power supply estimation of solar power system is shown in Chapter3.3.)


Major loads of electricity are A/C, room lights, and medical equipments. There are medical

equipments which require a lot of electricity capacity such as MRI or CT scan.

Incoming lines are divided for each building. There are two electricity contracts in the hospital,

and amount of monthly consumptions are almost same.

Solar power and battery hybrid system shall not only useful for restrain of fluctuation of solar

power but also restrain of fluctuation by starting-up and shutting-down of medical equipment,

and useful for improvement of power factor. It has highly effect to stabilize network.

3-35

3.3 Overview of Project Plan

3.3.1 Fundamental Policy of This Project

This project will be recommended to implement based on the following fundamental policy.

Application of renewable energy such as Solar Power → Solution for shortage of power

Application of EMS to control switch of Solar power and Battery → Solution for connecting to

distribution network

Peak-cut by DR → Energy saving and efficiency

Reduction of distribution loss by DAS and AMR → Energy saving and efficiency

Improvement of reliability (reduction of outage duration) by DAS → High reliability for power

supply

The details of this project based on the fundamental policy are as follows.

1) Smart meter will be installed to all of customers in Phu Tho Power Company, so that AMR and DR can

be implemented.

2) DR can control the following load.

Normal customer: All of loads are switched off during short duration (ex: 30 minutes).

Large customer: Unnecessary load except product line etc can be switched off.

3) Solar power system with battery as asset of EVN will be installed to 2 areas as pilot project and be

connected to MV distribution feeder directly. EMS in control center can monitor and control the reverse

current and the battery.

4) Servers and operator consoles for Advanced DAS with EMS are installed in Dispatch Center for existing

SCADA and monitor / control 110kV primary substations and distribution network in Phu Tho Power

Company. Other servers for AMR, DR and EMS etc are installed in Control Center of Phu Tho Power

Company and are connected to the advanced DAS through LAN and Fiber Optic communication

network.

5) ALBS for OH will be applied as new equipment. Automatic RMU for UG will be also installed as new

facilities in existing room. The existing RMU of manual type will be removed to other suitable feeder as

manual type.

6) Fiber Optic will be applied as backbone network of communication and ZigBee will be applied for last

3-36

one mile communication between RTU and customers for at least 10 years.

3.3.2 Overview of Design and Specification

1) Control center

(1) Advanced DAS server

DAS function is to implement detecting distribution failure section, separating from failure section

and control remote monitor for LBS and RMU.

Connect LBS or LMU, communication network and RTU to distribution line, and install M-RTU on

substation of 110kV/15kV and install FEP, CPU and Console which displays Skelton in control

center.

Judgment of distribution failure section will be made by CPU, based on data from RTU though

communication line, and recovery operation of supply without failure section will be carried out by

remote control of automatic switch.

It is possible to apply higher level of automatic operation by CPU such like display of distribution

network map, if upgrade will be necessary.

Fig.3-3-1 Upgrade of system

Default

Substation

SW

SW

RTU

RTU

BT

BT

FCB

FEP

CPU

PRN

Communication line M-RTU

CPU

Upgrade

G-CRT

Console

CRT

Console

3-37

[Note]

FCB: Feeder Circuit Breaker, SW: Automatic Switch (LBS or LMU), BT: Battery

CRT: Display Monitor, G-CRT: Graphic Monitor), PRN: Printer

Source: made by Study Team

DR function is that providing command to AMR server to smart meters which are located beyond

load condition, if load control is necessary based on result of monitoring.

Operation of embedded switch “off” as DR will be carried out by AMR server.

As well, operation of embedded switch “on” will be carried out by it, when load control can be

released.

DR is different between house such as residential customers and factory as large customers.

a. House

When load control is carried out, in case of house as residential customer, it will be outage.

However, when push recovery switch which is applied in smart meter, power supply will be

recovered.

b. Factory (Large customers)

To consider troublesome that outage is happened for all electricity in factory, apply a part of

smart meters in factory will be outage to configure such as A/C. Same as house, when push

recovery switch on smart meter, power supply will be recovered.

Concerning starting timing of the DR, it is considered as follows.

In the beginning of this project, the DR should be started that in case of power consumption value

beyond specific time and power which are set for initial condition, though carry out load

monitoring in distribution network area.

In future, the DR will upgrade that it will be started after two way communication with customers

when power supply will be expected to beyond plan through always expectation.

The function of fluctuations of the PV system output power is to implement that repeat control of

rapid charging and discharging for storage battery though monitoring power output condition

from PV system to connect distribution network by advanced DAS server monitoring.

3-38

And this monitor and control is carried out through power conditioner.

When failure will be happened in distribution network, disconnect them and design will be

carried out that it can be back up power supply for owner of land to be rent.

Fig 3-3-2 Concept of function of fluctuations of the PV system output power


We consider that in future, by charging up stationary battery between night and morning and discharging

them during day time, we can propose new charge-discharge control in order to realize load-shedding or

peak-cut.

送電Power transmission

電力系統Electric power system

発電Power generation

変電設備

Electrical energy transformation equipment

放電Discharge

充電Charging

パワーコンディショナーPower conditioner

電力供給Power supply

太陽電池Solar cells

蓄電池Storage batteries お客さま

Customer

Advanced DAS Server

監視制御monitor and control

PV出力　5分,20分平均化　5分,20分LPF (08/09/27)

0

500

1000

1500

2000

2500

3000

1

61

121

181

241

301

361

421

481

541

601

661

721

時間

電力

[W

]

PV出力　5分,20分平均化　5分,20分LPF (08/09/27)

0

500

1000

1500

2000

2500

3000

3500

4000

11:0

0:0

0

11:0

5:0

0

11:1

0:0

0

11:1

5:0

0

11:2

0:0

0

11:2

5:0

0

11:3

0:0

0

11:3

5:0

0

11:4

0:0

0

11:4

5:0

0

11:5

0:0

0

11:5

5:0

0

12:0

0:0

0

時間

電力

[W

]

太陽光発電の出力波形Output waveform of photovoltaics

変動抑制後の波形Waveform after curbing fluctuation

3-39

Fig 3-3-3. Concept of leveling of incoming electric power


(2) AMR server

Remote automatic meter reading function is that meter reading work is carried out from far place to

measure power consumption value of house or factory such as large customer by watt-meter

function of smart meter.

Measured power consumption value is storage in smart meter internally and AMR server will

retrieve them periodically.

Furthermore, AMR server implements to calculate difference between power consumption in

previous month and the measured data, so that the data in present month will be finalized and be

sent to billing system. The reading work is completed after this procedure

At this time, data treatment will be same level of handy terminal. Automatic data connection to

billing system will be introduced in future.

Fig 3-3-4 Concept of AMR


Transmission lines

(Optical fiber cable)

Wireless

Smart Meter

Meter Data Management System

(MDMS)House

Concentrator

House

Smart Meter

Optic Fiber Cable

ZigBee etc.

AMR Server and Console

Concentrator

Power consumptionCharging

DischargePeak

cut

3-40

(3) FEP

FEP is equipment to be interfacing advanced DAS server and AMR server.

Data communication between load switch and equipment in substation is carried out through M-

RTU in substation.

On the other hand, data communication between concentrator which communicate with smart meter

and PCS which communicated with solar panel and battery is carried out directory, not through

M-RTU in substation.

2) Communication

Applying optic fiber network which is hold by EVN HCMC for Advanced DAS and AMR is the best

solution as back bone network. However, there is possibility not to fully cover in the area.

The area of distribution network and periodical read of watt-hour meter is approx. 25km2 . And approx.

86sets of RTU for Advanced DAS and approx. 196sets of Concentrator need to be installed. Backbone

network needs to be covered throughout all the corner of the area of EVN HCMC, because 1set of RTU

in 0.3km2 and 1set of Concentrator in 0.1km

2 have to be installed.

According to the above reason, applying optic fiber cable network which is hold by EVN Telecom

(100% subsidiary company of EVN) and it should be throughout.

EVN Telecom is handling internet provider business and cellular phone provider as well. So they must

have base station and converter in the area. As shown in Fig 3-3-5, base station and converter connect

by optic fiber cable, so that the network of EVN Telecom is expected to be more suitable than current

fiber cable network.

3-41

Fig3-3-5 Optic Fiber Network of EVN Telecom


3) Smart Meter

Smart meter consists of communication terminal, watt-hour meter and internal switch for shedding the

load.

Single phase 2-wire type and 3-phase 4-wire type of smart meter should be considered for smart grid.

Smart meter should be based on specification of currently-used watt-hour meter. The summary of

specification is shown in Table 3-3-1.

Optic Fiber Cellular Phone

Pole

Converter

Base Station

Cellular Phone

Base Station

Base Station

Base Station

Base Station

Optic Fiber

Optic Fiber

Optic Fiber

Optic Fiber

Converter

Pole

Pole

Pole

3-42

Table 3-3-1 Basic Specification of Smart Meter

1Phase-2Wire 3Phase-4Wire

Connection Direct Direct Indirect

Rate

Voltage

220-240V 3*220/380-

3*240/415V

3*220/380-

3*240/415V

or

3*57.8/100-

3*69.3/120V

Maximum

current 100A 100A 10A

Frequency 50/60Hz

Switch Assembled none

Accuracy Active

energy Class 1 or 2 Class 0.5 or 1

Measurement Item Active energy (Import, Export)

Monitoring Item Voltage (V), Current (A)

TOU Item Active energy (Import)

Tiers Max. 8

Freeze

Means Schedule, remote command, switch

Record

capacity

2 times

Record value Measurement Items, TOU items

Load Profile Capacity 30days

Interval 15, 30, 60min

Log

Recording

Capacity 300 events

Record event

Supply failure

Reset

Irregular

Disconnect operation

Freezing


(1) Switch

Switch is assembled in a smart meter.

It allows remote switching and supply of power is started/stopped (e.g. due to moving) due to

moving without employee visit a customer.

It is possible to open the incorporated switch for the purpose of controlling the power consumption

in regional energy management.

(2) Measurement and monitoring

The current watt-hour meter only enables to measure power consumption of active energy, but smart

meter enable to measure voltage and current, as well as power consumption of active energy.

3-43

Measuring voltage can be confirmed that supply voltage to house or factory within specified range ,

so that it is used for optimum voltage supply operation.

On the other hand, measuring current can be realized current value which is consumed by house or

factory, and it is contributed to minimize power consumption by visible encourages.

Of course, it is possible to encourage consumers to save energy by making the active energy seeable.

(3) TOU

Used when the time of day tariff system is established.

(4) Freeze

Indicates the billing reset date.

(5) Load Profile

Indicates the demand measurement.

(6) Log Recording

Indicates the function to record and save events concerning the smart meter.

Concentrator which is communicated with smart meter, is capable of connection 500 sets of smart

meters per one concentrator. However, it is possibility not to perform enough by worse

communication condition.

In this case, the number of sets of concentrator needs to be increased and reduced the number of

smart meters per one concentrator or add out door repeater to improve communication sensitivity.

But in this case, it is concerned that the number of concentrator will become much larger than the

number of RTUs in distribution network. Therefore, RTU can‟t coalesce with concentrator .

4) Distribution equipment

It is shown that automatic distribution equipments are installed at 110kV/15kVsubstation in Table 3-3-2.

3-44

Table 3-3-2 Component of Substation Equipment for DAS

Component Explanation

M-RTU

M-RTU is installed in each substation to control all RTUs linking to the feeders of the substation and monitor the substation devices. (Sample)

Automatic Reclosing

Relay for FCB of OH

Lines

Automatic Reclosing Relay is installed in existing FCB board at substations. (Sample)

TRD Board

TRD board is installed in each substation to measure the voltage and current for the banks and feeders.


3-45

It is shown that automatic distribution equipments are installed at OH distribution line in Table 3-3-3

Table 3-3-3 Component of Upgrading DAS Field Equipment for OH Lines


LBS

LBS is automatically switching equipment of OH line controlled through RTU. (Sample)

Switch Power Supply

(SPS)

SPS is to supply the power and detect the voltage.

RTU

RTU is to control LBS by receiving command from Control Center through M-RTU and sending status data to Control Center.

Arrester

(for protection against

lightning surge)

As the field equipment for OH is installed in outside, the protection equipment against lightning is necessary. Therefore, Arrester should be installed near DAS field equipment. (Sample)


LBS

RTU

SPS

3-46

It is shown that automatic distribution equipments are installed at UG 15kV distribution line in Table 3-

3-4.

Table 3-3-4 Component of Upgrading DAS Field Equipment for UG Lines


RMU

(in Kiosk)

RMU is normally installed in Kiosk and the major functions are to switch the load current for distribution feeder and to break fault current for branch circuits. In the Project, new RMU are installed when the existing RMU are too old to operate. RMU for DMS (DAS) normally consists of two main circuits for automatic LBSs, two CB, RTU and Battery etc. (Sample) Main functions are as follows. - Detection of fault current - Adjusting unbalanced load for each phase - Communication and switching under no-voltage - Automatic switching with high speed of less than 1 second - High reliability against water, salt, dust and so on

RTU

RTU is a control system for RMU by receiving command from DAS through M-RTU and sending status data to Control Center. RTU has a fault detecting function as well.

Battery

Current sensing system requires battery for switching of RMU without the distribution line voltage. Battery has to be changed every 2-3 years. Battery charger is also necessary.


3-47

Based on three sectionalized and three connected feeder method, 15kV distribution lines will be sectioned

by LBS. It is configured that one distribution lines is split up into three sections and every distribution lines

connects the other one.

15kV UG distribution lines also will be replaced to RMU same method.

Fig.3-3-6 Three sectionalized and three connected feeder method for OH distribution lines


5) Solar Power

(1) Scale of Solar power plant

Capacity of solar power system is required huge amount of scale for adjust power supply and whole

of energy consumption of each candidate place. But in this project solar power system is positioned

as pilot plant, then its scale shall be not surplus scale of site area and cost.

20kW of solar power system requires approximately 300 square meters. This capacity‟s solar power

system shall adequate to install the panels on the roof top or above car parking space in the

candidate sites.

Plan for panel layout is shown on Fig. 3-3-7. This plan indicates using amorphous silicon type panel

and 20 degrees of panels slope angle.

Tie switch

Sectin switch

3-48

Fig 3-3-7 Layout plan for 20kW of solar power panel


(2) Outline of solar power plant

Types of solar power panels are shown Fig. 3-3-7 Crystallize silicon semi-conductor type solar

panel is the most utilize at present. Although crystallize silicon semi-conductor type solar panel has

efficient of conversion, characteristic of temperature is not good and decrease output under high

temperature.

In recent years lots of amorphous silicon type solar panels are shipped as a new type of products.

Their efficient of conversion is not good and requires much space. But characteristic of temperature

excels and decrease of power output is small under high temperature. Then more energy shall

generate under atmosphere of HCMC. In this reason this study adopt amorphous silicon semi-

conductor type solar-power panel.

Fig3-3-8 Variety of Photovoltaic cell


28m

10m

Photovoltaic cell Silicon

Semi-conductor

Crystallize

type Mono-crystallize

Multi-crystallize

Infinitesimal crystallize

thin film type

Amorphous thin film type

Compound

semi-conductor

Crystallize

type Mono-crystallize

Multi-crystallize

3-49

(3) Energy generation by solar power plant

Approximately energy generation by solar power plant is assumed by monthly solar radiation data.

Adequate slope angle of panel is assumed around 20 degree. This means much solar radiation can

gains in winter time in HCMC. Annual energy generation by 20kW solar power is estimated as

Table 3-3-5.

This is around 10% of consumption of candidate place, and it is enough energy generation as pilot

plant.

Table3-3-5 Annual energy generation by 20kW solar power plant

Slope angle Estimation of annual

energy generation

20degree 28.6MWh

0degree 26.3MWh


(4) Outline of energy storage battery

Energy storage battery for energy storage is shown in Table 3-3-6.

3-50

Table 3-3-6 Comparison of energy storage battery

Sodium-sulfur battery Lead battery Nickel hydrogen

battery

Lithium ion battery

Characteristic

･Large capacity

･Very high density of

energy

･No memory effect

･long life of cycle

time,

･reasonable cost

･Small capacity

･generality of

maintenance

technique

･short life of cycle

time,

･reasonable cost

･Small to medium

capacity

･High efficiency of

charge and discharge

relatively

･Small to medium

capacity

･High efficiency of


relatively

･no memory effect

･very high efficiency of


･long life of cycle time

･reasonable cost

Present

condition

･Monopolize for large

scale energy storage

･Generally used for

UPS system

･requires huge area for using energy storage

･A lot of used for electric

car

･Development as

medium or small

capacity energy storage

system

･direct connect at direct

current circuit with

solar power and good

compatibility with solar

power

･Now on make progress

for electric car, and

willing to decrease cost,

Consideration

for use

･Operate under high

temperature, and if

not use every day,

loss turns up

･possible that

regulation of

treatment of

dangerous object

･Life time turns

down extremely,

when not attention

with depth of

discharge

･Costly when install

large scale

･Costly when install

large scale

Comment

･A lot of record as

energy storage

･large capacity

･Compact

･long life of cycle

time

･Reasonable price

･a lot of record as a

industrial use

･ease of acquisition

･Adequate for medium

scale solar hybrid

system

･Most compact as use

feasibly room

temperature

･High energy efficient of

change and discharge

･long life of cycle time


In this project solar power plant capacity is 20kW. Consideration of present development situation

of energy storage battery and characteristic of battery, most adequate battery is Lithium ion battery

or nickel hydrogen battery. In this case, recommended battery is lithium ion battery considering with

possibility.

Major purpose of battery system is absorption of fluctuation of solar power plant and load.

Report from NEDO “Technical development of smoothly grid connection of energy storage system”,

required specification of energy storage battery was shown. Required spec of energy storage system

for 20kW solar power is estimated as Table3-3-7 by this study.

3-51

Table3-3-7 Capacity of battery system for absorption of fluctuation of solar power

Object Result of study

by NEDO This project

PV output 100kW 20kW

Average time 5min 5min

Maximum output

alternation 75kW/s 15kW/s

Maximum capacity of

battery 4.1kWh 1kWh


Battery system repeat charge and discharge cycle accompany follow fluctuation by solar power, it is

needed to operate of depth of discharge by consideration of life time as around 20 years. Capacity of

battery is chosen consideration with this. As the result, the specification of battery system is chosen

as follow.

Table 3-3-8 Specification of energy storage battery

Item Specification

Capacity of battery 4.2kWh

Specification of

inverter system

15kW


3-52

Component of solar power and battery hybrid system is shown Fig. 3-3-9.

Fig. 3-3-9 Component of solar power and battery hybrid system


20kW PV Panels

20kW PV Inverter 15kW Battery

Inverter

4.2kWh Li-ion

Battery

Controller

Connect to

Emergency Circuit

For customer

Connect to grid Controlled by DAS

LV switch board

incl. SM

3-53

3.3.3 Contents of Project

1) System configuration

The basic system configuration including all of projects is shown in Fig. 3-3-10.

Fig. 3-3-10 System configuration of Project


Control Center

110kV/15kV

Substation


(Overhead)


(Underground)

FCB

LBS

TRD

VS

VCB　Road

Solar Power

RTU

Advanced DAS Server

Smart Meter

Switch

WHM

Comunication

AMR Server

Console

FCB

VSRMU

Battery

PCSPCS

RTU

Concentrator

Concentrator

M-RTU

FEP

Optical fiber

Network

3-54

2) Component in the project

A lot of Smart Meter data are transmitted to RTU through communication of last one mile (ZigBee).

The gathered data including LBS/RMU/Solar Power are transmitted to the control center through

backbone network and M-RTU in substation.

Smart Meter consists of communication device, Watt Hour Meter (WHM) and SW for future peak-cut.

In case of applying AMR, the most suitable communication network as recommendation will consists of

Fiber optic for DAS and ZigBee as the last one mile communication between RTU and Smart Meter.

This communication network will be useful for future projects such as peak-cut by DR.

Table 3-3-9 Explanation of equipment in project

Equipment Explanation

FCB FCB is a circuit breaker to switch the fault current.

FEP FEP is a data processing system to transfer data and command between the computer and communication system.

LBS (for OH) LBS is a switch of section of feeder installed in OH line.

RMU (for UG) RMU is to switch the section of feeder installed in Kiosk in UG network. The existing switch in RMU will be modified to automatic mechanism if possible. The new RMU is also equipped with automatic switches.

M-RTU M-RTU is installed in substation and the function is to control all of Remote Terminal Units under the substation.

RTU,PCS RTU and PCS is a control unit for LBS, RMU, Solar Power in the field.

Smart Meter Smart Meter is to implement AMR function and DR in future with interactive communication.

AMR AMR is to measure the power consumption and send the data to the billing system.

DR DR is to cut or shift the peak load by control of load such as A/C (Air Conditioner).

SW SW in Smart Meter is to control the customer load (ex A/C load) in future.

DMS DMS is to improve the reliability of distribution network and to reduce the distribution loss.

Advanced DAS Advanced DAS performs energy management of distribution feeder (Solar Power) and SCADA function for 110kV primary substation.


3-55

3.3.4 Problems of Proposed System and Solution

1) Peak-cut by DR

Peak-cut by DR are proposed as follows.

Large customer: Unimportant loads such as A/C are switched off by DR.

Normal customer: All of loads are switched off by DR.

Based upon customer survey, large customers may well accept the outage of unimportant load for short

duration (example: 30 minutes) due to no outage of important load.

Normal (Small) customers are under outage for short duration, so that the dissatisfactions in the

customers are concerned in spite of short outage. As for the solution, the customers can switch on by

manual operation while the outage by DR happens. However, if most of customers will switch on, the

effect of peak-cut decrease, so that incentive is needed to advance the effect. The following incentives

are considered as ideas.

If manual operation will be implemented in the state of peak-cut, the tariff becomes much higher.

The cooperated customers can receive the privilege such as preferential tax or tariff.

The cooperated customers can receive the citation as the cooperation.

Regarding the peak-cut by DR, it is necessary to consider whether there are some problems for law in

Vietnam or not. According to MOIT, there are no problems on law for the peak-cut but take care to cut

off frequently because the National Diet will be possible to discuss due to a lot of complaints of

customers. EVN has already cut off the customers on each substation, so that we think this better outage

procedure for each customer will be acceptable.

Regarding the peak-cut by DR, there are no problems on law in Vietnam but the incentive shall be

considered in order to accelerate the energy efficiency.

2) Renewable energy such as Solar Cell

According to the International Forum on Wind Energy Development of Vietnam on 5/11/2009,

Solar Energy in Vietnam is 4-5 kWh / m2, so that the conversion to kW is around 0.1 kW / m

2 .

The area of Vietnam land is around 330,363 km2 and the capability of power can be calculated as

follows.

Assumption: 1/10 in land is available for installation of Solar Power.

0.1 kW x 330,000 x 106 x 1/10 = 3,300 GW

3-56

The capability of solar power is huge and the solar is effective for solution on increasing peak load.

However, batteries shall be equipped in order to solve unstable generation problems influenced by

weather condition etc, so that the cost becomes more expensive.

In case of Japan, the following support system on law has been carried out, so that the Solar Power

could be expanded up to 1.4GW in 2005 and will be anticipated to reach to 14-28 GW in 2020.

Government support a part of the installation cost.

Power companies have purchased with higher tariff (48 yen /kWh) for the Solar Power since

November in 2009.

However, the increased expenses on power companies can add to the normal tariff as green cost.

In case of Vietnam, the supporting money for renewable energy will be considered on new law of

energy efficiency which was set up on 1st of January in 2011. However, the supporting money is small

and is limited, so that the solar power will not expand widely. In order to accelerate the installation of

solar power, not only is the cost decreased, but also the additional supporting money or other regulation

is needed.

When a lot of renewable plants will be connected to the distribution network in EVN, problems such as

voltage-drop / safety etc occur. The following solutions against the problems will be considered in this

project and will be confirmed.

Solar cell with battery will be installed to 2 locations.

The reversed power and battery are monitored and controlled by EMS.

EMS also monitors and controls the switch for the solar.

4-1

Chapter 4 Evaluation of Environmental and Social

Impacts

4.1 Environmental and Social Condition of Target Area

4.1.1 Situation Analysis

Vietnam has been faced with severe power shortage mainly due to the delay of the development of

generation facilities in the country1. The reliability of distribution system stays low as the power loss rate in

2008 shows as high as 9.21%2 even though it saw a decline from previous years. The household

electrification rates and electricity consumption growth rate on the other hand reached 95.5% and 12.8%

respectively in 2008, and the number of customers and their power demand are expected to keep expanding.

Electricity customers in HCMC have been suffering from load shedding once or twice a week during the

dry season, which lasts all day long from morning until evening. Social adverse impacts caused by the

power cut have been seen as immense economic losses in major industries, and households‟ daily activities.

Over 55% of the electricity sales of the District 10 and District 11 of HCMC, to which Phu Tho Power

Company has extended its service, have been given to residential units (See the Chapter 1). Unlike

manufacturing unit and enterprise unit, stepping prices are applied to ordinary households as well as

small-scale retailers and offices running their business on the ground floor of ordinary housing complexes

in residential areas. Customers of residential units know that their electricity rates are gradually raised as

they consume, but are not fully aware around what time the power demand is high (peak hours), not high

(off-peak hours) and moderate (normal hours) because their electricity rates do not depend on when they

consume. Their consumption without an idea of shifting their demands for the benefit of a whole

community therefore has given an immense impact to the peak demand.

4.1.2 Future Projection (“without” the Project)

According to the draft paper of the Seventh PDP, the demand growth rates will reach 12 to 14% by 2015,

and 10 to 11% by 2020. The development of generation facilities (such as construction of gas turbine

thermal power plants) is an immediate need for meeting the growing electricity demand in case the Project

is not implemented.

The thermal power plants, in general, have direct and indirect environmental impacts such as CO2 emission

1 The installed capacity as of December 2008 is 15,678 MW, and power generation (output) is 74,224 million kWh. 2 EVN Corporate Profile 2008-2009.

4-2

and flue gas. Land acquisition and involuntary resettlement are also critical social issues to tackle. The

recent commitment to the development of nuclear power generation facilities in Ninh Thuan Province

shown by the Government of Vietnam is a positive sign in terms of generation capacity increase. However,

such nuclear power needs a long-term period of construction, during which social and economic losses

keep growing, and environmental and social impacts will be directly and indirectly immense which requires

considerable mitigation measures. The residents of HCMC, moreover, will not be affected by such

generation facilities as the facilities will be developed not in HCMC but in the suburban provinces near

HCMC, which may provoke the affected local residents to feel unfair.

4.2 Project Effectiveness in Environmental Improvement

4.2.1 Social Positive Impact on Customers by DAS

The DAS which enables remote operations of ALBS from the Power Company Office, will improve power

supply reliability of the current distribution system in the target areas. The number of customers and the

length of power outage caused by accidents will be mitigated3 which will reduce disturbance in their daily

activities and lives. Improvements in socio-economic aspects, in particular, will thus be expected such as

growth of local economy in employment and livelihood, betterment of existing social infrastructure and

social services, and equal distribution of benefits and losses.

4.2.2 Peak Shift and Energy Saving by AMR

The AMR introduced in the Project will require installment of smart meters, communication network, and

sales department system. The AMR can identify all customers‟ power usage patterns, and stop power

supply to them by automatically turning on and off the switch inside of the smart meter to reduce the peak

demand. It will help control power demand and shift the peak in easier and more effective way. The

necessity of constructing new generation facilities to meet the peak demand will thus be mitigated and

energy saving will be promoted.

By making the own power usage pattern visible for residential customers including retailers, they will

change their mindsets and learn to save their money through reducing their energy consumption around

peak hours and use while off-peak hours. In a long run, it will help the customers acquire a habit of saving

energy.

3 2.5 times more number of customers will recover their power distribution within a shorter period, and it will take one tenth

of time (TEPCO).

4-3

Photo 4-1 Residential cum Retailing Customers in HCMC


4.2.3 Distributed Power Generation Facilities (Solar Power)

As an alternative of gas turbine thermal power plant construction to meet the peak demand, a distributed

power generation model, i.e., solar power generation facilities, is proposed in this Project. The solar power

will not require fuel and thus not emit CO2 or flue gas by combustion of fuel. Installing solar power

facilities in a dense city like HCMC has environmental and social advantages. PV panels can be installed at

the roofs of buildings and sunshades of parking lots, for instance, which require no new land acquisition.

4.3 Project Impact on Environmental and Social Aspects

4.3.1 Screening based on JICA guideline

1) Issues to be raised for project implementation

Based on the JETRO Guidelines for Environmental and Social Consideration as of July 2009,

environmental and social assessment items have been examined in this study for the future scoping

conducted in feasibility studies and environmental impact assessments conducted at the stage of project

implementation. When examining project impact on environmental and social aspects, check items in the

Screening Format and the Environmental Checklist (6. Power Transmission and Distribution Lines) of

“Japan International Cooperation Agency Guidelines for Environmental and Social Consideration” (April

2010) have been referred4.

4 As the result of the merger of four policy-based financing institutions, overseas economic cooperation department of the

former Japan Bank for International Cooperation was separated and merged into Japan International Cooperation Agency as

of 1st October 2008. The rest of the former JBIC is now with the Japan Finance Corporation as its international wing. The

JBIC Guidelines for Environmental and Social Consideration (April 2002) and JICA Guidelines for Environmental and

Social Guidelines (April 2004) were integrated and revised as of April 2010.

4-4

2) Sensitive Areas

The Project will be conducted for the benefit of all customers of the District 10 and District 11 which

are under service of Phu Tho Power Company. These two districts are well developed urban and inland

area and located in the center of HCMC where population as many as 7,165,398 (estimated in 2009)5

lives. There are 54 ethnic groups including the majority Kinh in Vietnam, and HCMC holds many

numbers of Khmer, Hoa and Cham ethnics. These ethnic minorities join formal education in Vietnamese

language and they enjoy modern way of living as the Kinh people do in these urban centers. And none

of the sensitive areas in the following Table 4-3-1 are therefore found there.

Table 4-3-1 Application of sensitive areas to the project

Sensitive areas Application to the

project

1 National parks, nationally-designated protected areas Not Applicable

2 Primary forests or natural forests in tropical areas Not Applicable

3 Habitats with important ecological value Not Applicable

4 Habitats of rare species that require protection under domestic legislation,

international treaties, etc. Not Applicable

5 Areas in danger of large-scale salt accumulation or soil erosion Not Applicable

6 Areas with a remarkable tendency towards desertification Not Applicable

7 Areas with unique archeological, historical, or cultural value Not Applicable

8 Areas inhabited by ethnic minorities, indigenous peoples, or nomadic peoples with

traditional ways of life, and other areas with special social value Not Applicable

Source: Developed by Study Team

Photo 4-2 Typical Scenes of the District 10 and District 11 of HCMC City


5 The estimated population density of the District 10 is estimated 40,277 person per m2 in 2009 (area: 5.72 m2, population:

230,286), and that of the District 11 is estimated 44,931 (area: 5.14 m2, population: 230,946). They are the third and the

fourth biggest to the District 4 (46,542 person per m2) and the District 5 (45,260 person per m2). The estimated average

population density of urban HCMC is 11,911 person per m2 in 2009 (HCMC Statistical Office, HCMC Statistical Yearbook

2009, Statistical Publishing House, 2009).

4-5

3) Sensitive Characteristics

The Project will include replacement and disposal of existing customer meters, installment of smart

meters, replacement and reuse of switch gears, installment of other facilities and equipment,

establishment of the communication system, establishment of the solar power and battery system,

installment of transformers and set up of a distribution control center.

The control center will be established within the existing complex of Phu Tho Power Company, which

requires no new land acquisition in HCMC. The sensitive characteristics quoted in the following Table

4-3-2 therefore are not applied to the Project.

Table 4-3-2 Application of sensitive characteristics to the project

Sensitive characteristics Application to the project

1 Large-scale involuntary resettlement No temporary and permanent resettlement is anticipated.

2 Large-scale groundwater pumping It is not applicable to the Project.

3 Large-scale land reclamation, land

development, and land clearing The Project will not include such works.

4 Large-scale logging The Project site is located in the heart of developed area of

HCMC, and there are no forests existing there.


4) Impacts on Environment

Impacts on environment caused by the project implementation have been analyzed as shown in the

following Table 4-3-3 and Table 4-3-4. Impacts during construction stage and that of operation stage

have been separately examined. It is anticipated that the environmental load caused by the Project will

stay subtle, whereas it will bring positive impact to the environment. The “(+)” in the tables shows

positive impact, “(-)” shows negative, no mark means no (or almost no) impact, and “-” shows it cannot

be anticipated at the moment. The tables describe anticipated impacts and countermeasures.

Table 4-3-3 Anticipated impact on environment (construction stage)

Item Impact Construction stage Measures

1 Air pollution (-)

Transportation vehicles may

cause exhaust gas and dust while

carrying facilities and equipment

into the project site.

・ Periodic inspection and

maintenance work should be

properly conducted.

・ Efficient schedule management

of the whole construction

works, and proper time

management of the use of

equipment should be secured.

・ Watering on the streets should

be periodically done.

2 Water pollution (-)

Ground water can be

contaminated when optical fibers

are installed.

To treat by sedimentation and

carrying contaminated water to

water treatment plant by sealed

tank.

4-6

3 Soil pollution Not particularly anticipated. -

4 Waste (-)

The existing transformer may

contain PCB, and proper

treatment should be done when

being replaced.

Industrial waste disposal

contractor should be selected for

proper waste treatment.

5 Noise and vibration (-)

Transportation vehicles may

cause noise and vibration while

carrying equipment to the site.

・ Periodic inspection and

maintenance of transportation

vehicles should be properly

conducted.

・ Efficient schedule management

of the whole construction

works, and proper time

management of the use of

equipment should be secured.

6 Ground subsidence

Activities such as the intake of

groundwater are not planned in

the Project, and there is no ground

subsidence therefore anticipated.

-

7 Offensive odors Not particularly anticipated. -

8 Geographical features Not particularly anticipated. -

9 Bottom sediment Not particularly anticipated. -

10 Biota and ecosystems Not particularly anticipated. -

11 Water usage Not particularly anticipated. -

12 Accidents (-) Inappropriate safety management

can lead to accidents at any time.

Safety manual should be

developed and applied.

13 Global warming Not Applicable -

14 Involuntary resettlement Not Applicable -

15 Local economies, such as

employment, livelihood etc (+)

Employment opportunities for

laborers may benefit local

community and lead to

improvement of local livelihoods.

Labor Law should be strictly

followed and payment should be

properly done to the laborers.

16 Land use and utilization of local

resources Not Applicable -

17

Social institutions such as social

infrastructure and local

decision-making institutions

Not Applicable -

18 Existing social infrastructure and

services Not Applicable -

19 Poor, indigenous, or ethnic people -

There are ethnic minorities such

as Khmer, Hoa and Cham living

in HCMC6. The disparity between

the rich and the poor in HCMC is

7 times.

Priorities or affirmative actions

can be given to them when

necessary.

20 Misdistribution of benefits and

damages Not Applicable -

21 Local conflicts of interests Not Applicable -

22 Gender Not Applicable -

23 Children‟s rights Not Applicable -

24 Cultural heritage Not Applicable -

6 24,268 Khmer, 414,045 Hoa and 7,819 Cham ethnics were reported in HCMC when the census was conducted in 2009.

Majority of them lived in urban areas of the city.

4-7

25 Infectious diseases such as

HIV/AIDS (-)

There may be a risk of infection

when collecting laborers from /

out of the local community.

Contraceptive devices can be

distributed for immediate

solution, and awareness raising

program should be organized for

long-term impact.

26 Others Not Applicable -

Source: developed by Study Team

Table 4-3-4 Anticipated impact on environment (operation stage)

Item Impact Operation stage Measures

1 Air pollution (+)

SOx, NOx, CO, O3, soot, dust,

SPM will not be discharged by

the operation.

The project will help reduce

number of hours of load shedding,

which will mitigate air pollution

caused by burning fuels for the

operation of generators as

customers will not have to use

generators often.

-

2 Water pollution Not Applicable -

3 Soil Pollution Not Applicable -

4 Waste -

PV panel can last for 20 years,

and its battery 5 to 7 years.

Periodic replacement of panel and

batteries will be necessary and

proper treatment or recycle (or

reuse) should be done.

Industrial waste disposal

contractor should be selected for

proper waste treatment.

5 Noise and vibration (+)



which will mitigate noise and

vibration caused by the operation

of generators to certain extent as

customers will not have to use

generators often.

-

6 Ground subsidence Not Applicable -

7 Offensive odors (+)



which will mitigate offensive

odors caused by burning fuels for

the operation of generators to

certain extent as customers will

not have to use generators often.

-

8 Geographical features Not Applicable -

9 Bottom sediment Not Applicable -

10 Biota and ecosystems Not Applicable -

11 Water usage Not Applicable -

12 Accidents (+)

Accidents will be appropriately

and immediately treated by DAS,

which will help reduce number of

workers who suffer to get an

electric shock during their works.

-

13 Global warming (+)

The Project will help contribute to

the mitigation of global warming

by DR and application of solar

-

4-8

power and other renewable

energy sources.

14 Involuntary resettlement Not Applicable -

15 Local economies, such as

employment, livelihood etc (+)

The Project will improve the

reliability of power supply, which

will help reduce the number of

defective products caused by the

power outage and/or low voltage.

It also will help increase local

employment opportunities and

improve local livelihoods.

・ Observation by meter reader

and bill collector can be

conducted. Periodic interview

with customers can also be

conducted.

・ Transition of electricity

consumption over years can be

observed.

・ Transition of the number of

defective products over years

can be observed

・ The degree of local industry

promotion can be observed over

years.

16 Land use and utilization of local

resources Not Applicable -

17

Social institutions such as social

infrastructure and local

decision-making institutions

Not Applicable -

18 Existing social infrastructure and

services (+)

The Project will improve the

reliability of power supply, which

will help reduce the number of

defective products caused by the

power outage and/or low voltage.

It also will help increase local

employment opportunities and

improve local livelihoods.





conducted.

・ Transition of electricity

consumption over years can be

observed.

・ Transition of the number of

defective products over years

can be observed

・ The degree of local industry

promotion can be observed over

years.

19 Poor, indigenous, or ethnic people -

There are ethnic minorities such

as Khmer, Hoa and Cham living

in HCMC. The disparity between

the rich and the poor in HCMC is

7 times.

Priorities or affirmative actions

can be given to them when

necessary.

20 Misdistribution of benefits and

damages Not Applicable -

21 Local conflicts of interests Not Applicable -

22 Gender Not Applicable -

23 Children‟s rights Not Applicable -

24 Cultural heritage Not Applicable -

25 Infectious diseases such as

HIV/AIDS Not Applicable -

26 Others (-)

Adverse impact on the elderly

people (such as heat stroke) may

be caused by the smart grid load

shedding.





conducted.

・ Weather forecast should be paid

attention to and customers

should be well informed of the

possibility of high temperature.

・ Advises can be given to

4-9

customers for better insulation

and ventilation in their living

environment.


4.3.2 Comparison with Alternatives

It is pointed out that power generation capacity should be strengthened by installing generation facilities

such as gas turbine thermal power plants to meet the peak demand in order to solve the severe power

shortage. As an alternative to the further development of large-scale power generation facilities, this Project

proposes to install PV panels as a model of solar power generation to secure distributed generation

facilities.

Like other renewable energy sources, solar power generation will not produce CO2 or exhaust gas in its

operation as it will not use any fuel for power generation. However certain amount of CO2 will be created

indirectly in the process of panel production and their installation. A report published by the CRIEPI7, the

amount of CO2 produced by solar power generation is 0.038kg- CO2/kWh in its life cycle of 30 years. This

amount is far much less than those of coal, and the CO2 emission will be considerably mitigated compared

with oil and LNG thermal power generation (0.599～0.943kg- CO2/kWh) (Fig.4-3-1).

There will be no new land acquisition required for solar power generation as the panels can be installed on

the roofs of buildings and the sunshades of parking lots, which is one of the advantages of distributed

power generation facilities in a city like HCMC where people are dense.

Fig. 4-3-1 Life Cycle CO2 Emissions by Generation Source

0.079 0.043 0.123 0.098 0.0110.0130.0200.0380.025

0.864

0.695

0.476

0.376

0.000

0.200

0.400

0.600

0.800

1.000

Coa

lOil

LNG

(con

vent

iona

l)

LNG

(com

bine

d cy

cle) PV

Win

d

nuclea

r

geot

herm

al

hydr

o

kg-CO2/kWh (LHV)

Direct (Fuel for generation)

Indirect

7 Life cycle CO2 emissions per kWh by standard generation technologies were estimated with updated CO2 intensity of raw

materials taken into account in Japan.

4-10

Source: “Evaluation of Life Cycle CO2 Emissions of Power Generation Technologies –

Update for State-of-the-art Plants – (Rep.No.Y09027)”. July 2010. Central Research

Institute of Electric Power Industry

Anticipated environmental and social impacts brought by coal-fired thermal power generation as an

alternative to this Project are shown in the Table 4-3-58. Although the development of large-scale power

generation facilities will be taken place out of HCMC, which will not bring direct adverse impacts to the

immediate beneficiaries of the Project, they will be suffered from the power shortage in their daily lives and

have to wait for a long time until the generation facilities are completed.

Table 4-3-5 Possible environmental and social impact by coal-fired power plant construction

No Item Impact During construction stage During operation stage

1 Air Pollution (-)

Air pollution can be caused by exhausted

gas from transportation vehicles and

construction machinery. And dust

particles may be scattered near the

construction site and construction vehicle

road.

NOX, SOX and soot will be generated due

to the combustion of fuels. And coal

transportation may generate coal dust.

2 Water Contamination (-)

Drainage caused by rainfall, equipment

washing drainage, and sewage will be

generated during the work. And if waste

management isn‟t appropriately

conducted, effluents from waste may be

generated.

Thermal discharge will be produced

when using river water as cooling water.

Plant effluent and domestic waste water

will be generated through plant

operation. In case waste management

methods aren‟t appropriately conducted,

effluents from waste may be generated.

3 Soil Pollution (-)

Soil pollution can occur due to

lubrication oil or fuel oil spillage from

transportation vehicles and construction

machinery.

Soil pollution can occur due to

lubrication oil or fuel oil spillage for unit

operations. When an ash pond is used, it

is necessary to pay attention to the

contaminations from the pond.

4 Waste (-)

Construction work will generate metal

chips, waste plastic, wood shavings,

waste glass and waste oil. Domestic

wastes such as cans, bottles and food

residue will be generated by construction

workers at their work stations.

By-products generated through the

operation of coal-fired power plant are

coal ash, gypsum, sludge from waste

water treatment facility, and cooling

water canal fouling.

These by-products will be wasted if they

are discarded without recycling.

Maintenance work will generate metal

chips, waste plastic, wood shavings,

waste glass and waste oil. And domestic

waste such as cans, bottles, and food

residue will be generated at the workers‟

stations.

5 Noise and Vibration (-)

Noise and vibration arise due to

vibrations from transportation vehicles

and construction machinery.

Steam blowing during commissioning

will also generate significant noise.

Noise and vibration will be generated

through the operation of power facilities.

If a cooling tower is used, there is

significant noise and vibration from the

cooling fan of the tower.

For periodic inspections, noise and

vibration may arise due to vibration from

transportation vehicles and construction

machinery. When using vehicles for coal

transportation, noise and vibration may

occur.

8 The degree of impact depends in terms of geographical features, bottom sediment, biota and ecosystem, involuntary

resettlement, the poor, indigenous and ethnic people, local conflict of interest, and cultural heritage. The impacts described in

the table are therefore based on general assumption.

4-11

6 Ground Subsidence (-)

If the underground water level decreases

due to water being used for construction

work, there is a possibility of ground

subsidence occurring. However, water

usage during construction work stays

minimum, and such possibility is small.

There is a large possibility of ground

subsidence occurring if ground water is

used as cooling water.

7 Offensive Odor (-)

If the domestic waste management isn‟t

applicable at worker stations, offensive

odor may be generated due to waste

decomposition.

If ammonia used at SCR leaks, it may

become a source of offensive odor. If the

domestic waste management isn‟t

applicable at worker stations for

maintenance work etc, offensive odor

may be generated due to waste

decomposition.

8 Geographical Feature -

There is little impact if the proposed site

is plain. Examination will be necessary if

the site has any outstanding geographical

features.

-

9 Bottom Sediment -

If the proposed site is located inland,

there is no possibility of bottom

sediment. It is necessary to examine

when selecting the site.

-

10 Biota and Ecosystem -

Examination will be required if there

exists animals in the site that area

categorized in the IUCN Red list. Site

location and transmission line route

should be carefully examined in order to

avoid lands with environmental value.

-

11 Water Usage (-)

If the underground water level decreases

due to water used during construction

work, there is a possibility of adverse

impact to life water usage. Since water

usage for construction work is not

expected so large, the impact of

underground water level reduction on

water usage will be small.

If underground water is used for cooling

water, it will have a large impact on

water usage by decreasing underground

water level.

12 Accident (-)

Construction accidents may be caused

due to the defects of health and safety

management of construction work. It is

necessary to pay attention especially to

high altitude areas where accidents from

falling may occur as well as construction

vehicle road accidents and electricity

accident.

There is possibility of accidents

occurring such as fires due to oil spillage

or instantaneous combustion of coal,

accidents due to leakage or spillage of

chemicals like caustic soda and sulfuric

acid, accidents or incidents involving

maintenance work.

13 Global Warming (-) Transportation vehicles and construction

machinery will emit CO2.

CO2 will be emitted through operation of

coal-fired power plant.

14 Involuntary

Resettlement -

Land acquisition and involuntary

resettlement can be required.

Damage to houses and health hazards can

be caused by smoke extraction, noise

pollution, water pollution and ground

subsidence when the resettlement action

plan is not appropriately planned and

implemented.

Political intervention and/or local

movement against the operation of the

power station can occur when adverse

impacts on local residents‟ lives and

livelihoods are severe.

15

Local Economy such

as Employment and

Livelihood etc

(-)

Loss of employment and livelihoods can

be caused by temporary loss of

agricultural lands during the construction

period.

Permanent loss of employment and

livelihoods can be caused by land

acquisition due to power station

construction and surrounding areas]

16

Land Use and

Utilization of Local

Resources

(-)

Current land use and utilization of local

resources may be affected by the selected

location and transmission line route.

Temporary loss of present land use

Current land use and utilization of local

resources however may be affected by

the selected location and transmission

line route.

4-12

pattern and/or economic infrastructure

may occur

Permanent loss of present land use

pattern and/or economic infrastructure

may occur.

17

Social Institutions

such as Social

Infrastructure and

Local Decision

Making Institutions

(-)

Disruption of local community can be

caused via a conflict of interests among

politicians, government offices, and

residents. It might cause a delay in

procedures of land acquisition and

resettlement.

-

18 Existing Social

Infrastructure (-)

Temporary loss of existing social

infrastructure can occur due to the

construction works.

Traffic to/from power station may

become heavier. Social services may

become insufficient.

19 The Poor, Indigenous

and Ethnic People -

There are considerable ethnic minorities

such as Khmer, Hoa and Cham living in

Southern part of Vietnam including

HCMC. The disparity between the rich

and the poor in HCMC is 7 times.

Priorities or affirmative actions can be

given to them when necessary.

There are considerable ethnic minorities

such as Khmer, Hoa and Cham living in

Southern part of Vietnam including

HCMC. The disparity between the rich

and the poor in HCMC is 7 times.

Priorities or affirmative actions can be

given to them when necessary.

20 Misdistribution of

Benefits and Losses (-)

Disparity between the land owners and

the rest (landless farmers, wage laborers

etc) can be widened.

Local livelihoods can be affected and

health hazards can be caused in case the

environmental management plan is not

appropriately planned and implemented.

21 Local Conflict of

Interest -

Local conflict can occur between the

relocated people and the host community.

Local conflict can become constant

between the relocated people and the host

community.

22 Gender - -

23 Children‟s Rights (-)

Child labor may occur due to their

parents‟ loss of job. Children may catch

infectious diseases triggered by outsiders‟

entry into the community.

Child labor may occur due to their

parents‟ loss of job. Children may catch

infectious diseases triggered by outsiders‟

entry into the community.

24 Cultural Heritage -

There is no UNESCO World Heritage

existing in the Sourthern part of Vietnam

(as of December 2010). Careful

consideration however should be given to

pagodas and other historical buildings

near the site.

-

25 Infectious Diseases

such as HIV/AIDS (-)

Infectious diseases may spread via the

construction workers into the community.

Infectious diseases may spread via the

construction workers into the community.


The amount of CO2 emission by solar power generation facilities is on the other hand more than that of

nuclear power generation facilities (0.020kg/kWh), hydropower (0.011kg-Cos/kWh), geothermal, wind

power and other renewable energy sources (see the above Fig.4-2-1). Other environmental and social

impact borne by nuclear, hydropower and geothermal will however be bigger in terms of the scale of

investment, affects on natural environment, land acquisition and involuntary resettlement. Mitigation

measures will be required against the environmental and social impact on the affected people living near

the site in the construction period and operation period. It is anticipated to take longer time to construct

nuclear power generation facilities than others. Wind power facilities will also require land acquisition and

mitigation measures should be examined in advance.

4-13

4.3.3 Results of Local Consultations for Information Collection

32 customers were interviewed in the District 10 and District 11 where Phu Tho Power Company extends

its power distribution service, in order to see the condition of their electricity consumption and their views

on smart grid. Interviewed customers are comprised of 15 residential and 17 large customers.

1) Target of Interview Survey

The interview survey was designed not to subject to the scientific analysis since its objective was to

grab the qualitative features and information of customers in the target area, not the quantitative.

One of the pre-requisites of selecting residential customers was whether they had A/C, since the impact

brought by the smart grid is comparatively more on them than on those without A/C. Out of 15

customers, four had retail shops or office on the ground floor, and one had their rooms rented by

outsiders.

16 large customers were selected among Phu Tho Power Company‟s list of 30 major customers:

amusement park, garment industry, beer factory, plastic manufacturer, communication industry, medical

institutions, service industry, banking industry, retailers (supermarket), and people‟s committee. The

other one is a travel agency which rents the ground floor space of a residential house.

2) Method of Interview Survey

The Study Team first conducted face-to-face interviews and fulfilled the questionnaire sheets in order to

make sure that customers provided answers in proper way. However, the Study Team found it difficult

to conduct interviews without being accompanied by Phu Tho Power Company‟s staff, and had to limit

the survey implementation within working hours from Monday to Friday, while household

representatives were often out during day time. Phu Tho Power Company therefore sent the

questionnaire by post to most of the large customers and a few residential customers. They sent back the

questionnaire with their answers, which were followed up by the Study Team by contacting them again

to confirm the contents of their answers.

3) Contents of Interview Survey

The Study Team interviewed with the residential customers by asking their institutional (or personal)

identities, condition of electricity consumption and cost (out of major household expenditures), opinions

and ideas on current power supply and current electricity tariff, and smart grid.

Among all expenditures, the Study Team asked the customers to show invoices or receipts of their

4-14

electricity bill in order to figure out the exact amount of payment. The rest expenditures were answered

without such evidences. The questionnaire and summary of their answers are as in the Annex.

4) Results and Consideration of Interview Survey

(Residential Customer)

(1) Electricity Consumption and Cost

According to the statistics, expenditure on housing, electricity and water reached only 107,850

VND, which is equivalent to 6.2% of total household expenditure of urban population of HCMC as

of 20089.

Payment for electricity use among the interviewed customers however is outstanding and one of the

major expenditures among all, and some interviewed customers pay for electricity as much as for

food, education and medicine. It is assumed that the gap between the statistical figure and the

interview outcome comes from the fact that the interview targeted households with A/C who

comprise only 23.26% of the urban population of HCMC.

According to the interviewees, the amount of electricity consumption as of the interview time,

September 2010, was lower than that of dry season10

because the amount of rainfall in September

reached the highest, while average temperature and hours of sunshine were moderate11

.

(2) Frequency of Electricity Use

Among interviewees, there are those who limited their A/C use between 2 and 4 hours. Some rarely

use A/C. There however found some others who use A/C for 8 to 10 hours.

Residential customers often use A/C during night time. This comes from habits of people in

Vietnam who do not often install A/C on the ground floor where they have kitchen and dining

rooms. They instead install and use A/C in their bed rooms upstairs, so that the frequency of using

A/C during daytime is limited except dry season. They often have bad living condition (poor

ventilation, rooms without windows, etc). They use lights early evening as their rooms are dark.

They keep using A/C throughout their sleeping time. Such bad living condition and development of

privacy in urban areas bottomed up and promote using lights and A/C.

9 HCMC Statistical Office, Ho Chi Minh City Statistical Yearbook 2009, Statistical Publishing House, 2009 10 Some interviewees said that their electricity consumption in dry season often reached twice as much as that of rainy

season. 11 According to the HCMC Statistical Year Book 2009, the average temperature of September 2009 was 27.6 Celsius degrees

and the length of sunshine was 116.9 hours.

4-15

Among those who own their houses facing (or relatively close to) the alleys or the big streets,

grocery shops or sales shops do not install A/C as they have their own customers keep coming so

that they keep the doors always open. The other customers using the ground floor as offices on the

other hand keep using A/C all day long because they had to shut windows against the noise caused

by vehicles and motorbikes passing by. Those with A/C use of a few hours tried to save money by

using fans at home due to the electricity bill accounted for much in their expenditures.

Photo 4-3 Houses in narrow alleys


(3) Reflections on Current Rates of Electricity Consumption

Interviewees were satisfied with the Phu Tho Power Company‟s present electricity supply.

Although they often experience day-long load shedding and sudden power outage particularly in dry

season, no load shedding was reported during the survey period (September 2010: rainy season), no

damage to electric appliance was reported due to power outage, and they were happy about the

quick response offered by Phu Tho Power Company‟s staff as part of their customer relations.

As per electricity bill, they are not strongly willing to pay more than they currently do, but they said

they would do so if the government decides to increase the tariff and applies it to all customers

equally.

(4) Reflections on Smart Grid Introduction

It was prominent that the interviewees chose power outage, instead of choosing to pay additional

4-16

money for keep using the electricity. They fully understand the residential unit retail price gradually

increase as they use electricity more. It seems that they think they can save money by not using

electricity.

On the other hand, many of them said they would like to keep using electricity only if the additional

payment stayed within 5% to 10%, or amount neighbors accept. Some households try to use fans

during day time and A/C during night time. They therefore wished to keep using either of them, or

at least one electric appliance. Some said they were already used to having power cut one or twice a

week for a whole day.

When asked power shortage only on A/C, they answered „we can manage load shedding for 30

minutes to 1 hour,‟ „we will understand if other customers are also in the same situation,‟ „we will

be okay if certain compensation is given.‟ Others strongly demanded „we want to have high quality

of service without power outage,‟ and they requested to have 24 hours of stable power supply

instead of any compensation given to them.

Photo 4-4 Notice of Power Cut Source: Taken by Study

Team

4-17

(Large Customer)

(1) Frequency of Electricity Use and A/C Use

The results of interview saw an apparent difference by industry and by sector. Garment industry use

electricity for the sewing equipment, medical institution use for medical equipment, and

supermarkets use for frozen cases. They keep running their facilities, equipment and machines of

their own, which had kept their electricity consumption high throughout a year.

Those customers who often have their clients, and who run offices where their staffs stay all day

long are found to keep using A/C throughout the working hour in order to secure comfortable

working condition for their staff. Most of customers own generators for back-up.

(2) Reflections on Current Rates

They were satisfied with the current power distribution by Phu Tho Power Company. Reasons

raised by them were „they can use electricity for 24 hours a day,‟ „Phu Tho Power Company

provides good services.‟ As per electricity bill, they are not strongly willing to pay more than they

currently do, but they said they would do so if the government decides to increase the tariff and

applies it to all customers equally. Medical institutions have a flat rate applied nationwide so that

they feel they are privileged and well satisfied. The others feel the tariff is too expensive, but some

explained „I take it for granted to pay the bill as it is equally applied to everybody,‟ and „I am not

unsatisfied, but I am willing to pay additionally if Phu Tho Power Company improves the quality of

service.‟

(3) Reflections on Smart Grid Introduction

They did not accept any situation without A/C in order to secure comfortable and noise-free

working environment, and to keep their facilities running in the controlled room temperature. They

said they would run their generators in case A/C was stopped.

Those who accept to have A/C off said they were okay to have 30 minutes off, and 10% discount in

return.

5) Task Analysis in the Enforcement of the Differentiation Outage

(1) Promotion of customers‟ awareness raising

4-18


Photo 4-5 Phu Tho PC staff gives invoices and

collects money

EVN HCMC, on behalf of all power companies including Phu Tho Power Company, shares

information through advertisement on

newspaper, TV commercial films, and

internet when they anticipate shortages

of electricity supply, or power outage

due to the repair and maintenance

works. However, there found some

customers who did not obtain such

information because they were not

exposed to such media.

They did not know, if they did not

receive prior notices, how long the

power outage would last because they were not sure if the power outage was caused by accidental

power outage due to thunders and breakdown of facilities etc.12

, load shedding, or sudden power

outage due to the power shortage. Moreover, customers do not always remember what actually

happened.

Phu Tho Power Company‟s further efforts to keep in direct touch with customers are recommended

as possible measures to promote their understandings on smart grid. Phu Tho Power Company sends

their staff to each customer for monthly meter reading and invoice distribution. They collect money

at customers‟ addresses or at Phu Tho Power Company‟s customer center. Phu Tho Power

Company may be able to collect customers‟ view, and to explain to them about the background,

significance of smart grid load shedding and benefit given to customers. Marketing should be

strategically promoted, and allocation of communication officers will also be good to deal with

customers in order to collect further understandings of customers, and improve their awareness

toward the importance of energy saving.

They may feel unfair, at the beginning of project implementation, when their households get power

cut. Phu Tho Power Company can further promote advocacy activities in which customers‟

understandings and cooperation toward smart grid. Phu Tho Power Company also can work on PR

to make their customers more aware of prior notice on power cut, which will help increase their

understandings that the power cut is fairly implemented.

It depends on residential customers to choose whether they cooperate with Phu Tho Power

Company‟s efforts for smart grid promotion. Phu Tho Power Company is encouraged to keep

12 Load shedding in dry season lasted all day long from 7 in the morning to 6 in the evening due to the power shortage.

Sudden power outages on the other hand happened and lasted for 30 minutes to 2 hours at longest.

4-19

sending their message that energy consumption cost can be saved by cooperating with Phu Tho

Power Company and effective energy use can be promoted.

For large customers, the loads which do not affect their activities will be cut off.

(2) Improvement of Customers‟ Buildings and Houses

Houses and buildings constructed in Vietnam have poor noise protection or insulation function.

Outside noises are often heard in the houses and buildings. Ventilation is not always secured in their

houses and buildings. Living environment is often in bad condition due to the poor housing

condition, not whether they have A/C or not. The improvement of living environment in the District

10 and District 11 can be promoted in collaboration with the People‟s Committee and other

governmental organizations.

4.4 Summary of the Law to be related to considered Environmental

Social Impacts in Vietnam

4.4.1 Summary of the Law to be related to considered Environmental Social Impacts

1) EIA

The following Table 4-4-1 introduces major laws, decrees, decisions, and circulars on environment and

environmental impact assessment up to date in Vietnam.

Table 4-4-1 Legislative documents on EIA

Date No Name

Environment

2005/12/12 Order No.

29/2005/L-CTN Law on Environmental Protection (No. 5212005/QH11)

2006/08/09 Decree No.

80/2006/ND-CP

Detailing and Guiding the Implementation of a Number of Articles of

the Law on Environmental Protection

2008/02/28 Decree No.

21/2008/ND-CP

Amending and Supplementing a Number of Articles of the

Government‟s Decree No.80/2006/ND-CP of August 9, 2006

EIA

2006/11/22 Decree No:

140/2006/ND-CP

Providing for the environmental protection at stages of elaboration,

evaluation, approval and implementation of development strategies,

planning, plans, programs and projects

2007/11/26 MONRE Decision No.

19/2007/QD-BTNMT

Promulgating the Regulation on the conditions for and

provision of the service of appraising environmental

impact assessment reports

4-20

2008/12/08 MONRE Circular No.

05/2008/TT-BTNMT Guiding SEA, EIA and EPC

Source: Incorporated by Study Team

The Law on Environmental Protection (No.5212005/OH11) replaced the former law stipulated in 1993.

This law is the basis of environmental impact assessment and environmental protection in Vietnam. The

Decree No.140/2006/ND-CP was issued along with the new law in 2006.

2) Environmental Standard

The VES shows the environmental standard and industrial emission standard in Vietnam. The Law on

Standards and Technical Regulations was promulgated in 2006, followed by revisions of environmental

standard (see Table 4-4-2).

Table 4-4-2 Legislative documents on environmental standard

Date No Name

Environmental Standard

2006/6/29 Law No.68/2006/QH11 Law on Standards and Technical Regulations

2006/9/26 MONRE Decision

No.23/2006/QD-BTNMT On the issuing of the list of hazardous waste

2007/8/1 Decree No.127/2007/ND-CP Detailing the implementation of a number of articles of the Law on Standards

and Technical Regulations

2008/7/18 MONRE Decision No.

04/2008/QD-BTNMT Promulgating National Technical Regulation on Environment

2009/10/7 MONRE Circular

16/2009/TT-BTNMT Regulating National Technical Regulation on Environment

2009/11/16 MONRE Circular

25/2009/TT-BTNMT

Regulating National Technical Regulation on Environment （QCVN 07, 16,

17, 18, 19, 20, 21, 22）


Decrees and circulars following the Law provide details of environmental standards such as water quality,

air quality, and waste.

Among them, the MONRE Decision No. 23/2006/QD-BTNMT stipulates specific industry equipment

which creates hazardous wastes, and kinds of hazardous waste. The Project will include disposal of

distribution equipment and batteries, which is not relevant to the requirement of disposing equipment

containing hazardous wastes stipulated in the same Decision as listed in the Table 4-4-3. It is however

recommended to reconfirm its irrelevance when the Project is implemented and described in EPC.

Others are not applicable to the Project.

4-21

Table 4-4-3 Hazardous Waste List in power sector equipment

Code Waste stream EC code

A/B code

Basel

convention

Y code

Basel

convention

Hazardous

properties

State

(solid /

liquid /

sludge)

Remark

19 02 01 Transformers and capacitors

containing PCBs

16 02 09 A3180

B1110

Y10 TO, ET Solid *

19 02 02 Discarded equipment

containing or contaminated

by PCBs

16 02 10 A3180 Y10 TO, ET Solid *


containing

chlorofluorocarbons, HCFC,

and HFC

16 02 11 Y45 TO, ET Solid *


containing free asbestos

16 02 12 A2050 Y36 TO, ET Solid *


containing hazardous

components

16 02 13 A1030

A2010

A3180

Y10

Y29

Y31

TO, ET Solid *

19 02 06 Hazardous components

removed from discarded

equipment

16 02 15 A1030

A2010

A3180

Y10

Y29

Y31

TO, ET Solid **

TO: Toxic, ET: Ecotoxic,

*: Mirror Entries – hazardous waste only if dangerous substances are present above threshold

concentrations. ** Absolute Entries – Hazardous waste regardless of any threshold concentrations.

Source: Extracted from Attachment of MONRE Decision No.23/2006/QD-BTNMT dated 26

September 2006.

3) Social Environment

Legislative documents on land use, compensation and resettlement are found in the following table. There

will be no land acquisition or involuntary resettlement caused by the Project since the Project will not

create new buildings outside of their existing complex.

Table 4-4-4 Legislative Documents on Land Use, Compensation and Resettlement

Date No Name

Land Use, Compensation and Resettlement

2003/12/10 Order

No.23/2003/L-CTN Land Law (No. 13/2003/QHll)

2004/10/29 Decree No.

181/2004/ND-CP On the Implementation of the Land Law

2004/12/03 Decree

No.197/2004/ND-CP

Compensation, Support and Resettlement When Land is Recovered by the

State

2006/01/27 Decree

No.17/2006/ND-CP

Amending and Supplementing a Number of Articles of the Decrees

Guiding the Implementation of the Land Law and Decree

No.181/2004/ND-CP on Transformation of State Companies into

Joint-Stock Companies


4.4.2 Summary such as the EIA in Vietnam

4-22

1) SEA

The new Law on Environmental Protection stipulates that the objects subject to the elaboration of the

SEA 13

as show in the following table. SEA is not applicable to the Project.

Table 4-4-5 Objects subject to elaboration of SEA and application to the project

No Objects subject to elaboration of strategic environmental assessment Application to

the project

1 National socio-economic development strategies, planning and plans Not Applicable

2 Strategies, planning and plans for development of branches or domains on a

national scale Not Applicable

3 Socio-economic development strategies, planning and plans of provinces, centrally

run cities or regions Not Applicable

4 Planning for land use, forest protection and development; exploitation and

utilization of other natural resources in inter-provincial or inter-regional areas Not Applicable

5 Planning for development of key economic regions Not Applicable

6 General planning of inter-provincial river watersheds Not Applicable

Source: Article 14, Law of Environmental Protection (No.52/2005/QH11)

2) EIA

The Appendix of the Decree No. 21/2008/ND-CP shows in detail14

the objects subject to the

elaboration of the EIA15

as in the following table. EIA will not be applicable to the Project.

Table 4-4-6 Objects subject to elaboration of EIA and application to the project

No Projects Scale Application to the

project

Group of energy and radiation projects

38 Projects to build nuclear reactors All Not Applicable

39

Projects to build production, business and service

establishments using radioactive substances or

discharging radioactive wastes

All Not Applicable

40 Atomic power or thermal nuclear projects All Not Applicable

41 Thermo power projects ≥ 30 MW Not Applicable

42 Wind power projects ≥ 100 ha Not Applicable

43 Solar power projects ≥ 100 ha

The Project will

install solar pond

and batteries,

which scale will

13 Strategic Environmental Assessment refers a system of incorporating environmental considerations into policies, plans and

programs at the (strategic) stage of policy making. It is conducted prior to the environmental impact assessment at the stage

of project planning. 14 Part of the Annex of the Decree No. 80/2006/ND-CP has been revised. 15 EIA refers a prior assessment of the possible positive or negative impact that a proposed project may have on the

environment, together consisting of the natural, social and economic aspects. The assessment results will be disclosed and

share with local community for reflecting their ideas into the project.

4-23

not reach 100 ha.

Therefore it is not

applicable.

44 Hydropower projects ≥ 300,000m3 of reservoir Not Applicable

45 Projects to build height-voltage power lines ≥ 100 km in length

The Project will

not apply for

high-voltage power

line. Therefore it is

not applicable.

46 Projects to manufacture electric wires and cables ≥ 2,000 tons of aluminum

per year Not Applicable

Group of electronic and telecommunication projects

47 Projects to build radio transmission and radio

transmission-receipt stations ≥ 2 kW

Not Applicable in

power capacity

48 Projects to manufacture electric and electronic

appliances

≥ 10,000 of appliance per

year Not Applicable

49 Projects of manufacture electric and electronic

components ≥ 100 tons of products

Not Applicable as

manufacture will

not taken place, but

purchase will be

done in the Project.

50 Projects to build telecommunications lines ≥ 100 km in length Not Applicable in

size

52 Projects to manufacture telecommunications cables All Not Applicable

Source: Appendix, Decree No. 21/2008/ND-CP

3) EPC

The Project Owners are required to elaborate the EPC when EIA is not required. They are allowed to start

their production and business activities after registering the EPC. The Project Owners are to mention the

following issues in the EPC, and the District People‟s Committee will issue a certificate16

. The Project will

be conducted by Phu Tho Power Company in their service areas, and no new registration will likely be

required.

Location of execution

Type and scale of production, business or service and materials and fuel used

Kinds of wastes generated

Commitments to apply measures to minimize and treat wastes and strictly comply with the

provisions of law on environmental protection

The Project will improve facilities and install equipment in the areas where Phu Tho Power Company has

been already providing their services. SEA and EIA will therefore not be applied, while the EPC is required

for submission. When applying the EPC, the Project Owner is responsible to submit the application to

either of the District 10 or the District 11 for registration. Two districts will share information mutually for

comments. The issuance of the certificate will be taken place at shortest within five days17

.

16 Article 25, Law of Environmental Protection. 17 The Study Team interviewed with Mr. Mai Thanh Dung (Director, Department of Environmental Appraisal and Impact

4-24

4.5 Necessary Actions Taken by the Project Proponent

Upon implementation of the Project, Phu Tho Power Company will be required to develop the EPC and

submit to either of the District 10 or the District 11 for registration. The rest district will be informed by the

other for comments. Completion of registration will enable them to start the activities under the Project.

Phu Tho Power Company has to mention the following issues in the EPC.

Location of execution

Type and scale of production, business or service and materials and fuel used

Kinds of wastes generated

Commitments to apply measures to minimize and treat wastes and strictly comply with the

provisions of law on environmental protection

Assessment, Vietnam Environment Administration, VEA on 23 November 2010 in Hanoi.

5-1

Chapter 5 Financial and Economic Evaluation

5.1 Estimation of Project Cost

5.1.1 Scope

Regarding the project, system / equipment and the quantity are introduced in Table 5-1-1.

Table 5-1-1 Project scope

System / Facilities Quantity Explanation

1.Advanced DAS

and AMR

1 system

-Advanced DAS with EMS has function of SCADA for 110kV substation and will be installed in SCADA center. -AMR and DR will be installed in Phu Tho Power Company area. -Distribution feeder monitoring and remote controlling such as automatic LBS etc. -Output fluctuation control of renewable energy to connect distribution feeder.( Charge and discharge of rechargeable battery) -Consider energy management in future. -Remote meter reading by communicate with smart meter. -DR for support prevention over supply and overload. -Apply structure of thin client system and dual type of server.

2.Substation facilities

4 SS

-Ｍ-RTU, Fiber Optic device, Interface and adaptation work between M-RTU and existing Substation device, etc. -34 Primary substations in EVN HCMC can be monitored and controlled as SCADA function. At first, 4 substations in Phu Tho Power Company area can be implemented as 1

st

stage. 3.New RMU

25 units

-UG feeder : 7 feeder → 10 feeder (2014) -Needed RMU: 10 feeder×2.5 = 25 -New RMU will be installed in Existing room. -The existing RMU of manual type will be moved to other suitable site.

4.New OH DAS

equipment

86 units

-OH feeder: 12 feeder → 19 feeder (2014) -Needed OH DAS: 19×4.5 = 86 -15kV ALBS,RTU including Fiber Optic device, Switch Power Supply,, Arrester, etc.

5.Smart Meter

and Concentrator

90,000 units 8,000 units

196 units

-There are 90,000 residential customers and 8,000 large customers in Phu Tho Power Company area around 25km

2.

-Apply 500 smart meters by 1 concentrator. -In case of worse communication, communication support by repeater on out door etc. will be required.(Option)

6.Solar Power

2 sets

-20kW/customer, Solar panel, Battery, Power Conditioner, etc.

7.Fiber Optic

0 km

-Fiber Optic has already been installed in EVN HCMC including EVN Telecommunication company.

5-2

8.Engineering Service

1

-Including Training in Japan(3 managers / 7 engineers)


5.1.2 Project Cost

Project cost with foreign and local money is calculated based on the scope as shown in Table 5-1-2. The

foreign cost is around 30 MUS$ and the total foreign cost including tax etc is around 39 MUS$.

Table 5-1-2 Project Cost

Scope Quantity

Cost

Remarks Foreign 10

8yen

(MUS$)

Local MVND (MUS$)

1. Advanced

DAS / SCADA

with EMS

EVN HCMC

Control Center

1 system

5.3

(6.5)

13,644

(0.7)

1. Advanced DAS with SCADA is installed in existing SCADA center and can implement energy management of distribution feeder.(Solar Power) 2. AMR/DR is installed in Phu Tho Power Company area and is connected to Advanced DAS by data link of Fiber Optic

2. AMR / DR


1 system

3. Substation

facilities

4 SS 1.0

(1.2)

3,898

(0.2)

0.3 MUS$ x 4 = 1.2 MUS$ 1

st stage: 4 substations (110kV)

2nd

stage: expand to 34 substations

4. New RMU 25 units 1.0

(1.2)

1,949

(0.1)

45 kUS$ x 25 = 1,125 kUS$ →1.2 MUS$

5. New OH DAS

equipment

86 units 1.1

(1.3)

1,949

(0.1)

15 kUS$ x 86 = 1,290 kUS$ →1.3 MUS$

6. Smart Meter,

Single-phase,

Three phase

Concentrator

90,000 units

8,000 units

196 units

13.8

(17.0)

19,491

(1.0)

120US$ x 90,000 = 10.8 MUS$ 700US$ x 8,000 = 5.6MUS$ 3,000US$ x 196=0.6MUS$

7. Solar Power 2 sets 0.2

(0.3)

1,949

(0.1)

20kW: 0.15 MUS$ 0.15 x 2 = 0.3 MUS$

8. Fiber Optic 0 0 0 Use existing Fiber Optic

9. Engineering Service

1 2.0

(2.5)

13,644

(0.7)

Including Training in Japan

Sub Total - 24.3

(30.0)

56,524

(2.9)

10. TAX 1 5.3

(6.6)

5,847

(0.3)

Foreign: Sub Total x 20% x 10% Local: Sub Total x 10%

5-3

11. Physical Contingency

1 1.2

(1.5)

1,949

(0.1)

5% x Sub Total

12. Price

escalation

1 0.7

(0.9)

5,847

(0.3)

2.4% for Foreign 8.4% for Local

Total 31.5

(39.0)

70,168

(3.6)

70,168 (3.6)

Exchange rate: $1 = 19,491VND = 80.89 yen (by Tokyo Mitsubishi UFJ bank 10/29 in 2010)


5-4

5.2 Preliminary Economic and Financial Analysis

5.2.1 Expected Effect of the Project

1) Expected Effect

Following 5 effects are expected after implementation of the project.

decrease of outage duration

improve of maximum average capacity rate of the substation

decrease of loss (technical loss of MV line and non-technical loss)

solar power generation

peak cut by DR

The relationship between the effects and the system / facilities in this project is described as Fig 5-2-1.

Fig 5-2-1 relationship between Effect and System / Facilities in Project


Decrease of outage duration

Improve of maximum average

capacity rate of substation

Decrease of loss

Solar Power Generation

Peak-cut by DR

DAS

AMR

Facilities of Solar Power

DR

<Effect> <System / Facilities in Project>

5-5

30 MUS$ of foreign project cost calculated in Table 5-1-2 are roughly decomposed to each system as

shown in Table 5-2-1.

Table 5-2-1 Rough Decomposition of Project cost (Foreign portion)

Scope DAS AMR Solar Power DR

Advanced DAS/AMR/DR 3.5 1.0 1.0 1.0

Substation facilities 1.2

New RMU 1.2

New OH DAS equipment 1.3

Smart Meter 8.5 8.5

Solar Power 0.3

Engineering service 1.0 0.5 0.5 0.5

Total (MUS$) 8.2 10.0 1.8 10.0


The components of this project can be allocated to the effects based on the utilization rate as shown in

Table 5-2-2. Therefore, the cost for each effect can be roughly calculated by multiplying the cost of Table

5-2-1 to the rate of Table 5-2-2. The rough cost is described in Table 5-2-2.

Table 5-2-2 Rough Project rate and cost for the effect

Effect DAS AMR Solar Power DR Total

(MUS$)

Decrease of outage duration 50% 4.1

Improve of maximum average

capacity rate of substation

20% 1.7

Decrease of technical loss 20% 1.6

Decrease of non-technical loss 100% 10.0

Solar Power Generation 1% 100% 1% 1.9

Peak-cut by DR 9% 99% 10.7


Table 5-2-3 Expected Effects of the Project

Before the project (a)

After the project

(b) Effects (a)-(b)

1. Decrease of Outage duration

373 min.

77 min.

-296min.

（4.93 hr）

2. Improve of maximum

average capacity rate of the

substation

75%

83%

＋8%

3. Decrease of loss

(technical loss of MV line)


(1.72%）

(2.43%)

(1.16%）

（1.3%）

（-0.56%）

（-1.13%）

4. Solar Power Generation

－

+57,200kWh/year

(28,600kWh＊2)

＋57,200kWh/year

(28,600kWh＊2)

5-6

5. Peak cut by DR

－

255MW＊2 hrs

＊40 days/year

255MW＊2 hrs

＊40 days/year


2) Preconditions

Preconditions are as follows.

Construction period: 2013- 2014, commissioning: 2015

Project period: 20 years (2015-2034)

Sales (kWh) is estimated based on the actual data of 2009 and is extended with an average growth

rate of 5%.

Sales unit price per kWh in 2010 is estimated as 1,193 VND/ kWh, based on the actual data in

2009. With regard to a tariff, the Nikkei reported as of November 25 that the Government of

Vietnam plans to raise a tariff by 30% in 2011. Followed by this news, it presumes that two price

hikes will be done in 2011(+30%) and in 2015(+20%). Then sales unit price per kWh in 2015 is

estimated as 1,860 VND/ kWh.

Unit price of power purchase: 5.5c/ kWh (oral information). Price of power purchase in 2009 is

estimated as 990 VND/ kWh and price of power purchase in 2015 is estimated as 1,180 VND/

kWh by adding 200 VND.

Foreign Exchange Rate: $1＝19,491 VND, $1=80.89 Yen (Tokyo-Mitsubishi UFJ Bank as of

29 October, 2010)

3) Estimate of Benefits

(1) Decrease of outage duration

Basic idea: Power failure will be decreased by 296 minutes (=4.93 hours) after the project. It will

contribute to sustain economic activities across the country. Therefore an increase of

sales will be a economic benefit. As a financial benefit, power company increases a

profit.

Estimate condition: It is estimated that sales (kWh) in 2015 is 996.4 kWh. And power failure will

decrease 296 minutes (=4.93 hours) after the project.

Economic benefit will be estimated as:

Sales (kWh)＊improved power failure (hours)／8,760 hours＊1,860 VND/kWh

=996.4kWh＊(4.93hours／8,760hours)＊1,860 VND/kWh=1,043.01 million VND=53,512 US$

5-7

Financial benefit will be estimated as:

sales (kWh)＊improved power failure (hours)／8,760 hours＊(1,860 VND/kWh-1,180 VND/kWh)

=996.4 kWh＊(4.93hours／8,760hours)＊（1,860 VND/kWh-1,180VND/kWh）

=381.31 million VND=19,563 US$

(2) Improve of maximum average capacity rate in the substation

Basic idea: Power company generally has to construct a new substation when a maximum average

capacity rate of a substation exceeds 75%. However it can postpone a construction of a

new substation until a maximum average capacity rate reaches 83%.

With regard to a economic benefit and a financial benefit, construction cost of a new substation (63

kVA＊2 banks) costs 15 million US$. 2,411 million kWh of expected sales in 2034 needs 275.23

MW capacity in 2034. Meanwhile annual average capacity usage ratio in a substation is estimated as

0.224 in 2015, based on 743.519 million kWh of sales and 84.8MW.

Required units of substations in 2034 under the existing maximum average capacity rate (75%) will

be

0.224＊(63 MVA＊2 banks)＊A＊0.75＝275.23MW

∴A=13.00 units are required in 2034.

Required units of substations in 2034 under the improved maximum average capacity rate (83%)

will be

0.224＊(63 MVA＊2 banks)＊B＊0.83＝275.23MW

∴B=11.748 units are required in 2034.

Difference between (A) and (B) will be a number of deferred substations by improving a maximum

average capacity rate.

Construction cost to be deferred until 2034 will be

1.252 units ＊15 M US$＝18.78 MUS$

(3) Decrease of loss (technical loss and non-technical loss)

Basic idea: Losses consist of a technical loss and a non-technical loss. Technical loss is defined to be

one caused mainly from technical and physical reasons when power is transmitted

5-8

through distribution facility. Meanwhile non-technical loss is defined to be one caused

from such human reasons as theft or non collection of electricity bills. As an economic

benefit, sales will increase in proportion with an improved loss rate. Meanwhile a profit

will also increase as a financial benefit.

Estimate condition: technical loss

sales (kWh)＊（improved technical loss rate (%)）

＝996.4 million kWh＊0.56％＝5,57984 million kWh

Sales will increase:

5.57984 million kWh＊1,860VND/kWh＝10,378 million VND=532,476 MUS$

A financial benefit will be an increase of profit.

5.57984 million kWh ＊1,860VND/kWh=10,378 million VND=532,476 MUS$

non - technical loss

996.4 million kWh＊（improved non-technical loss rate (%)）

=996.4 million kWh＊1.13％＝11.259 million kWh

Economic benefit will be an increase of sales:

11.259 million kWh＊1,860VND/kWh＝20,941 million VND＝1.074 MUS$

Financial benefit will be an increase of profit.

11.259 million kWh＊1,860VND/kWh＝20,941 million VND＝1.074 MUS$

(4) Solar power generation

Basic idea: Power company sells power generated by two newly-installed solar power generators

(20kW＊2 units). Thus Power company earns sales by selling power and does not need

to buy power from a transmission company.

As one solar power generators will generate 28,600 kWh per year, a total of 57,200 kWh is

generated with two generators.

As an economic benefit, the following sales will be expected:

57,200 kWh＊1,860 VND/kWh＝106,3492,000 VND＝5,458 US$

Likewise, a financial benefit will be

57,200 kWh＊1,860 VND/kWh＝106,3492,000 VND＝5,458 US$

5-9

(5) Peak cut by DR

Basic idea: The project aims to control a demand in peak time by cutting A/C and unnecessary

load for large customer. During the peak time, AMR activates to stop supplying power to

A/C and unnecessary demand so that a peaky demand will be cut off automatically.

As a result, construction of a new gas turbine power plant will be deferred from a viewpoint of an

overall national economy. Meanwhile a financial benefit consists of two factors: the first one is a

decrease of sales caused by a temporarily cut-off and the second one is a decrease of power purchase

power company has to purchase from the transmission company during the peak time.

Estimate condition: Economic benefit

Demand in peak time will be 510 MW, which consists of usage of residential customers and

unnecessary demand of large customers.

3 kW ＊90,000 residents + 30kW＊8,000 industrial users= 510,000kW. Moreover 380 US$/kW is a

unit price to construct a new gas turbine plant.

Then a total construction cost of a new gas turbine plant is estimated as:

380 US$/kW＊255,000 kW＝96.9 MUS$ (i)

operating cost of a power plant mainly consists of fuel cost. 0.1 US$/kW is a unit price to generate

1kW.

An operating cost during the peak time will be

255 MW＊2 hours＊40days ＊20 years ＊0.1$/kW＝40.8 M $ (ii)

(i)＋(ii)=137.7MUS$ i.e. 6.885 MUS$/year for the 20 years

Financial benefit:

Financial benefit consists of two factors: the first one is a decrease of sales caused by a temporarily

forced power failure and the second one is an amount of power purchase a power company does not

need to purchase from the transmission company during the peak time.

In this study, the unit price of power purchase is 5.5c/kWh. With regard to a current tariff for an

industrial user, a price in peak time is two times as high as that in normal time, and a price in off-

peak time is 50% of that in normal time. When a power tariff for sales and power purchase is well

priced and is designed to reflect a fluctuating demand among in peak time, in normal time and in

5-10

off-peak time, the financial benefit may also reflect a fluctuating demand properly. In this study

therefore the unit price for power purchase in peak time presumes to be two times as high as that in

normal time, based on a belief that both a unit cost of sales and a unit cost of power purchase

proportionally change.

Annual decrease of sales caused by a temporarily power cut will be

255MW＊2 hours ＊40 days ＊(1,860 VND/kWh－1,180 VND/kWh)

＝13,872 million VND= 711,713 US$ /year

Annual power purchase Power Company has to purchase from the transmission company during the

peak time will be

255MW＊2 hours ＊40 days ＊(1,180 VND/kWh* 2)

＝48,144,000 million VND= 2.470 million US$ /year

Finally the Table below shows the summary.

Table 5-2-4 Results

Economic benefit Financial benefit

1. Decrease of outage duration 53,512 US$/y 19,563 US$/y

2. Improve of maximum average capacity

rate in the substation

0.939mil.US$/y

（Total 18.78MUS$:

20 years)

0.939mil.US$/y

（Total 18.78MUS$:

20 years)

3. Decrease of loss

(technical loss)


532,476 US$/y

1,074,431 US$/y

532,476 US$/y

1,074,431 US$/y

4. Solar Power Generation 5,458 US$/y 5,458 US$/y

5. Peak cut by DR

(Decrease of sales caused by peak-cut)

(Power purchase at the peak time)

-711,713 US$/y

6.885 MUS$/y

-711,713 US$/y

2.470 MUS$/y


5-11

5.2.2 Financial Analysis and Economic Analysis

1) Financial Analysis

FIRR is an indicator that shows if the project is feasible mainly from an implementation agency’s

viewpoint.

(1) Financial benefits and costs

Financial benefits and costs are as follows:

(Costs)

Total cost: 40.98 MUS$ (= total cost － contingency)

Construction period： 2 years（ 2013-2014）

Project period： 20 years（ 2015-2034）

As O&M cost, a 1% of the total cost will be spent every year.

(Benefits)

Decrease of power failure: 19,563 US$/ y

Improve of maximum average capacity rate of the substation : 0.939 MUS$/y

Decrease of loss

technical loss : 532,476 US$/y

non-technical loss : 1,074,431 US$/y

Solar power generation : 5,458 US$/y

Peak demand Control by cutting demand

decrease of sales : -711,713 US$/y

power purchase : 2.470 MUS$/y

5-12

(2) FIRR

Fig. 5-2-2

FIRR


unit: million US$

Year Activities Construction O&M Reduction of

Outage Duration

Saving of Banks

Reduction of Tech Loss

Reduction of non-tech

Loss Solar Power Peak Cut

decreae sales caused by Peakcut

2010 2011 2012 2013 construction 12.294 12.294 0.000 -12.294 2014 construction 28.686 28.686 0.000 -28.686 2015 commissioning 0.41 0.41 0.0195 0.939 0.194 0.392 0.00273 2.47 -0.71100 3.306 2.896 2016 0.41 0.41 0.0195 0.939 0.194 0.392 0.00273 2.47 -0.71100 3.306 2.896 2017 0.41 0.41 0.0195 0.939 0.194 0.392 0.00273 2.47 -0.71100 3.306 2.896 2018 0.41 0.41 0.0195 0.939 0.194 0.392 0.00273 2.47 -0.71100 3.306 2.896 2019 0.41 0.41 0.0195 0.939 0.194 0.392 0.00273 2.47 -0.71100 3.306 2.896 2020 0.41 0.41 0.0195 0.939 0.194 0.392 0.00273 2.47 -0.71100 3.306 2.896 2021 0.41 0.41 0.0195 0.939 0.194 0.392 0.00273 2.47 -0.71100 3.306 2.896 2022 0.41 0.41 0.0195 0.939 0.194 0.392 0.00273 2.47 -0.71100 3.306 2.896 2023 0.41 0.41 0.0195 0.939 0.194 0.392 0.00273 2.47 -0.71100 3.306 2.896 2024 0.41 0.41 0.0195 0.939 0.194 0.392 0.00273 2.47 -0.71100 3.306 2.896 2025 0.41 0.41 0.0195 0.939 0.194 0.392 0.00273 2.47 -0.71100 3.306 2.896 2026 0.41 0.41 0.0195 0.939 0.194 0.392 0.00273 2.47 -0.71100 3.306 2.896 2027 0.41 0.41 0.0195 0.939 0.194 0.392 0.00273 2.47 -0.71100 3.306 2.896 2028 0.41 0.41 0.0195 0.939 0.194 0.392 0.00273 2.47 -0.71100 3.306 2.896 2029 0.41 0.41 0.0195 0.939 0.194 0.392 0.00273 2.47 -0.71100 3.306 2.896 2030 0.41 0.41 0.0195 0.939 0.194 0.392 0.00273 2.47 -0.71100 3.306 2.896 2031 0.41 0.41 0.0195 0.939 0.194 0.392 0.00273 2.47 -0.71100 3.306 2.896 2032 0.41 0.41 0.0195 0.939 0.194 0.392 0.00273 2.47 -0.71100 3.306 2.896 2033 0.41 0.41 0.0195 0.939 0.194 0.392 0.00273 2.47 -0.71100 3.306 2.896 2034 0.41 0.41 0.0195 0.939 0.194 0.392 0.00273 2.47 -0.71100 3.306 2.896

40.98 8.20 49.176 0.39 18.78 3.88 7.84 0.0546 49.4 -14.220 66.125 16.949

IRR= 3.44%

(b)-(a) Cost Total cost

(a)

Benefit Total benefit

(b)

5-13

FIRR is 6.90%.

Viability of the project is reviewed with a newly launched long term bond. On January 2010, the

Government of Vietnam successfully issued a 1,000 MUS$ bond with a 6.95% interest rate, a 10

year duration period. When the Study Team estimates NPV (Net Present Value) with a rate of 6.95%,

it is estimated -0.134 MUS$. As FIRR is lower than 6.95% and NPV is a negative, viability of the

project is not secured.

(3) Sensitivity analysis

Viability will change with the following conditions.

Increase of investment : Initial investment increases by 10%.

Increase of cost: O&M and cost increases by 10%.

Increase of benefit: An unit price of power purchase decreases by 10%.

Table 5-2-5 Sensitivity Analysis

IRR NPV

（discount rate=6.95%）

Base case 6.90% -0.13 MUS$

Initial investment increases by 10% 6.53% -1.28 MUS$

O&M cost increases by 10% 6.78% -0.51 MUS$

Unit price of power purchase

decreases by 10%

6.51% -1.28 MUS$


5-14

2) Economic Analysis

EIRR is an indicator that shows if the project is feasible not only from an implementation agency’s

viewpoint but also from a national economy’s viewpoint.

(1) Economic benefits and costs

Economic benefits and costs are as follows:

(Costs)

Total cost: 34.09 MUS$ (= total cost - contingency - taxes)

Construction period： 2 years（ 2013-2014）

Project period： 20 years（ 2015-2034）

As O&M cost, a 1% of the total cost will be spent every year.

(Benefits)

Decrease of power failure: 53,512 US$/ y

Improve of maximum average capacity rate of the substation : 0.939 MUS$/y

Decrease of loss :

technical loss : 532,476 US$/y

non-technical loss : 1,074,431 US$/y

Solar power generation : 5,458 US$/y

Peak demand control by cutting demand :

decrease of sales : -711,713 US$/y

power purchase : 6.885 MUS$/y

5-15

(2) EIRR

Fig. 5-2-3 EIRR


unit: MUS$

Year Activities Construction O&M Reduction of

Outage Duration Saving of

Banks Reduction of

Tech Loss Reduction of

non-tech Loss

Solar Power Peak Cut decreae sales

caused by Peakcut

2010 2011 2012 2013 construction 10.227 10.227 0.000 -10.227 2014 construction 23.863 23.863 0.000 -23.863 2015 commissioning 0.34 0.34 0.05351 0.939 0.532 1.075 0.00273 6.885 -0.71100 8.776 8.435 2016 0.34 0.34 0.05351 0.939 0.532 1.075 0.00273 6.885 -0.71100 8.776 8.435 2017 0.34 0.34 0.05351 0.939 0.532 1.075 0.00273 6.885 -0.71100 8.776 8.435 2018 0.34 0.34 0.05351 0.939 0.532 1.075 0.00273 6.885 -0.71100 8.776 8.435 2019 0.34 0.34 0.05351 0.939 0.532 1.075 0.00273 6.885 -0.71100 8.776 8.435 2020 0.34 0.34 0.05351 0.939 0.532 1.075 0.00273 6.885 -0.71100 8.776 8.435 2021 0.34 0.34 0.05351 0.939 0.532 1.075 0.00273 6.885 -0.71100 8.776 8.435 2022 0.34 0.34 0.05351 0.939 0.532 1.075 0.00273 6.885 -0.71100 8.776 8.435 2023 0.34 0.34 0.05351 0.939 0.532 1.075 0.00273 6.885 -0.71100 8.776 8.435 2024 0.34 0.34 0.05351 0.939 0.532 1.075 0.00273 6.885 -0.71100 8.776 8.435 2025 0.34 0.34 0.05351 0.939 0.532 1.075 0.00273 6.885 -0.71100 8.776 8.435 2026 0.34 0.34 0.05351 0.939 0.532 1.075 0.00273 6.885 -0.71100 8.776 8.435 2027 0.34 0.34 0.05351 0.939 0.532 1.075 0.00273 6.885 -0.71100 8.776 8.435 2028 0.34 0.34 0.05351 0.939 0.532 1.075 0.00273 6.885 -0.71100 8.776 8.435 2029 0.34 0.34 0.05351 0.939 0.532 1.075 0.00273 6.885 -0.71100 8.776 8.435 2030 0.34 0.34 0.05351 0.939 0.532 1.075 0.00273 6.885 -0.71100 8.776 8.435 2031 0.34 0.34 0.05351 0.939 0.532 1.075 0.00273 6.885 -0.71100 8.776 8.435 2032 0.34 0.34 0.05351 0.939 0.532 1.075 0.00273 6.885 -0.71100 8.776 8.435 2033 0.34 0.34 0.05351 0.939 0.532 1.075 0.00273 6.885 -0.71100 8.776 8.435 2034 0.34 0.34 0.05351 0.939 0.532 1.075 0.00273 6.885 -0.71100 8.776 8.435

34.09 6.82 40.908 1.0702 18.78 10.64 21.5 0.0546 137.7 -14.22 175.525 134.617

IRR= 22.78%

(b)-(a) Cost Total cost

(a)

Benefit total benefit

(b)

5-16

EIRR is 22.78%.

Viability of the project is reviewed with a 10.0 % of opportunity cost. This 10.0 % is a popular

discount rate World Bank or other International Organization often apply in evaluating a feasibility

of a project from a overall economic viewpoint. When the Study Team estimates NPV with a rate of

10.0 %, it is estimated +30.35 MUS$. As EIRR is higher than 10.0% and NPV is a positive,

viability of the project is confirmed.

(3) Sensitivity analysis

Viability will change with the following conditions.

Increase of investment: Initial investment increases by 10%.

Increase of cost: O&M cost increases by 10%.

Increase of benefit: Construction cost of a new gas turbine power plant decreases by 10%.

Table 5-2-6 Sensitivity Analysis

EIRR NPV

(discount rate=10.0%)

Base case 22.79 % +30.35 MUS$

Initial investment increases by 10% 20.69% +27.43 MUS$

O&M cost increases by 10% 22.69% +30.09 MUS$

Construction cost of a new gas turbine

power plant decreases by 10% 20.90% +25.49 MUS$


3) Conclusion

At present nationals in Vietnam are suffering inconveniences caused by power shortage. With regard to

FIRR, it does not exceed the hurdle rate of 6.95% but EIRR is bigger than a hurdle rate of 10%.

It seems at a first glance that a project viability of a project does not lie in this project. However it is

necessary to recall that originally the project does not aim to construct a new distribution line but aim to

improve a loss of power failure etc in the existing distribution lines. In other words, the project will help

to improve a quality of power rather than increase power supply. Therefore, profitability of the project is

not so big.

Moreover the project will be expected to contribute a lot to a national economy because people in the

country can go on economic activities without worrying about power failure. Especially demand control

5-17

through AMR in peak time will help to save a huge amount of construction of a new power plant.

Thus the project will not be evaluated only by FIRR but also by its impact on national economy.

6-1

Chapter 6 Planned Project Schedule

Regarding fund source such as bank loan etc, the comparison was analyzed in Chapter 9, so that

Japanese ODA loan is suitable for this project.

The tentative implementation schedules for Japanese ODA loan are estimated as shown in Fig 6-1 and

Table 6.1 based on experiences. In case of bank loan or Grant, the schedule can be more shortened due to

shortening preparation and engineering service period.

Fig. 6-1 Implementation Schedule on Japanese ODA loan

Item 2011 2012 2013 2014 2015

Preparation

Basic design and HCMC PC/ JICA appraisal

Approval by GOJ / GOV

E/N, L/A

Selection of consultant

Engineering Service

Detailed Design

*Tendering Stage

Selection of Contractor

** Construction

Design

Manufacturing

Installation and test

Commencement


6-2

Table 6-1 Explanation of Implementation Items

Stage Item Scope

Tendering Stage

Preparation Work (1) Preparation of implementation schedule (2) Preparation of scope of work (3) Coordination for bidding mode and currency

Preparation of Bidding Document

(1) Instruction to bidder (2) General condition (3) Special condition (4) Technical specification (5) Pricing schedule (6) Technical schedule (7) Bidding drawing

Promoting PQ (1) Making PQ documents such as experience, personnel

expertise, production capacity and financial capability (2) PQ evaluation

Bid Evaluation (1) Technical evaluation (2) Commercial evaluation (3) Contract negotiation

Construction Stage

Preparation of Power Interruption Plan

(1) Scheduling construction and coordination with customers

Project Management

(1) Periodical meeting and report (Monthly report for Power Utility)

(2) Management of progress and payment (3) Checking and approval for drawings and documents (4) Review and approval of the programs for manufacture

and delivery (5) Performance for factory tests and pre-shipment

inspections

Construction Supervision

(1) Construction supervision and safety management (2) Witness acceptance test and report to Power Utility (3) Check the commissioning test procedures and witness it

with Power Utility

Others

(1) Assistance of Training for O&M (in Japan and in Vietnam)

(2) Preparation for the List of Defects (3) Completion Report with As-built Drawings and O&M

Manuals


7-1

Chapter 7 Implementing Organization

7.1 Implementing Organization

The implementing organization is introduced as shown in Fig 7-1.

Fig 7-1 Implementation organization

MPI MOIT

EVN IE

EVN HCMC

International

Relation Dept,

Material &

Import-Export

Dept,

Planning

Dept,

Engineering

Dept,

Investment

management

Dept,

Phu Tho Power

Company

Implementing company

Counterpart

O&M

7-2

7.2 Competence of the Organization

The sector of this project is an electric power sector and the related organization is introduced as

follows.

7.2.1 MPI

MPI is mainly to make the National Plan in Vietnam and to promote ODA loan as counterpart for

oversea countries. MPI also make the priority in a lot of candidates for ODA.

7.2.2 MOIT

The major role of MOIT is to make and establish the policy of all kind of Industries including

Power sector. Regarding smart grid, MOIT is in charge of planning the new law and policy for

renewable energy.

7.2.3 EVN head office

EVN which is a national organization is governing the electric power sector of Vietnam under the

supervisor and management of MOIT.

EVN is performing directly and indirectly most of the power generation, transmission and

distribution both in wholesale and retail supply of electric power. Moreover, EVN holds, as a holding

company, some subsidiaries, and those subsidiaries are classified into the direct control companies

and joint venture companies.

7.2.4 IE

The role of IE is mainly to implement the forecast of power supply etc and to develop new

technology for power sector including renewable energy.

7.2.5 EVN HCMC head office

EVN HCMC is an independent accounting enterprise, belonging to EVN and performing the

electricity supply over HCMC area of 15 Power Companies. EVN HCMC is main duties are sales

of power, distribution of power network system up to 110kV, performance of such power

7-3

engineering services as survey, design, testing, repairs, manufacturing, supply civil works,

performance of information services and some other tasks assigned by EVN.

7.2.6 Phu Tho Power Company

There are 15 Power Companies under EVN HCMC. One of them is Phu Tho Power Company. The

roles of Phu Tho Power Company are to manage power supply of the District 10 and District 11 and

to collect the tariff. In addition, Phu Tho Power Company implements the operation and

maintenance after the construction of projects.

8-1

Chapter 8 Technical Advantages of Japanese

Company

8.1 Entry Method and Form of Japanese Company

The following method and form are considered as the entry of Japanese company.

To receive the order after tendering and supply the equipment after contract

To invest to operation and maintenance company after commencement of this project

To invest local manufacturer in order to overcome high competition

8.2 International Competitive Ability of Japanese Company

8.2.1 DAS

Concerning reliability of power supply, higher technology has been already existed in Japan.

There is strong position compare with other countries.

Distribution network technology in Japan has progressed to solve a lot of subjects since 1960.

DAS was also same, it was kept progressing for improvement of supply reliability and efficiently operation

of equipment.

This DAS applied voltage type. There is a few countries to apply this type, but this voltage type of

distribution automation should be definitely better technology than the others. The advantages are;

Judge and split for failure section can be applied without CPU and distribution lines.

System upgrade can be applied step by step, if necessary.

Initial cost should be lower than current type which is introduced in Europe.

As of now, it is still continuing to progress for technical innovation by DAS business in Japan.

Combine advanced DAS core technology of Japan and inexpensive distribution network equipment which

made in China can create advantage of DAS.

8-2

8.2.2 AMR System


Advanced AMR system has been already developed by Japanese companies based on existing higher

technology.

This advanced AMR system can realize two way communications with customers such as DR and control

internal switch in smart meter as well as measure power consumption at the place from far away.

Having proof experiment, corporate with NEDO and the state government of New Mexico, proof

experiment has already started that how much effect and influence will be occurred by realizing DR which

is difficult to test in Japan.

This core technology can be applied in this project as well, so that Japanese company can stand strong

position and develop lower cost compare with the other country.

8.2.3 EMS


Advanced EMS has been already developed by Japanese companies based on existing higher technology.

This Advanced EMS can corporate efficiently between many kind of power supply such as solar power and

wind power within smart grid and storage battery. And it is possible to be realized higher supply reliability

and distribution network operation.

Moreover, Curb on fluctuations equipment with storage battery which is used for to prevent influence from

sudden out put fluctuation of PV system, has already developed by Japanese companies.

Relating this technology, proof experiment which will be understood effect and influence on distribution

network in Miyakojima Island by install PV system, has already started by independent type of distribution

network in Miyakojima Island of The Okinawa Electric Power Company, Inc.

This technology can be applied in this project as well, so that Japanese company can stand strong position

and develop lower cost compare with the other country.

8.2.4 Solar Power

Temperature of HCMC is very hot, so that the panel of crystal silicon type with high efficiency can not be

applied to HCMC even though Japanese company has excellent competence. The panel of silicon

amorphous type is proposed in this report due to high temperature characteristics and low cost but other

8-3

foreign manufactures can make easily. In order to get higher power in the same space, hybrid type of

crystal silicon and silicon amorphous will be recommendable in detail design. In this case, Japanese

company can be applied with high competence.

As for battery, Lithium Ion battery is recommended in this report and the development has been carried out

in many countries. Japan also has developed as Japanese government projects, so that the high capacity

type for storage of power will be able to get high competence.

Furthermore, Japanese company has high competence for the inverter for solar and battery due to high

efficiency, high characteristics and familiarity to DAS.

8.2.5 Integrated System

Under becoming aggressively for activity on smart grid, government of every country and every standard

parties also aggressively involve to proceed standardization of equipments.

In Japan, ministry of economy, trade & industry put target to standardize in international and selected “7

Project and 26 items” as important items to keep strong position of Japanese companies.

They put target to be established within three years.

There are 7projects as shown below.

1) WASA

2) Storage battery for distribution network

3) Control of distribution network

4) DR

5) Storage battery for consumer side

6) EV

7) AMI

There are all of necessary technologies in these projects as below.

1) DAS

2) DR network

3) Wide access communication for meters

4) Short distance communication for meters

5) Optimized management for storage battery for distribution

8-4

After fix international standard, Japanese companies can be stronger position for cost competitiveness.

In case that this proposed smart grid will be applied to Vietnam, the system and communication network

can be applied to future technology such as HA, battery by EV etc, so that Japanese company can keep the

high competence as the supplier of the system and communication network.

8.3 Necessary Countermeasure to Obtain the Contract by Japanese

Company

The priority of Vietnam for the smart grid project is lower than the current investment such as power

generation, construction of transmission line / substation and construction of distribution feeder, so that the

investment will be limited.

In case of EVN HCMC, the income is around 800 MUS$ in 2009. The investment of this project is around

40 MUS$ which is not so large as Japan but the project cost means around 5% of the income as EVN

HCMC, so that long term to realize this project will be needed due to other high priority projects. This is

normal case for new project because client does not feel the convenience and necessity due to no

experience.

In order to overcome this blockade, the support of Japanese government such as Demonstration test project

supported by NEDO is needed to apply for the model area as pilot project.

After the pilot project, EVN can understand the necessity and feel the benefits, so that the system using

Japanese excellent technology can be expanded to other areas of EVN HCMC and other cities. Moreover,

this system will be expected to expand to other Asian countries and become de-facto standard.

Korea has already applied DAS project in Hai Phong as Grant and AMR project in Hanoi as also Grant. As

for Solar system, Energy Assistance France and Schneider have applied the BOT pilot project to Quang

Binh province in central Vietnam. Competition between foreign countries and Japan are very hard but these

competitive countries proposed single function as one of smart grid system. Japan can propose all of

functions in smart grid project based on a lot of experience and technology, so that the effect for energy

efficiency in Vietnam becomes much better.

In order to keep the highest position in smart grid system, it is important to obtain the initiative with high

speed. Therefore, Japanese support (ex: Demonstration test project supported by NEDO) shall be quickly

applied for Vietnam as pilot project.

9-1

Chapter 9 Financial Outlook

9.1 Fund Source and Funding Plan

In this chapter, a candidate fund source, type of fund, its availability and feasibility will be reviewed. And it

presumes that an implementation agency is responsible to raise funds and invest the project.

9.1.1 Fund Source

1) General outline

Generally there are two types of funds when an implementation agency raises a fund outside the

company: i.e. borrowing from commercial banks or issue a bond at the monetary market of Vietnam.

On November 2010, a Base Interest Rate (VND) of the State Bank of Vietnam is 9%. Followed by this, a

corporate lending rate is 17-18% (VND), its repayment year is 1-3 years.

Sovereign bond is a typical indicator that shows a country-risk of the country concerned. On December

2010, Moody’s downgraded the rating of a Vietnamese long term Sovereign bond (foreign currency) for

fear of its vulnerable banking system in future, as B1, down from Ba3. For the same reason , in the same

month, S&P also downgraded Vietnam as BB-, down from BB. When a private company in Vietnam

wants to issue a corporate bond, its interest rate will be higher than that of a state bond because

credibility of a corporate company will be less than that of the state. After a risk premium is charged on a

corporate bond, its terms of conditions will be the same of that of borrowing.

Note: With regard to rating, Moody’s grades 9 ratings (Aaa to C). Ba3 is the fourth from the best (Aaa)

and its current prospect is as ‘negative’. S&P grades 8 ratings (AAA to CC). BB is the fifth from

the best (AAA) and its current prospect was ‘negative’.

In contrast, ODA loan tends to have a longer repayment period and a lower interest rate. It means that an

annual financial burden of ODA loan is not so big as that of borrowing and a bond. Moreover in case of

Grant Aid, an implementation agency does not have any financial obligations.

2) Necessity of Financial Guarantee

The study team interviewed a few Japanese and European banks who have a branch in Vietnam and

asked what kind of loan condition will be provided to the project while explaining the project. Then the

study team had the following comments:

9-2

(A) Stands for comment from Japanese banks (B) Stands for comment from European banks

Regarding a loan condition, an interest rate will be determined based on a country risk, a financial

condition of an implementation agency, feasibility of a project and so on. (A), (B)

From a view of risk management, it is hard to extend a credit to a company in Vietnam

unconditionally. Guarantee is a must condition. (A), (B)

When a financial intermediary extends a loan to a project, it expects that a scale of a project is

bigger than more than a few million US$ (ex. 300-500 million US$.) When a project is less than

100 million US$, a financial intermediary is reluctant to provide a loan because its scale is too

small. (B)

A long term credit may be not available in Vietnam. (A)

Almost all financial intermediaries answered that they needed guarantees in extending a credit to a

private company in Vietnam. In this project, a guarantor may be either EVN as a parent company or the

Government. With regard to a guarantee of the Government, Law on Public Debt Management

（No.29/2009/QH12）was enacted in 2009. In this Law, Article 34 defines a conditions of a

government guarantee, stating that a foreign loan under a loan agreement is valued at US$ 50 million

equivalent or higher, the value of issued international bonds is US$ 100 million equivalent or higher and

within the Government’s annual commercial loan limits and foreign borrowing guarantee, except loans

specified in Clause 4. Article 33 of this Law; the debt payment period is at least 10 years and borrowing

or issuance conditions conform with market conditions and international practice. Meanwhile it is not

clear whether EVN recently approved a guarantee for any projects or subsidiaries.

In case of ODA scheme, it also needs a guarantee from the Government. ODA scheme, when confirmed

that an implementation agency obtains a guarantee from the Government, will provide a fund.

3) Conditions of export credit

When it applies an Export Credit, it needs to pay a risk premium as well as an interest. Moreover banks

who co-finance with JBIC hedge risks by buying insurance from such insurance organizations as NEXI.

4) Other Conditions

Aside from borrowings, bonds and ODA, fund is considered to be other scheme. Moreover PPP is one

option however an implementation agency for the project was not so familiar with this scheme that it has

not reviewed it.

9-3

9.2 Review on Availability

Review on candidate fund schemes and their availability is as follows.

(1) Borrowing from banks

(2) Export credit (buyers’ credit)

(3) Issue a bond

(4) ODA Loan (Grant Aide)

(5) ODA Loan (Yen Loan)

9-4

1) Borrowing from banks

Implementation agency requests a borrowing from commercial banks. Loan in terms of VND, US$ are

popular now.


Lender of a loan: Lender is a commercial bank.

Major condition: As of November 2010, a deposit rate (VND) is more than 12% and a corporate lending

rate (VND) is 17-8%, its repayment period will be less than around 3 years. Likewise

VND, a deposit rate in terms US$ is 4.5% and it is not officially announced but a

corporate lending rate (US$) will be estimated more than 10%. Its repayment period is

also estimated 1-3 years.

Other conditions: almost all banks request a guarantee of the Government to an implementation agency

for borrowing.

Availability / Feasibility: borrowing may be available provided that an implementation agency obtains a

guarantee. However an annual financial burden will be so heavy that the project

will not be feasible.

Fig. 9-2-1 Borrowing

(implementation agency)

Vietnam

JICA/JBIC

Japan

Commercial Bank

Commercial bank

Commercial Bank in Vietnam Provides a loan to PC

Power Company

9-5

2) Export Credit (Buyers’ Credit)

Export credit is a direct loan provided to a foreign importer for financing the import of Japanese

manufacturers and makers. In case that an importer wants to buy goods or technical services from Japan,

JBIC is responsible to provide such an export loan.

Fig. 9-2-2 Export Credit


Lender of a loan: JBIC and commercial banks provide a loan for export portion. Both JBIC and

commercial banks co-finance to an implementation agency.

Major condition: interest rate and its repayment period will be determined in accordance with OECD

Arrangement on Guidelines for Officially Support Export Credit. According to JBIC

Official website, a standard loan condition of export credit as of November 2010 will

be that a composite interest rate between JBIC and co-financed banks: 1.43% (JPY),

repayment period: more than 8.5 years. Moreover a risk premium rate will also be

determined based on the OECD Arrangement.

It is noted that an export credit does not provide 100% to the project but has its ceilings.

For remaining portion that is not covered by an export credit, an implementation

agency is responsible to raise funds by itself.

Other conditions: almost all banks request a guarantee of the Government to an implementation agency

for borrowing.

Availability / Feasibility: Export credit will be available as the project has to import goods and facilities

such as RMU and AMR from foreign countries. When it obtains a guarantee

from the Government, an implementation agency has to follow Law on Public

Debt Management and meet certain requirements stated in the Law.


Vietnam

JBIC

JBIC extends a loan to HCMC PC with Commercial banks

Commercial Bank

Commercial bank extends a loan to HCMC PC in collaboration with JBIC

Bank

Japan

Power Company

9-6

a standard repayment period of export credit is less than 10 years. Then an

annual financial burden during the period of repayment will become quite heavy.

For cash flow, please refer to the section. 9.2.

3) Bond

An implementation agency issues a bond.

Fig. 9-2-3 Bond


Lender of a loan: Lender is an investor who buys a bond at the market.

Major condition: a risk premium will be placed on the interest rate, reflecting credibility of an

implementation agency. Recent example in Vietnam shows that an interest rate: 14-

15% (VND), repayment period: 5-10 years.

Other conditions: a guarantee is required.

Availability / Feasibility: it is possible to issue a bond after an implementation agency obtains a

guarantee. However an annual financial burden will be so heavy that the

project will not be feasible. For reference it is reported that the Government

of Vietnam approved for EVN to issue an overseas bond of 1,000 MUS$ on

July 2010. However EVN is said to give up issuing an overseas bond for the

time being due to a recent unfavorable bond market condition.


Vietnam

JICA/JBIC

Japan

HCMC PC Issues a bond or a stock at the market

Commercial Bank

HCMC PC uses its retained earnings for the project

Monetary market

Power Company

9-7

4) ODA Loan (Grant Aide)

ODA is broadly divided into a bilateral aid and a multilateral aid. Following two ODA schemes belong

to the bilateral aid. Grant Aide provides a fund to the Government without the obligation of repayment

and an implementation agency receives a grant from the Government.

Fig. 9-2-4 ODA Loan (Grant Aide)


Provider of a loan: JICA provides a grant.

Major condition: It does not need any financial obligation to an implementation agency. However it is

noted the amount to be provided is limited to around 3 MUS$.

Other conditions: Procedure of ODA regulates that the Government officially requests ODA to the

Government of Japan to appraise the project. Therefore an implementation agency

needs to obtain an approval from the Government and the Government requests the

Government to Japan to appraise the project.

Availability / Feasibility: Grant will be applicable when the Government of Vietnam officially requests

the Government of Japan to appraise the project. However a scale of a project is

limited because only 3 MUS$ is available in this scheme.


Vietnam Government of Vietnam

JICA

Japan Government of Japan

JICA concludes G/A and grants to HCMC PC

Gov. of Vietnam requests a grant to Gov. of Japan Both governments conclude Exchange Notes (E/N)

prior to Grant Agreement (G/A).

Power company

9-8

5) ODA Loan (Yen Loan)

Yen Loan is a bilateral loan but unlike grant aide, it requests an implementation agency to repay a loan

later.

Fig. 9-2-5 ODA Loan (Yen Loan)


Provider of a loan: JICA provides a loan.

Major condition: Yen Loan is extended to an implementation agency. According to JICA Official website,

Loan Condition of Yen Loan as of November 2010 is as follows.

Interest rate 1.2% (Yen), repayment period: 30year, grant period: 10 year

As ODA Loan is defined to cover up to 85% of the total project cost, remaining portion

will be covered by an implementation agency.

Other conditions: Procedure of ODA regulates that the Government officially requests ODA to the

Government of Japan to appraise the project. Therefore an implementation agency

needs to obtain an approval from the Government and the Government requests the

Government to Japan to appraise the project.

Availability / Feasibility: When a project is approved by the Government as a ODA project, this scheme

will be applicable. Moreover a loan condition is not so heavy as that of other

funding schemes, it is most feasible.


Vietnam Government of Vietnam

JICA

Japan Government of Japan

JICA concludes L/A and extends a ODA Loan to HCMC PC

Gov. of Vietnam requests a Loan to Gov. of Japan. Both Governments conclude Exchange Notes (E/N)

prior to Loan Agreement (L/A).

Bank

Power company

9-9

6) Conclusion

The study team explained these fund schemes to EVN and PC Company. However they do not say

clearly which fund scheme will be preferable or not. As for EVN and PC company, they have a will to

implement the project. However they do not to want to worsen their financial conditions by applying a

new project since EVN is said to be suffering an accumulating financial loss. Moreover they are not

familiar with such schemes as PPP so that they do not review it.

The Study Team explained the five fund schemes. Summary is shown in the Table 9-1. As for an

implementation agency, it first considers if a loan condition such as interest and repayment period is

preferable or not. Next, it considers such qualitative factors as necessity of guarantee. Borrowing from

banks and issue of bond will lead to a big annual financial burden to an implementation agency. Then an

implementation agency may not choose such fund schemes. As a result, either Export Credit or ODA

Loan (Yen Loan) will be applicable to the project. With regard to a grant, ODA (Grant Aide) is also

applicable. Cash flow on export credit and cash flow on ODA Loan (Yen Loan) will be reviewed in the

next section.

9-10

Table 9-2-1 Fund Source and Availability

Borrowings

Export Credit

（Buyer’s Credit） Bond

O D A

(Grant Aide)

O D A

(Yen Loan)

Scheme Banks provide a loan

Provide a loan to an

importer who imports from

Japanese manufacturers

and makers.

Issue a bond at the

monetary market of

Vietnam

The Gov. of Vietnam

requests a ODA for the

project and JICA appraises

a project

The Gov. of Vietnam

requests a ODA for the

project and JICA appraises

a project

Lender Banks Co-finance by JBIC and

banks Investors JICA JICA

Terms of conditions

-Interest

-Repayment period

-Others

-17-18%（VND）

-1-3 years (approx.)

－

-1.43% (JPY)

-10 years at the maximum

(18 years (at the

maximum) for renewable

energy and water supply

project)

-pay a risk premium

-14-15% (VND)

-5-10years (approx.)

－

No financial obligation

- Amount is 3 million USD

-1.2% (JPY)

-Repayment 30 years,

grant10 years

-85% of the total cost

Other conditions

Guarantee by the

Government is

required

Guarantee by the

Government is required

Guarantee by the


Guarantee by the


Guarantee by the


Annual financial

burden

Financial burden is

the biggest

Financial burden is not so

heavy as borrowings

The same as that of

borrowing －

Financial burden is the

least

Evaluation

×

△

×

△

○

（Note） ×: Bad, △: Available but still not good, ○: Good


9-11

9.3 Cash Flow Analysis

In this section, cash flow is estimated based on benefits and costs shown in Chapter 5 and interest and

principal and so on. As it is obvious that borrowing from banks, bond are not feasible from a financial

viewpoint, the following two types of cash flow are estimated; namely cash flow on export credit and cash

flow on ODA Loan (Yen Loan).

Cash flow in this study is defined as follow:

Annual cash flow

= (benefits – costs）- (interest) - (principle) + (depreciation）

9.3.1 Preconditions

Major preconditions are as follows.

1) Project period: 20 years

Total construction cost: 42.63 MUS$ (including taxes, contingency and price escalation)

2) Total asset: 37.2 MUS$ = 42.63 MUS$ - 5.5 MUS$ (such non-assessable expenses as engineering

service + personnel expenses). Depreciation will start in 2015 for the next 25years.

3) Foreign Exchange Rate: $1＝19,491VND, $1=80.89Yen (Tokyo Mitsubishi UFJ bank as of 29 October,

2010)

4) Borrowings are in terms of Yen.

5) Condition of Buyer’s credit is based on an indication of European bank as of December, 2010.

6) Among total 42.6 MUS$, 31.45 MUS$ (excluding 15% of the total foreign portion) is co-financed by

JBIC and a commercial bank (60% by JBIC and 40% by a commercial bank). It presumes that an

implementation agency secures a remaining amount by itself without asking a borrowing.

7) Repayment period: 12 years

8) Interest rate is determined based on the OECD Guideline. Currently a 1.43% of interest rate (over 8.5

years) is announced as a Standard Loan Condition as of November 2010 in JBIC’s Official Website,

3.28% is determined by adding risk premium.

9-12

9) Moreover an implementation agency is required to pay 1.422 MUS$ as a fee, a commission and an

insurance for a commercial banks paying to NEXI.

10) Condition of ODA Loan: 1.2 % of interest rate, 10 year of concession period and 30 years of repayment

period.

11) Among total 42.6 MUS$, 36.21 MUS$ (85% of 42.6 MUS$) is extended by JICA. It presumes that an

implementation agency secures a remaining amount by itself without asking a borrowing.

Summary is as follows.

Table 9-3-1 Cash Flow

Result Reference

Export Credit

（Buyers’ Credit）

IRR＝4.49％

NPV＝-7.6 MUS＄

(discount rate: 6.95％)

IRR is positive but NPV is negative.

ODA Loan (Yen Loan)

IRR＝9.30％

NPV＝+6.0 MUS＄

(discount rate: 6.95％)

Both IRR and NPV are positive.


9.3.2 Conclusion

Regarding Export Credit, IRR is positive but NPV is negative. As a repayment year is a 12 year, it leads to

a big annual financial burden. Meanwhile ODA Loan, both IRR and NPV are positive. In case of ODA loan,

an implementation agency only pays an interest for the first 10 years. Actual repayment of capital will start

after the eleventh year.

It is noted that it is important to make the best use of depreciation from a view of cash flow management.

An implementation agency has to complete a construction on schedule if it plans to control a cash flow

effectively. An implementation agency is able to minimize annual cash outflow by adding a annual

depreciation to an annual profit of the project and annual repayment scheme.

9-13

Table 9-3-2 Cash Flow (Yen Loan)


単位：百万$

year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 小計(2010-19）

利益（FIRR) - - - -12.3 -28.7 3.9 3.9 3.9 3.9 3.9 -21.4

利払・元本償還 - - - 0.0 0.0 -0.1 -0.4 -0.4 -0.4 -0.4 -1.9

減価償却費 - - - 1.7 1.7 1.7 1.7 1.7 8.5CF －－－ -12.3 -28.7 5.5 5.2 5.2 5.2 5.2 -14.7

単位：百万$

year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 小計(2020-29)

利益（FIRR) 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 39.2

利払・元本償還 -0.4 -0.4 -0.4 -0.4 -0.4 -0.8 -1.7 -1.6 -1.6 -1.6 -9.5

減価償却費 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 17.0CF 5.2 5.2 5.2 5.2 5.2 4.8 4.0 4.0 4.0 4.0 46.7

単位：百万$

year 2030 2031 2032 2033 2034 小計(2030-34）総合計

利益（FIRR) 3.9 3.9 3.9 3.9 3.9 19.6 37.4

利払・元本償還 -1.6 -1.6 -1.5 -1.5 -1.5 -7.7 -19.1

減価償却費 1.7 1.7 1.7 1.7 1.7 8.5 34.1CF 4.1 4.1 4.1 4.1 4.1 20.4 52.4

Profit（FIRR)

Interest/princpal

Depreciation

Profit（FIRR)

Interest/princpal

Depreciation

Profit（FIRR)

Interest/princpal

Depreciation

9-14

Table 9-3-3 Cash Flow (Export Credit)


million $

year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (2010-19)

Profit（FIRR) - - - -12.3 -28.7 3.9 3.9 3.9 3.9 3.9 -21.4

Interest/Princpal/Insurance etc. - - -1.4 -0.2 -0.7 -4.1 -4.0 -3.9 -3.8 -3.7 -20.4

Depreciation - - - - - 1.7 1.7 1.7 1.7 1.7 8.5CF －－ -1.4 -12.4 -29.4 1.5 1.6 1.7 1.8 1.9 -33.3

million $

year 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 (2020-29)

Profit（FIRR) 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 39.2

Interest/Princpal/Insurance etc. -3.6 -3.5 -3.4 -3.3 -3.2 0.0 0.0 0.0 0.0 0.0 -17.0

Depreciation 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 1.7 17.0CF 2.0 2.1 2.2 2.3 2.4 5.6 5.6 5.6 5.6 5.6 39.2

million $

year 2030 2031 2032 2033 2034 (2030-34） total

Profit（FIRR) 3.9 3.9 3.9 3.9 3.9 19.6 37.4

Interest/Princpal/Insurance etc. 0.0 0.0 0.0 0.0 0.0 0.0 -37.4

Depreciation 1.7 1.7 1.7 1.7 1.7 8.5 34.1CF 5.6 5.6 5.6 5.6 5.6 28.1 34.0

10-1

Chapter 10 Action Plan and Issues

10.1 Action Plan for Advancing This Project

The following action will be implemented in order to realize this project.

The proposed project will be explained to a lot of related persons in Vietnam through the

workshop in order to know the advantages better.

This model project will be proposed to the demonstration test project supported by NEDO.

After the model project, the system will be expected to expand to other areas by Japanese finance

and technical support. Therefore, the action toward Japanese financing project will be

implemented in parallel.

The problems for advancing this project are as follows.

1) Advanced DAS /AMR

It is told that EVN will aggressively invest for increment of current capacity and automation. And they

may plan to increase price of electricity gradually. So they need to solve chronic and lack of electricity

supply, and it can be expected to install infrastructure that can be realized suitable power supply.

EVN HCMC still dispatches their employee at substation and it is hardly to apply remote control from

SCADA.

The activity to distribution network also same as the above, their employee is dispatch and handling

maintenance job for distribution network and reading electricity usage value by watt-hour meter. In

addition, the outage duration under maintenance and fault is long. It is easy to expect that EVN has to

spend huge number of employee for the maintenance and improve the reliability.

It is very efficient system because Advanced DAS and AMR can reduce their labor and improve the

reliability, and this system can be fit their needs.

However, automation system needs to be applied from upper layer of transmission / distribution network,

so automation for distribution network should put lower priority and late time to apply automation.

Under this consideration, the Advanced DAS will be equipped with SCADA function which can

monitor and control for 110kV primary substations. The Advanced DAS will also be installed in existing

SCADA center and be connected to Phu Tho Power Company with AMR / DR system through Fiber

Optic communication network.

10-2

The Advanced DAS is recommended to be gradually expanded to other power companies and 110kV

primary substations.

2) Solar Power

Selling tariff of renewable energy include solar power sets extremely cheap at present. And assistant for

installation is also poor.

Major renewable energy in Vietnam has been small hydro power until now. But a lot of issues are

occurred by unplanned hydro power development such as cause of flood. It is difficult to advance of

more development. Solar power plant shall have potential substitute of this issues.

Especially southern region include HCMC has good condition of solar radiation all around year, then

adequate for solar power generation. Solar power generation is less impact of environmental than wind

turbine and bio-mass generation. Those do not only install gather panels, but also install decentralize in

urban area. And these panels shall be controlled by smart grid, it shall adequate for coming Vietnamese

renewable energy.

But solar power system is more expensive installation cost than the other renewable energy. It shall need

assistant for installation or contrive of selling tariff. Special low for assistant by government shall need.

10.2 Activity of Related Organization in Vietnam Government

The activities for MPI and MOIT as related organization in Vietnam government are as follows.

10.2.1 Activity of MPI

MPI usually make the government plan for energy policy.

According to the decision of the prime minister “1855/QD-TTg dated on 2007/12/27”, the development

strategy and policy for national energy are as follows.

1) Preparation of energy priority in order to guarantee national energy, Utilization of Vietnam energy

resources, reduction of imported petroleum products, reduction of the export of coal in medium-term,

Increment of petroleum storage.

2) Introduction of market principle in energy price.

10-3

3) High priority development and Acceleration of foreign investment for new renewable energy, Biomass

energy and Nuclear energy

4) Clearness of energy efficiency require and recommendation of energy efficiency equipment and

technology in order to utilize economical and effective energy

5) Energy development and balance of utilization based on Environmental management

10.2.2 Activity of MOIT and EVN

MOIT is advancing to revise the law of energy efficiency which will enforce on 1st January 2011. The

acceleration regulation for renewable energy will be included in the new energy efficiency law. The content

is to subsidize to a part of cost for installation of renewable energy.

EVN as implementation organization has implemented to solve the shortage of power and improve the

reliability as the most important problems. Namely, the construction of power generation and application of

renewable energy has been advanced as the solution of shortage problems for power generation. In addition,

EVN has carried out the reduction of transmission and distribution loss and the development of renewable

energy.

As for improvement of the reliability, the transmission and distribution lines have been constructed so far.

Regarding smart grid, EVN started the pilot projects as single system such as Solar, AMR etc. EVN has

understanding which the power from renewable customers shall be purchased with reasonable tariff and the

tariff will be realized under Vietnam government support. Therefore, the smart grid project shall be

involved with MOIT in order to modify the tariff system and the law.

10.3 Legal and Financial Constraints, etc. of Partner Country

10.3.1 Legal Restriction

1) According to MOIT, there is no legal restriction about the peak cut by the DR.

2) According to EVN, there is no system inter-connection of solar power generation system at the moment.

The solar power generation equipment to be installed under this project will supply electric power to the

transmission and distribution network since the system inter-connection will be made. Technical

requirement for system inter-connection of the renewable energy including solar power is specified in

MOIT Circular No.32/2010-/TT-BCT named "Regulation of Power Distribution System”.

10-4

Moreover, in case that a solar power generator, in the future, sell electricity to a power utility, the unit

prices of such electricity sale to be applied are described in Decision No.73/QD-DTDL of December 30,

2009 promulgated by Electricity Regulatory Authority of MOIT. This regulation is applied when the

small-scale power generation which used renewable energy has system inter-connection. According to

EVN, the unit price for this year is decided in view of small hydropower generation which generation

unit price is cheap, and the unit price is reviewed every year. The unit price is expected to be raised in

about 12 cent/kWh from now on.

10.3.2 Financial Restraint

1) When an implementation agency raises fund for the project, it is requested to obtain a guarantee under

whatever financial scheme it may be. In case that an implementation agency requests the Government

for a guarantee, it has to follow Law on Public Debt Management (No.29 / 2009 / QH12) in which a

foreign loan has to meet a certain requirement defined in this Law.

2) As a newspaper reported that the Government plans to raise a power tariff by 30% in 2011, it is

necessary to raise a tariff towards an appropriate price level. Price hike mentioned above aims to raise a

whole sale tariff as a result it aims to invite more foreign investors to invest power development

programs in Vietnam.

As for a distribution company, a price hike brings good benefits too; first, a distribution company earns

more profit so that it can maintain good financial conditions. Second, it can improve its financial

credibility therefore it can raise fund with a lower interest rate in future.

10.4 Necessity of Additional Detail Analysis

The overview of fundamental policy and activities can be grasped in the survey but it is necessary to carry

out the detail survey and the analysis as follows.

Detail survey for Grant project

Detail survey for Japanese financing project (JICA ODA loan etc) in parallel

Survey for CDM between Vietnam and Japan etc

Annex related to Chapter4

COMPANY QUESTIONNAIRE

HOUSEHOLD QUESTIONNAIRE

Interview with Manufacturing and Enterprise Customers 1～17

Interview with Residential Customers 1～15

COMPANY QUESTIONNAIRE

Interview starting time (AM / PM)

Date (DD/MM/YY)

COMPANY’S NAME:

Address

Phuong (ward) Quan (district)

01 Respondent’s Name

02 Respondent’s Sex Male/Female 03 Respondent’s Position

A. COMPANY PROFILE

11 Which year was your company founded? (Establishment Year)

12 What kind of business

is your company

involved?

(Which industry and what kind of production they make. Please see the reference on the back)

i) Industry (secondary sector)

(Specify) e.g. textile, furniture, food products

ii) Services (tertiary sector)

(Specify) e.g. travel agency, food beverage service, hotel industry

iii) Others (Specify)

13

How many stories

does your company

occupy?

i) One story ii) Two stories iii) Three stories

iv) Four stories v) Five or more (specify)

14 How big is your

company?

i) 0-50m2 ii) 50-100m2 iii) 100-150m2

iv) 150-200m2 v) 200m2 or over (specify)

15

How long is your

company located at

the present address

i) 0-10 years ii) 10-20 years iii) 20-30 years

iv) 30-40 years v) 40-50 years vi) Over 50 years

16 Staff number

i) 1 – 5 staff ii) 6-20 staff iii) 21-50 staff

iv) 51-100 staff v) 101 -300 vi) 301 or more

If there is annual reports, brochure and financial statements (balance sheet, income statement, and cash flow statement). that introduce company profile, above questions can be omitted.

B. FACTS ABOUT ELECTRICITY CONTRACT AND MODE OF PAYMENT

21 How big is the contracted capacity? ampere

22 How does EVN-HCMPC

measure the electricity

usage for the company

i) They come every month to read the meter, and they come back a few days later with a notice for payment.

ii) Others (specify)

23 How does the company pay

for the electricity bill? i) Pay directly to the EVN staff.

ii) Pay through banks’ ATM or Post Office by (cash /

check / credit card).

iii) Pay monthly at EVN Office.

iv) Other (specify)

C. ELECTRICITY USAGE

31 How many times per day do you have power cut?

i) One time ii) Two times

iii) Three times iv) Others (specify)

32 How many hours per day do you have power cut?

i) 0-2 hours in total ii) 2-4 hours in total

iii) 4-6 hours in total iv) 6-8 hours in total

v) Over 8 hours in total

33 When in a day does EVN –HCMPC conduct power cut (or load shedding)?

i) Morning time (dawn to 11 AM)

ii) During noon (11 AM to 1 PM)

iii) Early afternoon (1 to 5 PM)

iv) Evening time (5 to 9 PM)

v) Night time (10PM to dawn)

34 Please describe average electricity consumption per month

kWh

35 Please describe how much your company pays per month for electricity bill (in average)? VND

36 Does your company have a generator to supplement the electricity supply from EVN (or HCMPC)?

i) Yes

kVA ii) No

37 For what does your

company use electricity

most?

i) Air conditioner hrs/day

ii) Room light hrs/day

iii) TV hrs/day

iv) Others (specify)

hrs/day

v) Others (specify)

hrs/day

38 Do you think the current electricity capacity at your company is

enough? i) Yes ii) No

39 Do you think the electricity bill for which your company currently

pays is too expensive? i) Yes ii) No

40 Why do you think so? For those who answer ‘Yes’

i) Because our company actually use the electricity a lot.

ii) Because the electricity bill is unusually higher than for

other expenses.

ii) Because we have to pay the electricity bill anyway even

though there are power cuts or load shedding.


For those who answer ‘No’

v) Because our company actually do not use electricity much.

vi) Because the electricity bill is lower than for other expenses.

vii) Others (specify)

41 Is your company satisfied with the EVN’s current service? i) Yes ii) No

42 Why do you think so? For those who answer ‘Yes’

i) Because the quality of service is good.

ii) Because they supply electricity for 24 hours.

iii) Because the electricity bill costs reasonable (OK).



v) Because the quality of service is not good

vi) Because they often cut electricity supply.

vii) Because the electricity bill costs too much.

viii) Others (specify)

43 Will your company pay more if EVN improves their service? i) Yes ii) No

44 How much can your company afford to pay for the

electricity monthly if EVN improves their service? VND/month

D. SMART GRID

51 Are you OK if EVN must stop air conditioner?

(The other electricity appliances keep running with

stable electricity supply.)

i) 30 min ii) 1 hr iii) No

52 What do you want if EVN must

stop air conditioner?

i) It is OK if EVN gives discount by 10%


E. OTHERS

61 Any other information from the respondent (or staff members)

62 Recorder’s findings and comments

Interview ending time (AM / PM)

Record taken by:(name)

HOUSEHOLD QUESTIONNAIRE

Interview starting time (AM / PM)

Date (DD/MM/YY)

A. BASIC IDENTIFICATION OF RESPONDENT AND HIS/HER FAMILY

01 Respondent’s Name

02 Respondent’s Sex Male/Female 03 Respondent’s Age

04 Respondent’s Occupation

i) Employee ii) Employer iii) Housework iv) Shop owner

v) Trader vi) Worker(laborer) vii) Government staff

viii) Student ix) Unemployed x) Others (specify)

05 How many people live in your house? Adult M F

Child M F

Total M F

06 Address

07 How long have you lived in your present house?


iv) 30-40 years v) 40-50 years vi) > 50 years

08 How many stories does your house have?

i) One story ii) Two stories iii) Three stories

iv) Four stories v) ≥ Five

09 How big is your house?

i) 0-50m2 ii) 50-100m2 iii) 100-150m2

iv) 150-200m2 v) > 200m2

B. HOUSEHOLD EXPENDITURE

11 How many people have jobs among all people living in your house?

i) 0 person ii) 1 persons iii) 2 persons

iv) 3 persons v) 4 persons v) ≥ 5 persons

12 What are your household’s main sources of income?

13

HOUSEHOLD MONTHLY EXPENDITURE (roughly): What do you spend monthly?

i) Food VND

ii) Health VND

iii) Education VND

iv) Water VND

v) Electricity VND

vi) Gas VND

vii) House appliances VND

viii) Land telephone VND

ix) Mobile phone(s) VND

x) Others (specify)

VND

C. FACTS ABOUT ELECTRICITY CONTRACT AND MODE OF PAYMENT

21 How big is the contracted capacity for your house? ampere

22 How does EVN-HCMPC measure the electricity usage at your house?

i) They come every month to read the meter, and they come back a few days later with a notice for payment.


23 How do you pay for the electricity bill?

i) Pay directly to the EVN staff.

ii) Pay through banks’ ATM or Post Office by (cash / check / credit card).

iii) Pay monthly at EVN Office.

iv) Other (specify)

D. ELECTRICITY USAGE

31 For how long do you use electricity in your house?


iv) 30-40 years v) 40-50 years vi) > 50 years

32 How many times per day do you have power cut?

i) None ii) One time iii) Two times

iii) Three times iv) Others (specify)

33 How many hours per day do you have power cut?

i) 0-2 hours in total ii) 2-4 hours in total

iii) 4-6 hours in total iv) 6-8 hours in total

v) > 8 hours in total

34 When in a day do you often have power cut (or load shedding)?

i) Morning time (dawn to 11 AM)

ii) During noon (11 AM to 1 PM)

iii) Early afternoon (1 to 5 PM)

iv) Evening time (5 to 9 PM)

vi) Night time (10PM to dawn)

35 Please describe average electricity consumption per month kWh

36 Do you have a generator to supplement the electricity supply from EVN (or HCMPC)?

i) Yes

kVA ii) No

37

What kind of electrical appliance do you have? (Please identify how many of them they have. Sample: mobile phone*4)

i) Room light ii) Rice cooker

iii) Refrigerator

iv) Microwave / Toaster

v) Table fan

vi) Ceiling fan

vii) Air conditioner viii) VCR/DVD player

ix) TV x) Radio

xi) Iron xii) Hair dryer

xiii) Sewing machine

xiv) Mobile phone

xv) Dehumidifier

xvi) Personal Computer / Family Computer

xvii) Others (specify):

38 How many hours per day do you currently use the electrical appliances?

i) Air conditioner hrs/day

ii) Refrigerator hrs/day

iii) Room light hrs/day

iv) TV (including VCD / DVD watching through TV)

hrs/day

v) Table fan hrs/day

vi) Ceiling fan hrs/day


hrs/day

39 Do you think the current electricity capacity at your house is enough?

i) Yes ii) No

40 Do you think the electricity bill for which you currently pay is too expensive?

i) Yes ii) No

41 Why do you think so?

For those who answer ‘Yes’

i) Because we actually use the electricity a lot.

ii) Because the electricity bill is unusually higher than other expenditures such as water bill and gas.

iii) Because we have to pay the electricity bill anyway even though there are power cuts or load shedding.



v) Because we actually do not use electricity much.

vi) Because the electricity bill is lower than other expenditures such as water bill and gas.


42 Are you satisfied with the current electricity supply? (quality, quantity, hours etc)

i) Yes ii) No

43 Why do you think so?

For those who answer ‘Yes’

i) Because the quality of service is good.

ii) Because they supply electricity for 24 hours.

iii) Because the electricity bill costs reasonable (OK).



v) Because the quality of service is not good

vi) Because they often cut electricity supply.

vii) Because the electricity bill costs too much.

viii) Others (specify)

44 Are you willing to pay more if EVN improves their service in electricity supply?

i) Yes ii) No

45 How much do you like to pay for the electricity monthly, if EVN improves their service in electricity supply?

VND/month

E. SMART GRID

51

Are you OK if EVN must stop air conditioner? (but the other electricity appliances keep running with stable electricity supply.)

i) 30 min ii) 1 hr iii) No

52 What do you want if EVN must stop air conditioner?

i) It is OK if EVN gives discount by 10%


F. OTHERS

61 Any other information from the respondent (or family members)

62 Recorder’s findings and comments

Interview ending time (AM / PM)

Record taken by:(name)

Interview with Manufacturing and Enterprise Customers 1

Company Profile

Industry Amusement park Address Hoa Binh Street, Ward 3, District 11

Interviewee Male Position Vice Director

Establishment 1976 Total area 42 ha No of staff 600

Remarks Opens 7AM to 9PM every day. Entrance fee costs $2, with additional payment for each

attraction. 150,000 people during weekends and holidays, and 3 to 50,000 people during

week days come to the park from HCMC as well as neighboring provinces.

Condition of Electricity Use

Capacity 15kV line comes from EVN to the park. There are 50 units of 50A. 7 transformers with 7

meters.

Electricity consumption 4,000,000 kWh per year Monthly electricity bill

80,000,000,000 VND per

year

Generator There are 7 generators with capacity of 1,000 kVA.

Main use

Electricity is mainly spent for ice making at the ice staking rink, amusement attractions and

other equipment. A/C is used only for offices and restaurants. Lights are turned on during

working hour.

*Restaurants are often used for wedding parties, birthday parties and other events.

Mode of Billing EVN reads the meter and send the invoice

Mode of Payment Bank transfer

Power Outage

It sometimes occurs during morning time for 2 to 4 hours. Power outage does occur very

occasionally. All 7 meters never fall down all at once. There is no power outage in 2010.

Opinions on Current Power Supply and Electricity Cost

Current power supply Sufficient

Current electricity cost

Not expensive

(reason) It needs electricity to provide good quality of service to the

customers. We understand it is our obligation to pay electricity bill, and it

does not matter as we have sufficient revenue.

Current provided service Satisfied (reason) N/A

Willingness to pay more if the quality of EVN’s service becomes improved. Acceptable

Amount of willingness to pay if the quality of EVN’s service becomes improved.

Additional 10％

Ideas on Smart Grid

Disconnecting only A/C Not acceptable

Incentives for disconnecting A/C 10％ discount

Opinion We cannot disconnect A/C in the middle of providing service to the customers. We cannot

imagine doing so, and we cannot do so. We will continue using A/C by activating generators.


Company Profile

Industry Apparel (Garment export / domestic wholesale) Address 3 Thang 2, District 10

Interviewee Male Position Company Owner

Establishment 1996 Total area Total 1,200m2 No of staff Total 200

Remarks Moved to the current place in 2003. There are two complexes: (i) management office cum

working station, and (ii) factory.


Capacity Two phases (40A) for office and three phases (100A) for manufacturing.

Electricity

consumption

Factory: 16,637 kWh (invoiced Jun

2010. Office: 2,638 kWh (do)

Monthly

electricity bill

Factory: 22,711,698 VND.

Office: 5,498,434 VND

Generator One generator of 220 kVA

Main use

Electricity is mainly spent for large scale sewing machine (4 sets) and press iron (2 sets). To

control room temperature, A/C (6 sets) are used for 10 hrs a day (24 hrs at the busy season),

and room lights for 16 hrs from 7:30AM to 11PM. Often use TV, computers and fans too.


Mode of Payment Pay directly with EVN staff when they visit by cash

Power

Outage

There are power outages all of a sudden, which leads to total black out in this area. Such

outages lasted 1 to 1+1/2 hrs, which is less than that of 2009 (2 to 4 hrs) and it became rare.

Power outage often occurs during morning time and midnight.



Current electricity cost Expensive (reason) Feel it is too expensive, but EVN cuts off the power

supply if we do not pay. There is no other choice.

Current provided service Satisfied (reason) It would be good if EVN improves their response to

our telephone calls.



Will pay as required

Ideas on Smart Grid


Incentives for disconnecting A/C ―

Opinion Cannot stop A/C for the equipment to keep running. Like to use generator to keep using A/C.


Company Profile

Industry Beer manufacturing Address Nguyen Chi Thanh, District 10

Interviewee Male Position Mechanical Manager

Establishment Over 50 years ago Total area Over 200m2 No of staff 100 to 300

Remarks Building is 4 stories or over.


Capacity Single phase (220V) and three phases (380V) (two lines).

Electricity consumption 165,076 kWh per month Monthly electricity bill 304,730,000 VND

Generator One generator

Main use Beer tanks (24 hrs), room lights (24 hrs), A/C (8 hrs)


Mode of Payment Money transfer

Power Outage Power outage occasionally occurs around noon for 2 to 4 hours.



Current electricity cost Expensive (reason) Because we use a lot.

Current provided service Satisfied (reason) Because it is available for 24 hrs.



Like to pay more, but hope to be around 270,000,000

VND (10% off).

Ideas on Smart Grid

Disconnecting only A/C Acceptable if it is 30 minutes.

Incentives for disconnecting A/C 10% discount

Opinion ―


Company Profile

Industry Plastic manufacturing Address Lac Long Quan, District 10

Interviewee Male Position General Director’s Assistant

Establishment 1975 Total area 150 to 200m2 No of staff Over 300

Remarks Building is 4 stories or over


Capacity Single phase (220V) and three phases (380V) (two lines)

Electricity consumption 1,398,856 kWh Monthly electricity bill 1,648,922,838 VND


Main use Electricity is spent for plastic manufacturing (24 hrs), room lights (12 hrs), A/C (8 hrs)


Mode of Payment Pay at EVN Office.

Power Outage It occurs midnight up to 2 hours.



Current electricity cost

Expensive (reason) Because we have to pay the electricity bill anyway even


Current provided service Satisfied (reason) Because they supply electricity for 24 hours.



―

Ideas on Smart Grid

Disconnecting only A/C Acceptable if it is 1 hour.


Opinion ―


Company Profile

Industry Telecommunication Address Truong Son, Ward 15, District 10

Interviewee Male Position Administrative Manager

Establishment 2005 Total area 100 to 150m2 No of staff 6 to 20

Remarks Building has 2 stories.


Capacity Single phase (220V, 10-100A)

Electricity consumption 1,460 kWh Monthly electricity bill 2,696,000 VND

Generator None

Main use Room lights (6 hrs), A/C (6 hrs), TV (4 hrs)


Mode of Payment Pay directly with EVN staff when they visit by cash

Power Outage It occurs once a day for 4 to 6 hours. Often in the morning time.



Current electricity cost Expensive (reason) Because we have to pay the electricity bill anyway

even though there are power cuts or load shedding.

Current provided service Satisfied (reason) Because the quality of service is good.

Willingness to pay more if the quality of EVN’s service becomes improved. Not acceptable


Does not want to pay more than we currently do.

Ideas on Smart Grid



Opinion

We are concerned about the affects to the telecommunication equipment and facilities if

power outage repeatedly occurs. They might get broken easily.


Company Profile

Industry Manufacturing Address To Hien Thanh, District 10

Interviewee Male Position Manager of Mechanical Department




Capacity Single phase (220V, 10-100A) and three phase (380V) (two lines).

Electricity consumption 738,177 kWh Monthly electricity bill 1,656,757,894 VND


Main use Electricity is mainly spent for equipment and frozen warehouse for 24 hrs. Also used for

room lights (12 hrs), A/C (8 hrs) and TV (8 hrs).


Mode of Payment Pay at EVN Office

Power Outage Power outage occurs for 4 to 6 hours, around noon.





Current provided service Satisfied (reason) Because electricity is supplied for 24 hours.



Like to pay more, but hope to keep within

1,500,000,000 VND.

Ideas on Smart Grid

Disconnecting only A/C Acceptable if it is 30 minutes


Opinion ―


Company Profile

Industry Medical institution Address Nguyen Chi Thanh, District 10

Interviewee Male Position Personal Manager

Establishment Over 50 years ago Total area Over 200m2 No of staff Over 300

Remarks 4 to 5 storied or over.


Capacity Single phase (220V, 10-100A) and three phases (380V) (two lines)



Main use Electricity is mainly spent for A/C and medical equipment (24 hrs). Also used for room

lights (12 hrs) and TV (8 hrs).


Mode of Payment Pay at EVN Office.

Power Outage Power outage occurs around noon up to 2 hours.



Current electricity cost Expensive (reason) Because we actually use the electricity a lot.

Current provided service Satisfied (reason) Because electricity is supplied for 24 hrs.



Does not matter how much. Will pay as it requires.

Ideas on Smart Grid

Disconnecting only A/C Acceptable if it is within 30 minutes


Opinion ―


Company Profile

Industry Service Address Lu Gia, Ward 15, District 10

Interviewee Male Position Organization Manager

Establishment 20 to 30 years ago Total area 50 to 100m2 No of staff Over 300

Remarks 3 storied.





Main use Electricity is spent for A/C (8 hrs), room lights (12 hrs), and TV (8 hrs).


Mode of Payment Pay at EVN

Power Outage Power outage occurs during morning time up to 2 hours.




Current provided service Satisfied (reason) Because it is supplied for 24 hours.



Like to pay more, but hope to pay 10% less.

Ideas on Smart Grid



Opinion ―


Company Profile

Industry Banking Address Ly Thuong Kiet, District 11

Interviewee Male Position Sales Manager


Remarks Building has 4 or 5 stories, or even more.



Electricity consumption 218,691 kWh Monthly electricity bill 492,542,159VND


Main use Electricity is mainly spent for A/C (12 hrs), room lights (16 hrs), TV (16 hrs), computer (24

hrs).


Mode of Payment Pay at EVN Office

Power Outage Power outage occurs during night time up to 2 hours.




Current provided service Satisfied (reason) Reasonable price



―

Ideas on Smart Grid

Disconnecting only A/C Acceptable if it is 30 minutes.


Opinion ―


Company Profile

Industry Retailer (supermarket) Address Dinh Nghe, District 11

Interviewee Male Position Receptionist

Establishment 2000 Total area Over 200m2 No of staff 100 to 300

Remarks Building has 3 stories


Capacity Single phase (220V, 10-100A) and three phases (380V)



Main use Spent for A/C (12 hrs), room lights (24 hrs), TV (6 hrs), and frozen case (24 hrs)











Like to pay more, but hope the price keeps current

amount.

Ideas on Smart Grid



Opinion ―


Company Profile

Industry Medical institution Address Su Van Hanh, District 10

Interviewee Male Position Organization Officer

Establishment Over 50 years ago Total area Over 200m2 No of staff 100 to 300

Remarks Building has 4 or 5 stories, or even more.





Main use Electricity is spent for A/C (12 hrs), room lights (18 hrs), and medical equipment (12hrs).


Mode of Payment Pay at EVN






Current provided service Satisfied (reason) Because electricity is supplied for 24 hrs.


Amount of willingness to pay if the quality of EVN’s service becomes improved. ―

Ideas on Smart Grid

Disconnecting only A/C Acceptable if it is around 30 minutes


Opinion ―


Company Profile

Industry Telecommunication Address Thanh Thai, District 11

Interviewee Male Position Manager


Remarks Building has 4 to 5 stories or even more.





Main use Electricity is spent for A/C (10 hrs) and room lights (24 hrs)



Power Outage It occurs mostly in the afternoon up to 2 hours.



Current electricity cost Expensive (reason) Because we have to pay the electricity bill anyway even





Ideas on Smart Grid



Opinion ―


Company Profile

Industry Apparel (Garment export) Address Truong Son, Ward 15, District 10

Interviewee Male Position Administrative Manager

Establishment Over 30 to 40 years Total area Over 200m2 No of staff Over 300



Capacity Single phase (220V, 10-100A and three phase (380V) (two lines)



Main use Electricity is spent for A/C (6 hrs), room lights (16 hrs), and sewing machines (700 sets) for

16 hrs.



Power Outage It occurs 6 to 8 hours.








Ideas on Smart Grid

Disconnecting only A/C Acceptable


Opinion ―


Company Profile

Industry Retailer (supermarket) Address 3 Thang 2, District 10

Interviewee Male Position Administrative Officer


Remarks Building has 3 stories




Generator One generator (10,000 kVA)

Main use Electricity is spent for A/C and room lights



Power Outage It occurs around noon.







Ideas on Smart Grid



Opinion ―


Company Profile

Industry Local government institution Address Binh Quoi, District 11

Interviewee Male Position Administrative Officer






Generator None

Main use A/C (12 hrs) and room lights (24 hrs)



Power Outage There is no power outage except repair works.



Current electricity cost Not expensive (reason) We pay as we use.




Does not matter how much. We will pay as required.

Ideas on Smart Grid



Opinion ―


Company Profile

Industry Medical institutions Address Ly Thuong Kiet, District 10 Establishment 1970

Interviewee Male Position Administrative Manager Total area 32,000m2

No of staff Over 1,000

Remarks 27 Depts such as internal, surgery, ophthalmology, obstetrical and gynecology. 700 beds and

1,500 out-patients per day. Staff work on 3 shifts for 8 hours. Day-time shift begins at 7AM

up to 4:30PM. Building has 5 stories.


Capacity 15 kV line (3) and three phases transformer (2) (250kVA and 1,000kVA). Each building has

two meters.

Electricity consumption 200,000 kWh (invoiced Nov

2010) Monthly electricity bill

240,000,000 VND

Generator One generator with 550kVA capacity for emergency unit

Main use

A/C (Management dept 100 sets, emergency unit 200 sets, in-patient dept 150 sets, total 450

sets), room lights and equipment. There are 200 sets of TV mainly in the in-patient dept.

Management dept uses A/C 8 hrs a day, in-patient dept 8 to 12 hrs per day. They change air

from 5AM to 9AM by opening windows (during it A/C is off). Emergency unit use A/C for

24 hours.

Mode of Billing EVN reads the meter and

send the invoice Mode of Payment

Bank transfer (pay twice

monthly)

Power Outage Power distribution never stops as we have both ordinary line and back-up line except

repair works. Repair works are taken place during midnight.

Remarks The electricity cost is invoiced highest in June. It was 265,000,000 VND using 243,000 kWh

invoiced in June 2010 mainly due to the A/C use. The amount of electricity consumption keeps

increasing as we purchase new equipment every year.



Current electricity cost Not expensive (reason) Because we apply flat rate (1,009 VND per kWh).

Current provided service Satisfied (reason) Because the quality of service is good, 24 hours supply,

and we apply flat rate which is cheaper.


Amount of willingness to pay if the quality of EVN’s service becomes improved. 20％ increase

Ideas on Smart Grid

Disconnecting only A/C

Can do so at management dept. We however cannot accept it at out-patient dept and

emergency unit as patients pay the cost for our service.

Opinion One a week is okay. Prior notice as least one day advance is preferred.


Company Profile

Industry Travel agency Address Thanh Thai, Ward 14, District 10

Interviewee Male Position Manager

Establishment 2005 Total area 60m2 No of staff 5

Remarks Run the office on the ground floor of 4-storied residential building.



Electricity consumption 638 kWh (invoiced Oct

2010) Monthly electricity bill

941,239 VND (same

period)

Generator None

Main use A/C (10 hrs), room lights (8 hrs), PC (6 sets) (8 hrs), refrigerator (24 hrs). Also use fan

when necessary.


Mode of Payment Pay directly with EVN staff when they visit

Power

Outage

There is no scheduled power outage occurred except repair works because we live close to

the Ward 14 People’s Committee.



Current electricity cost Not expensive (reason) Because it is applied to everybody.




Like to pay more, but hope to keep the current

amount.

Ideas on Smart Grid

Disconnecting only A/C Acceptable if it is 1 hour


Disconnecting all electricity supply Acceptable if it is 2 hours

Willing to stay disconnected or pay additionally to

recover the electricity immediately.

Choose to pay additionally if it is within

10％ increase.

Opinion ―

Interview with Residential Customers 1

Identity of interviewee and living environment

Interviewee Male Address Ly Thuong Kiet, District 11

Age Born in 1931 Occupation Retired

No of person living Adult 11 (M 5, F 6) Child 7 (M 2, F 5) Total 18 (M 7, F 11)

Living period Over 50 No of story One story Total area 150 to 200 m2

No of those with jobs 6 Their occupations Salary taker, business

Condition of Electricity Use and Household Expenditures

Capacity 220V, 20A Mode of billing EVN reads the meter and send the invoice

Generator None Mode of payment Pay at EVN Office


Power outage Seldom to have Power outages. Within 2 hours if there is any.

Percentage of electricity cost among major household expenditures Approximately 25%

Owned electric appliances and length of use per day

A/C 3 pcs (2 to 3 hrs), room lights (3 hrs), refrigerator 2 pcs (24 hrs), TV 5

sets (1 to 2 hrs), table fan / ceiling fan 10 pcs (5 hrs). Also owns rice cooker,

mobile phone 12 sets and PC.

Other major household expenditures

Food (4.5 mil VND), health (3 mil VND), education (3 mil VND), water (0.12 mil

VND), gas (0.3 mil VND), home appliance (1.5 mil VND), land phone (0.6 mil VND),

and mobile phone (1.5 mil VND)


Current power supply sufficient

Current electricity cost expensive (reason) Because we actually use the electricity a lot.

Current provided service satisfactory (reason) Because the quality of service is good.



Within 4,500,000 VND. Hope the quality becomes

further improved, but do not like to pay more.

Ideas on Smart Grid

Disconnect only A/C Does not matter for 30 minutes or 1 hour.

Incentives for turning off A/C 10％ discount from the current cost

Disconnect all electric appliances. Okay to do so for 1 to 2 hours.

Willing to stay disconnected or pay additionally to recover the electricity immediately.

Choose to stay connected. Cannot afford to

pay additionally.

Opinion

Cannot get disconnected as we need A/C during night time, and room lights and equipment

running during daytime. It is not convenient to get disconnected all electric appliances at

once. We may be able to choose to disconnect A/C only in order to use fan instead. We prefer

to have the Power outage from 2 to 4 in the morning.



Interviewee Male Address 3 Thang 2, Ward 15, District 11

Age Born in 1970 Occupation Retailer of medical equipment


Living period 40 to 50 years No of story 1 Total area 100 to 150 m2

No of those with jobs 6 Their occupations Salary takers, business


Capacity 220V, 10-40A Mode of billing EVN reads the meter and send the invoice

Generator None Mode of payment Pay directly with EVN staff when they visit


Power outage Seldom to have Power outage

Percentage of electricity cost among major household expenditures Approximately 20％


A/C 4 pcs (5 hrs), room light (4 hrs), refrigerator 2 pcs (24 hrs), TV 5 sets (3

hrs), and fan (2 to 4 hrs). Also owns rice cooker, DVD player, iron, mobile

phone 12 sets, and PC.


Food (4.5 mil VND), education (6 mil VND), water (0.2 mil VND), gas (0.5 mil

VND), home appliance (0.3 mil VND), land phone (0.3 mil VND), and mobile

phone (1.2 mil VND)


Current power supply sufficient

Current electricity cost Not expensive (reason) Because we pay as the Government decides.

Current provided service satisfied (reason) Because the quality of service is good, and they supply

electricity for 24 hours.



Does not matter to pay as the Government requires us to

pay.

Ideas on Smart Grid

Disconnect only A/C Does not matter for 30 minutes to 1 hour.

Incentives for turning off A/C 10％ discount

Disconnect all electric appliances. Total disconnection is not acceptable, but 30 minutes may be

okay. We will follow if EVN decides so.

Willing to stay disconnected or pay

additionally to recover the electricity

immediately.

Choose to pay additionally (up to 10％) rather

than staying disconnected.

Opinion Cannot afford to pay additionally over 10％.



Interviewee Male Address Ly Thuong Kiet, District 10

Age Born in 1963 Occupation CEO


Living period 65 years since his parents moved

to the current place No of story 1 Total area 42 m2

No of those with jobs 6 Their occupations Salary taker, small-scale business



Generator Yes (2 horse

power) Mode of payment

Pay directly with EVN staff when they visit or pay

at EVN office.

Electricity consumption

463 kWh (invoiced for Sep 2010) Monthly electricity bill

766,000 VND (invoiced for Sep

2010)

Power outage Scheduled power cut lasted from 7 AM to 6 PM twice a week during dry season (prior

notice was sent). Otherwise all-of-a-sudden power outage lasts within two hours.



A/C (3 to 4 hrs), room lights (night time), refrigerator (24 hrs), TV 2 sets (3 to 4

hrs), fan (12 hrs). Also own rice cooker, DVD player, radio, iron, mobile phone

(5 sets) and PC (1).


Food (3 mil VND), health (3 mil VND), education (2.5 mil VND), water (0.2

mil VND), gas (0.27 VND), land phone (0.7 to 0.8 mil VND), mobile phone (0.7

to 0.8 mil VND)



Current electricity cost Not expensive (reason) Because we actually do not use electricity much.

Current provided service

Both satisfied and not

satisfied

(reason) Because there are many Power outages during

dry season. Otherwise satisfied.



Around 1 mil VND

Ideas on Smart Grid

Disconnect only A/C Does not matter if it is around 1 hour.

Incentives for turning off A/C Not necessary

Opinion Do not want A/C disconnected if possible.



Interviewee Female Address Ly Thuong Kiet, Ward 14, District 10

Age Born in 1953 Occupation House work


Living period 35 years No of story 4 Total area 330 m2

No of those with jobs 4 Their occupations Salary taker, business





800kWh (invoiced in Sep

2010)

Monthly electricity bill

1,500,000 VND (invoiced in Sep

2010)

Power outage All-of-a-sudden power outage does not happen often. It is within 2 hours during night

time (11 PM to 12 AM) if any.

Percentage of electricity cost among major household expenditures

Less than 20％ (approximately)


A/C 3 pcs (10 hrs from 8PM to 6AM), room lights (5 hrs from 6PM to 11

PM), refrigerator 3 pcs (24 hrs), TV 3 sets (4 hrs), fan 3 pcs (all day long).

Also own rice cooker, DVD player, iron, dryer, mobile phone 5 sets, and PC

1 set.


Food (3 to 4 mil VND), health (2 mil VND), water (0.3 VND), gas (0.29

VND), land phone (50,000 VND), and mobile phone (0.5 VND)



Current electricity cost Expensive (reason) Because it becomes more expensive as we use

electricity.

Current provided service Satisfied (reason) Satisfied as long as there is no power outage.



Around 1mil VND

Ideas on Smart Grid

Disconnect only A/C Does not matter for 30 minutes.

Incentives for turning off A/C 10％ discount. Maximum 1 mil VND

Disconnect all electric appliances. Can accept if it is around 30 minutes.


Does not like to pay additionally. Would choose

to have all electricity disconnected.

Opinion Does not want to have power cut every day. Can accept if it is once a week or month. Would

like to receive prior notice one week advance. May consider if the amount of additional

payment is feasible but would like to keep it as the current amount.



Interviewee Female Address 3 Thang 2, Ward 14, District 10

Age Born in 1936 Occupation Retired


Living period 34 years No of story 2 Total area 150～200 m2

No of those with jobs 2 Their occupations Teacher, engineer





374 kWh (invoiced Sep 2010) Monthly electricity bill

440,000 VND (invoiced Sep 2010)

Power outage It lasted 8AM to 5PM once a week during dry season. It does not happen during rainy

season.

Percentage of electricity cost among major household expenditures -


A/C 1 pc (seldom use), room lights (5 hrs from 6 PM to 11 PM), refrigerator 1

pc (24 hrs), TV (10 hrs), fan (all day long). Also own rice cooker, microwave,

ceiling fan, DVD player, radio, iron, dryer, sewing machine, mobile phones (4

sets), PC (1 set) and electric cooker.


Water (0.2 mil VND), gas (0.15 mil VND), land phone and internet (0.3

mil VND), and mobile phone (0.4 mil VND)



Current electricity cost Not expensive (reason) as it was decided by the Government.

Current provided service Satisfied (reason) Power outage seldom happens. EVN staff come

immediately once we call them.

Willingness to pay more if the quality of EVN’s service becomes improved. Depends


No idea. Cheaper is better.

Ideas on Smart Grid

Disconnect only A/C Not acceptable

Incentives for turning off A/C -

Opinion Would like to enjoy high living standard without any power outage.

Disconnect all electric appliances.

It is not acceptable, but it does not matter as the house has a good ventilation

system.


Choose to have all disconnected instead of

paying additionally.

Opinion Although there are prior notices on newspapers at least 2 days in advance when EVN

conducts power cut (load shedding, repair works), it does not happen as it says. Do not like

to have any power cut.




Age Born in 1968 Occupation Self employed

No of person living Adult 7(M 4, F 3） Child 3 (M 1, F 2) Total 10 (M 5, F 5)


No of those with jobs 7 Their occupations Teacher, banker, tailor



Generator None Mode of payment Pay directly with EVN staff when they visit, or pay at

EVN Office.

Electricity consumption 300 kWh Monthly electricity bill 250,000～300,000 VND

Power outage

It accidentally occurs occasionally, which lasts only 10 to 30 minutes. There is no regular

time



Room lights (5 hrs), refrigerator (24 hrs), TV (12 hrs), fan (12 hrs). Also own

rice cooker, ceiling fan, DVD player, iron sewing machine, mobile phone (10

sets), computer, and electric cooker


Food (9 mil VND), education (5 mil VND), water (0.45 VND), gas

(268,000 VND) and mobile phone (2 mil VND)

Reason not to have A/C

Would like to purchase one, but we cannot afford to buy one as it costs 5 mil

VND or over.



Current electricity cost Expensive (reason) Would like to make it for free.

Current provided service Fair (reason) Not good, not bad

Willingness to pay more if the quality of EVN’s service becomes improved Acceptable

Amount of willingness to pay if the quality of EVN’s service

becomes improved. As the quality improves.

Ideas on Smart Grid

Disconnect only A/C Acceptable for 30 minutes or 1 hour.

Incentives for turning off A/C Cannot think of.

Disconnect all electric appliances. Depends on EVN. Will accept if neighbors do the same.

Willing to stay disconnected or pay additionally to recover the

electricity immediately. Cannot choose one.

Opinion Cannot resist if the Government decides. Will accept to pay additionally if neighbors do the

same. Have no idea about the frequency of the disconnection.




Age Born in 1971 Occupation Merchant

No of person living Adult 7(M 4, F 3) Child 3 (M 1, F 2) Total 10 (M 5, F 5)

Living period 17 to 18 years No of story 4 Total area Over 200 m2

No of those with jobs 6 Their occupations Driver, university student




Electricity consumption 660 kWh Monthly electricity bill 1,200,000 VND

Power outage

Scheduled power outage lasts from 9AM to 4PM once a week with prior notice.

Unscheduled one happens occasionally lasting within 2 hours.

Percentage of electricity cost among major household expenditures ―


A/C (3 hrs), room lights (5 hrs, from 6PM to 11PM), refrigerator 1 pc (24 hrs),

TV 2 sets (5 to 6 hrs), fan (5 to 6 hrs). Also own rice cooker, toaster, DVD

player, iron and mobile phones (4 sets)


Land phones (100,000 VND), mobile phones (300,000 VND)

(No information on other expenditures)



Current electricity cost Expensive (reason) would like to keep within current cost.

Current provided service Satisfied (reason) Because the quality of service is good. It can be

further improved.



Would like to keep the current

cost.

Ideas on Smart Grid

Disconnect only A/C Acceptable for 30 minutes or 1 hour.

Incentives for turning off A/C Will follow as neighbors do.

Disconnect all electric appliances. Acceptable if it occurs occasionally about 30 minutes


Will follow if neighbors pay additionally, but it is not so

acceptable. Choose to have disconnection

Opinion Prefer to have power outage during night time. Hope it will not occur quite often.




Age Born in 1965 Occupation Stock dealer

No of person living Adult 18 (M 9, F 9) Child 0 (M 0, F 0) Child 18 (M 9, F 9)


No of those with jobs 18 Their occupations Laborer, company employee

(remarks) Apart from 6 family members, 12 people rent rooms in the house. It cost 3.5 mil VND with water, gas and

electricity cost inclusive, or 2 mil VND without.


Capacity 220V, 20-80A

380V, 10-40V Mode of billing EVN reads the meter and send the invoice

Generator None Mode of payment Pay at EVN Office.


3,237 kWh (1,067 + 2,170)

invoiced Sep 2010.


5,100,000 VND (1.8 mil + 3.3 mil)

invoiced Sep 2010.

Power outage

It occurs twice a week during dry season. Unscheduled power outage does not occur.

There has been no power outage in September.

Percentage of electricity cost among major household expenditures -


A/C 18 pcs (10 hrs), room lights (24 hrs), refrigerator 4 pcs (24 hrs), TV 18 sets (5

hrs), fan (24 hrs). Also own rice cooker, microwave, ceiling fan, DVD player, iron

(5 to 6 sets), mobile phones (18 sets), and computer (18 sets).


Water (0.7 VND), gas (0.3 VND), home appliance (0.5 VND), land phone (35,000

VND), mobile phone (1 mil VND). No information on other expenditures.


Current power supply Sufficient Because one phase and three phase are both installed.

Current electricity cost Expensive

(reason) It cost around 5.5 mil VND in rainy season, whereas it

costs 10 mil VND in dry season. I think it would cost less if we

try to save energy.

Current provided service Satisfied (reason) because there is no breakdown of electric appliance.

Willingness to pay more if the quality of EVN’s service becomes improved Acceptable


Will follow the amount neighbors agree.

Would like to prioritize safety.

Ideas on Smart Grid


Incentives for turning off A/C N/A

Disconnect all electric appliances. Not acceptable


Will choose to pay additionally (up to 10%).




Age Born in 1980 Occupation Own a company (CEO of construction and architecture

company)


Living period 1 No of story 4 Total area 350 m2

No of those with jobs 1 Their occupations Own a company




Electricity consumption 400 kWh Monthly electricity bill 700,000 VND

Power outage

Scheduled power outages occur twice a week during dry season. Unscheduled outage

occurs lasting within 2 hours. We obtain prior notice through TV and internet.

Percentage of electricity cost among major household expenditures ―


A/C 2 pcs (8 hrs), room light (15 hrs), refrigerator (24 hrs), TV (4 hrs), fan

(4 hrs). Also own rice cooker, microwave, DVD player, iron, mobile phone

(2 sets) and computer (4 sets).


Water (0.2 million VND), land phone (0.1 mil VND), mobile phone (1. 4mil

VND). No information on other expenditures.



Current electricity cost Not expensive (reason) Does not matter as the tariff is applied equally to

others.

Current provided service Satisfied (reason) because there is no specific problems.



It is better to enjoy the improved service, but we are not

willing to pay more.

Ideas on Smart Grid



Opinion Very annoyed by noise and dust when keeping open the door and windows. It is not

comfortable and it becomes hot without A/C



Choose to pay additionally if the new price is generally

acceptable. As we run a company here, we would like to use

electricity during working hour.




Age Born in 1963 Occupation Business


Living period 30 to 40 years No of story 2 Total area 100～150 m2

No of those with jobs 1 Their occupations business



Generator None Mode of payment Pay directly with EVN staff when they visit or transfer

money.

Electricity consumption 500～600 kWh Monthly electricity bill 1,000,000 VND

Power outage Scheduled power outage occurs twice a week during dry season. Unscheduled power

outages during rainy season last about 2 hours (irregular occurrence)



A/C 3 pcs (9 hrs from 9 PM to 6 AM), room lights (4 hrs from 6PM to 10PM),

refrigerator 1 pc (24 hrs), TV 2 sets (3 hrs from 7PM to 10PM), fan (1 to 2 hrs),

ceiling fan (10 hrs). Also own rice cooker, microwave, DVD player, iron, dryer,

sewing machine, mobile phones (4 sets), and electric water heater.


Food (0.6 mil VND), education (0.8 mil VND), water (0.1 mil VND), gas (0.1 mil

VND), land phone (0.1 to 0.15 mil VND), mobile phone (0.5 mil VND)



Current electricity cost Expensive (reason) Electricity bill costs high compared with the income

level.

Current provided service Satisfied (reason) EVN tries to keep improving service.



Would like to keep the

current cost.

Ideas on Smart Grid

Disconnect only A/C Acceptable if it is 30 minutes.

Incentives for turning off A/C ―

Opinion We cannot sleep if A/C stops during night time. Hope the power outage does not happen

every day.

Disconnect all electric appliances. Would like to use at least one of electric appliances.


Choose to pay additionally if it is up to

10%.

Opinion We are used to have power outage once a week because it actually occurred during dry

season. Would like to have less if possible. 4 hours power cut is acceptable if it is during day

time.



Interviewee Female Address Ba Vi, Bac Hai Building, Ward 15, District 10

Age Born in 1978 Occupation Company employee


Living period 4 No of story 2 Total area 50～100 m2

No of those with jobs 4 Their occupations Salary taker




Electricity consumption 800 kWh Monthly electricity bill 1,200,000 VND

Power outage Occasionally occurs and lasts within 2 hours. In the morning time.

Percentage of electricity cost among major household expenditures Less than 10%


A/C 2 sets (4 hrs from 1AM to 4PM), room lights (6 hrs), refrigerator 1 pc (24

hrs), TV (3 hrs), fan (4 hrs). Also own rice cooker, microwave, DVD player,

iron, mobile phone and PC.


Food (3 mil VND), health (2 mil VND), education (3 mil VND), water (0.4 mil

VND), gas (0.5 mil VND), home appliance (0.6 mil VND), land phone (1 mil

VND), mobile phone (1 mil VND)



Current electricity cost Expensive (reason) electricity costs more than other facilities (gas and

water).

Current provided service Satisfied (reason) Because the quality of service is high, and electricity is

supplied 24 hours a day.



―

Ideas on Smart Grid





Interviewee Female Address Thanh Thai, Ward 14, District 10

Age Born in 1970 Occupation Company employee


Living period 20 to 30 years No of story 3 Total area 50～100 m2

No of those with jobs 3 Their occupations Salary taker





Power outage Occasionally occurs.



A/C 2 sets (4 hrs), room lights (4 hrs), refrigerator 2 pcs (24 hrs), TV (4 hrs), fan

(5 hrs). Also owns rice cooker, microwave, DVD player, radio, iron, mobile

phone (4 sets), PC, electric water heater and blender.


Food (3 mil VND), education (1.5 mil VND), gas (0.5 mil VND), land phone

(0.1 mil VND), mobile phone (0.6 mil VND)



Current electricity cost Expensive (reason) tariff is too high.

Current provided service Not satisfied (reason) tariff is too high.



Around 500,000 VND (current

level)

Ideas on Smart Grid

Disconnect only A/C Acceptable


Opinion Does not want to stop A/C as we often use it.




Age Born in 1943 Occupation Retired / housework



No of those with jobs 2 Their occupations Foreign company employee





Power outage

Scheduled power outage occurs once a week for a whole day during dry season. It

occasionally and irregularly occurs during rainy season for two hours.



A/C 2 pcs (7 hrs from 10PM to 5AM), room lights (4 hrs from 6PM to 10 PM),

refrigerator 1 set (24 hrs), TV 3 sets (4 hrs), fan (7 to 8 hrs). Also own rice

cooker, ceiling fan, DVD player, iron, mobile phone (2 sets) and PC.


Food (8 mil VND), health (1 mil VND), education (1 mil VND), water (0.2 mil

VND), gas (0.3 mil VND), home appliance (0.2 mil VND). Land phone

(100,000 VND), fuel (600,000 VND)



Current electricity cost Expensive

(reason) We have to pay any way like neighbors do, although

there is power outage, and it becomes more expensive as we

consume.

Current provided service ― (reason) no special idea. Follow as neighbors do.

Willingness to pay more if the quality of EVN’s service becomes improved. As neighbors do.


Better to pay less.

Ideas on Smart Grid



Opinion There is no big deal as we use A/C only during night time. We do not think the

Government discounts the electricity tariff.

Disconnect all electric appliances. Acceptable if it is 1 to 2 hrs.


Choose to pay additionally 5％ if neighbors also do.



Interviewee Male Address Thanh Thai, Ward 14, District 10

Age Born in 1936 Occupation Grocery shop owner



No of those with jobs 3 Their occupations Teacher, grocery shop owner (2)




Electricity consumption 892 kWh (invoiced Nov

2010)


1,500,000 VND (invoiced Nov

2010)

Power outage

There are scheduled shortages once a week from 7AM to 5PM during dry season.



A/C 1 pc (11 hrs from 5PM to 4AM), room lights (4 hrs from 6PM to 10PM),

refrigerator 2 pcs (24 hrs), TV 5 sets (out of which 2 sets for a whole day), fan 5 pcs

(8 hrs). Also own rice cooker, DVD player, radio (3 sets), iron (2 sets), dryer (2 pcs),

mobile phone (3 sets), electric water heater.


Food (4.5 mil VND), gas (0.1 mil VND), home appliance (0.2 mil VND), land

phone(30,000～40,000 VND), mobile phone (0.3 mil VND), fuel (0.3 mil VND).

Water is free as well water is used.



Current electricity cost Not expensive (reason) no problem as we are rich.

Current provided service

Satisfied / not

satisfied

(reason) Satisfied, but we would like to enjoy stable power

supply without any power shortage or power outage.



Up to 3,000,000 VND

Ideas on Smart Grid



Opinion Not good for health. Will purchase a generator if they disconnect A/C.


Willing to stay disconnected or pay additionally to

recover the electricity immediately. Choose to pay additionally up to 20％.

Opinion Not good for health. Will purchase a generator if they disconnect A/C.



Interviewee Female Address Ly Thai To, District 10

Age Born in 1963 Occupation House work


Living period 56 years since parents

moved. No of story 3 and roof top Total area 300 m2

No of those with jobs 1 Their occupations driver



Generator None Mode of payment Transfer money through post office.


933 kWh (invoiced Oct 2010)

464 kWh (invoiced Nov 2010) Monthly electricity bill

1,743,027 VND (invoiced Oct 2010)

767,976 VND (invoiced Nov 2010)

Power outage

Scheduled power outage occurs once a week during dry season. Repair works and all of a sudden

power outage occurs irregularly during rainy season lasting within 2 hrs.



A/C 3 pcs (11 hrs from 8PM to 7AM), room lights (6 hrs from 6PM to 12AM),

refrigerator (24 hrs), TV 3 sets (a few hours), fan 2 pcs (all day long). Also

owns rice cooker, microwave, DVD player (2 sets), radio (2 sets), iron (2 pc),

dryer (2 pcs), mobile phone (3 sets) and PC.


Food (4 mil VND), education (3 to 4 mil VND), water (0.3 mil VND), gas (0.1

mil VND), home appliance (0.6 mil VND), land phone (384,689 VND), mobile

phone (1 mil VND), fuel (0.6 mil VND)



Current electricity cost Expensive (reason) Because we use a lot of electricity.

Current provided service Satisfied (reason) Convenient. No trouble.

Willingness to pay more if the quality of EVN’s service becomes improved. ―


Follow as neighbors do.

Ideas on Smart Grid





Choose to pay additionally if it is within an

increase of 100,000～200,000 VND.

Opinion Do not want to have power outage during evening time as preparation for dinner requires

electricity. Additional payment should be as low as possible.