It can be observed that a historic milestone in Vietnam's renewable energy development emerged on the afternoon of September 29, 2020, in Ninh Thuan province when Trung Nam Construction Investment Joint Stock Company (Trungnam Group) successfully energized its 220 - 500kV Substation and Transmission Line.
Official sources report that this infrastructure, integrated with the 450 MW Trung Nam Thuan Nam Solar Power Plant, will generate over 1 billion kWh—equivalent to 1 TWh of electricity—from renewable sources (1.2 billion kWh in its first year) while playing a vital role in relieving grid capacity curtailment across Ninh Thuan and the South Central Coast.
It is hailed as a historic milestone because this is the first 500kV power transmission line invested and constructed by a private enterprise in Vietnam—drawing a continuous link to another historic landmark on May 27, 1994, when Vietnam's first 500kV line went into operation, forever associated with the legendary former Prime Minister Vo Van Kiet.
Anyone who lived through that era understands the immense hardships involved in formulating the concept and executing the construction of that first 500kV transmission line—spanning macro strategic thinking, heavy capital expenditures, and stringent engineering standards. A former minister recalled that at the time, the Prime Minister was so deeply concerned he stated that if the project failed, he would resign!
That was under the full tension of national state resources. Today, a single private corporation has completed a project requiring not only massive financial capability and compliance with strict engineering parameters, but also the confidence and courage of a visionary investor.
Today, operations run smoothly. Trungnam Group's substation is fully operational, housing two 500kV/900 MVA transformers designed and manufactured by SIEMENS—the world's premier electrical equipment brand from Germany. Delivering a combined capacity of 1,800 MVA, the two transformers possess sufficient capacity to supply power to two major cities/provinces.
Notably, the 900 MVA transformer rating represents the largest capacity class currently produced in most countries worldwide. Serving as the "heart" of renewable energy projects, these vital components step voltage up or down to ensure alignment with national grid demands. Complementing the substation is over 17 km of 500kV and 220kV transmission lines stretching from Phuoc Minh commune, Thuan Nam district, Ninh Thuan province to Vinh Tan commune, Tuy Phong district, Binh Thuan province.
Many recall that at the 21st Conference of the Parties to the UNFCCC (COP21) in December 2015, the Prime Minister of Vietnam committed to reducing greenhouse gas emissions by 8% by 2030, and potentially up to 25% with effective international support.
Yet realities in Vietnam appeared to point in the opposite direction. Not long ago, at the "Coal-fired Power Technology and Environment" seminar organized by the Ministry of Industry and Trade, experts noted that coal power would maintain a dominant 55% share of national generation annually, simply due to the lack of alternative baseload sources.
Statistics show that Vietnam's power system has grown significantly, ranking 31st globally and 2nd in ASEAN. Total system capacity reached 40,000 MW with 162 billion kWh generated in 2015 (hydro 41%, coal 33%, gas 31%, and the remainder renewable energy).
However, under national power planning, coal power generation was projected to reach 49.3% by 2020 and 55% (45,800 MW consuming ~95 million tons of coal) by 2025.
Imagine the millions of tons of solid waste and toxic emissions released into the environment from such massive coal consumption, and how Vietnam's COP21 commitments could be fulfilled under those conditions.
Now, learning that a private enterprise invested a billion dollars into solar power signals that the era of green, clean energy in Vietnam has truly arrived!
First, favorable timing ("Heaven's alignment"). The Prime Minister issued Decision No. 11/2017/QD-TTg on incentive mechanisms for solar power, mandating EVN to purchase grid-connected solar power at 2,086 VND/kWh (~9.35 cents/kWh), alongside tax, land, and import tariff incentives.
Second, advantageous location ("Earth's alignment"). Vietnam boasts world-class solar radiation (4.3 – 5.7 kWh/m² daily, 2,000 – 2,600 sunshine hours annually in the Central Highlands and South Central regions). With national power demand projected to double by 2025 requiring $74 billion in power investments, the solar market holds vast potential.
Third, human harmony ("People's alignment"). Vietnamese citizens and businesses are increasingly welcoming green energy, giving rise to over 100 utility-scale solar plants and an unprecedented rooftop solar boom.
According to Vietnam Energy Magazine, completing and commissioning Trungnam Group's 220 - 500kV Substation and Transmission Line integrated with the 450 MW Thuan Nam Solar Power Plant delivers 4 vital values:
1. Realizes Government Resolution 115 to establish Ninh Thuan as the national renewable energy center.
2. Relieves power curtailment across Ninh Thuan and Binh Thuan, preventing trillions of VND in annual losses for power plants, improving the provincial investment climate, and solving national power shortages.
3. Adds over 1 billion kWh annually to the national grid, driving renewable energy to replace fossil fuels and protect the environment.
4. Implements Politburo Resolution 55 by promoting private participation in power generation and transmission infrastructure.
Assoc. Prof. Dr. Dinh Trong Thinh: Private participation in power transmission accelerates market reform and reflects government trust in private corporate capability. Politburo Resolution 55 opened a competitive market where private companies develop generation and transmission infrastructure. Energizing the 500kV substation in just 102 days demonstrates remarkable speed and execution efficiency, proving that private enterprise can bear heavy infrastructure responsibilities.
Assoc. Prof. Dr. Ngo Tri Long: Vietnam holds immense renewable energy potential. Private investment in transmission infrastructure is essential to eliminate grid bottlenecks and ensure solar power plants operate at full capacity. Trungnam Group's pioneering effort sets an inspiring precedent for domestic and foreign investors.
Mr. Nguyen Tuan Anh, Deputy Director General of Electricity and Renewable Energy Authority:
Constructing power transmission systems is a new domain. In Ninh Thuan, Trungnam Group invested in a 500kV substation and connecting transmission lines using private capital.
In line with Resolution 55, the Politburo emphasized attracting private investment for transmission grids while separating private investment scope from state monopolies on backbone national security grids. Dedicated transmission lines linking specific project clusters to connection points can be safely entrusted to private investors without compromising national energy security.
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Source: reatimes.vn