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Wednesday, June 26, 2024

LNG power price cap set at nearly VND2,600 per kWh

By Truc Dao

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HCMC – The Ministry of Industry and Trade has approved the electricity price framework for liquefied natural gas (LNG) power plants for 2024, setting the maximum price at VND2,590.85 per kilowatt-hour (kWh), excluding value-added tax (VAT).

Announced on May 27, this decision establishes the price range for combined-cycle gas turbine (CCGT) power plants using LNG, based on the ministry’s Circular No. 57/2014. This circular outlines the methods and procedures for setting electricity prices.

Key factors in determining the price include a net capacity of 1,579,125 kW at an 85% load, with a net heat rate of 6,330.2 British thermal units (BTU) per kWh.

The LNG price is set at US$12.9792 per million BTU, excluding VAT and additional costs for storage, regasification and distribution. The exchange rate used is VND24,520 per U.S. dollar.

The Ministry of Industry and Trade has instructed the Vietnam Electricity Group (EVN) and power generation companies to negotiate electricity purchase prices according to guidelines. Additionally, they must ensure that investment costs comply with construction regulations.

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