Japan lends Vietnam $761 mln mostly for energy

By Reuters


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Japan, Vietnam's biggest single provider of aid, said recently it would extend up to 79.33 billion yen ($761 million) in yen loans to Hanoi this year for infrastructure projects, with the bulk going for energy plants.

The total is just a little smaller than the $872.1 million.

Tokyo is expected to dispense to Vietnam's large communist neighbour China, which has seen Japan lending decrease in the last three years.

Vietnam is in dire need of financing to ramp up energy supplies in order to meet demand that is growing at more than twice its annual GDP rate of seven percent.

Some $448 million of the yen loans will go toward engine construction at the O Mon thermal power plant and the building of the Dai Ninh hydropower station, a statement from the Japanese embassy in Hanoi said.

The rest will be divided among six projects that include upgrading bridges, improving the safety of Vietnam's main railway line and improving the water supply system in two provinces.

Japanese Ambassador Norio Hattori said the loan total for Vietnam this year was about the same as that in 2003 even though Japan's official development aid budget had shrunk. He said that showed the importance of Japan's relationship with Vietnam.

India is Japan's top recipient of aid in Asia. It is slated to receive 120 billion yen in loans this year to fight poverty and improve its infrastructure.

Tokyo has provided loans to Vietnam annually since 1992, with the amount remaining constant in the last 10 years. Hanoi has said it needs to build 60 more power plants by 2020 to meet its needs and that it requires energy investments of around $2 billion a year.

Some will come from foreign aid but it is also hoping for private bank loans. Around 73 percent of Vietnam's electricity is provided by hydropower and coal-fired plants; the rest comes from gas-fired plants. ($1

104.25 yen)

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Key Points

Upgrades that raise Bruce Power capacity via stator, turbine, transformer, and cooling enhancements.

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✅ Cooling pump enhancements optimize plant thermal performance

 

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Annual U.S. coal-fired electricity generation will increase for the first time since 2014

U.S. coal-fired generation 2021 rose as higher natural gas prices, stable coal costs, and a recovering power sector shifted the generation mix; capacity factors rebounded despite low coal stocks and ongoing plant retirements.

 

Key Points

Coal output rose 22% on high gas prices and higher capacity factors; a 5% decline is expected in 2022.

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✅ 2022 coal generation forecast to fall about 5%

 

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The overall decline in electricity demand in 2020 and record-low natural gas prices led coal plants to significantly reduce the percentage of time that they generated power. In 2020, the utilization rate (known as the capacity factor) of U.S. coal-fired generators averaged 40%. Before 2010, coal capacity factors routinely averaged 70% or more. This year’s higher natural gas prices have increased the average coal capacity factor to about 51%, which is almost the 2018 average, a year when wind and solar reached 10% nationally.

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Key Points

A 10% COVID-19-driven drop in BC power use, prompting reservoir spilling, plant curtailment, and potential rate hikes.

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Site C and hydro rates
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Major industry — forestry, mining and oil and gas — accounts for about 30 per cent of BC Hydro's overall electricity load. Energy demand from these customers has dropped by seven per cent since mid-March, while in Manitoba a Consumers Coalition has urged rejection of proposed rate increases.

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Key Points

Smart meter billing uses digital reads, limits estimates, and may trigger catch-up charges after reading suspensions.

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A Nova Scotia senior says she couldn't believe her eyes when she opened her most recent power bill. 

Gloria Chu was billed $666 -- more than double what she normally pays, and similar spikes such as rising electricity bills in Calgary have drawn attention.

As someone who always pays her bi-monthly Nova Scotia Power bill in full and on time, Chu couldn't believe it.

According to her bill, her electricity usage almost tripled during the month of May, compared to last year, and is even more than it was last winter, and with some utilities exploring seasonal power rates customers may see confusing swings.

She insists she and her husband aren't doing anything differently -- but one thing has changed.

"I have had a problem since they put the smart meter in," said Chu, who lives in Upper Gulf Shore, N.S.

Chu got a big bill right after the meter was installed in January, too. That one was more than $530.

She paid it, but couldn't understand why it was so high.

As for this bill, she says she just can't afford it, especially amid a recently approved 14% rate hike in Nova Scotia.

"That's all of my CPP," Chu said. "Actually, it's more than my CPP."

Chu says a neighbor up the road who also has a smart meter had her bill double, too. In nearby Pugwash, she says some residents have seen an increase of about $20-$30.

Nova Scotia Power had put a pause on installing smart meters because of the COVID-19 pandemic, but it has resumed as of June 1, with the goal of upgrading 500,000 meters by 2021, even as in other provinces customers have faced fees for refusing smart meters during similar rollouts.

In this case, the utility says it's not the meter that's the problem, and notes that in New Brunswick some old meters gave away free electricity even as the pandemic forced Nova Scotia Power to suspend meter readings for two months.

"As a result, every one of our customers in Nova Scotia received an estimated bill," said Jennifer parker, Nova Scotia Power's director of customer care.

The utility estimated Chu's bill at $182 -- less than she normally pays -- so her latest bill is considered a catch-up bill after meter readings resumed last month.

Parker admits how estimates are calculated isn't perfect.

"There would be a lot of customers who probably had a more accurate bill because of the way that we estimate, and that's actually one of things that smart meters will get rid of, is that we won't need to do estimated billing," Parker said.

Chu isn't quite convinced.

"It is pretty smart for the power company, but it's not smart for us," she said with a laugh.

Nova Scotia Power has put a hold on her bill and says it will work with Chu on an affordable solution, though the province cannot order the utility to lower rates which limits what can be offered.

She just hopes to never see a big bill like this again, while elsewhere in Newfoundland and Labrador a lump-sum electricity credit is being provided to help customers.

 

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Key Points

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Governments should also make sure consumers have access to fixed-price electricity contracts - echoing France's new electricity pricing scheme to reassure Brussels - giving them the option to avoid a contract that would expose them to volatile prices swings in energy markets, the draft said.

If European energy prices were to spike to extreme levels again, the Commission suggested allowing national governments to temporarily intervene to fix prices while weighing emergency measures to limit prices where needed, and offer consumers and small businesses a share of their electricity at a lower price.

 

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