Electrical Equipment / Components & Telecoms

According to Huacheng Import and Export Data Observation, on May 23, in Dongxing City, Fangchenggang, Guangxi, Guangxi and Vietnam officially signed a power purchase and sales agreement for the 110 kV deep trench to Mang Street interconnection project. This restart of power transmission work is the first resumption in 7 years, which will greatly alleviate the recent power shortage caused by drought in northern Vietnam.

According to Huacheng Import and Export Data Observation, according to the agreement, starting from May this year, Guangxi will transmit electricity to Vietnam through the 110 kV power grid line between Dongxing Shengou in Guangxi, China and Mang Street in Vietnam. The main power supply scope is in the Mang Street area of Vietnam, with an estimated monthly power supply of 30 million kilowatt hours. The first phase of power transmission is nearly 68 million kilowatt hours, providing green and stable power supply for the economic and social development of northern Vietnam.

According to Huacheng Import and Export Data Observation, from 2005 to 2016, Guangxi transmitted over 1.1 billion kilowatt hours of electricity to Vietnam through the China Vietnam power grid, which was interrupted for 7 years thereafter. Recently, due to the dual effects of extreme hot weather and persistent drought, Vietnam's electricity consumption has surged, and the power supply is facing a tense situation. Therefore, the demand for resuming connected electricity purchases has been proposed. According to Huacheng Import and Export Data Observation, on May 16th, China Southern Power Grid Guangxi Power Grid Corporation and Vietnam Northern Power Corporation discussed and reached a cooperation agreement on power transmission matters in Dongxing City, Fangchenggang, Guangxi. Vietnam Northern Power Corporation purchased power from Guangxi Power Grid Corporation from May to July 2023, with a maximum power consumption of 70 megawatts and a monthly electricity consumption of 30 million kilowatt hours. The signing of this agreement is a supplement and improvement to the negotiation results.

With the joint efforts of China and Vietnam, the two countries are not only connected by mountains and rivers, but also by electricity. Now, China Vietnam electricity cooperation has become the most dynamic and important component of electricity cooperation in the Greater Mekong Subregion. Guangxi will also coordinate the planning and layout of the ASEAN oriented power channel, promote higher voltage level interconnection between China and Vietnam, and enhance the power supply guarantee capability. At the same time, deepen long-term cooperation with Vietnamese power enterprises in the fields of power grid, power supply, management and technology, further expand the scale of power trade, contribute to the green and low-carbon transformation of economic and social development in the Lancang Mekong region, and promote high-quality co construction of the "the Belt and Road", Huacheng Import and Export Data Observation Report.