China resumes cross-border electricity sales to Vietnam through Guangxi channel

By：Belt and Road Portal Update：2023-05-25

China Southern Power Grid Co., Ltd. on Tuesday inked an electricity sales deal with Vietnam Electricity Group (EVN) to transfer electric power via 110kv power lines from Shengou in Dongxing City of south China's Guangxi to Mong Cai in Vietnam.

The deal marks resumption of cross-border electricity sales through Guangxi power transmission channel between China and Vietnam after a seven-year halt since March 2016.

China and Vietnam started power grid connectivity in 2004 via five channels in Yunnan and Guangxi. Since then, more than 44.1 billion kWh of electricity has been transmitted from China to Vietnam. In March 2016, the electricity transmission through channel in Guangxi was suspended. But the channels in Yunnan remain operational.

Wu Yuming, deputy general manager of Guangxi Power Grid Company of China Southern Power Grid Co., Ltd., said that the power transmission will begin at the end of May this year, and is expected to supply about 30 million kWh of electricity monthly using the 110kv power lines between Shengou in Guangxi's border city Dongxing and Mong Cai in Vietnam.

According to the sales agreement, some 68 million kWh of electricity will be transmitted and sold to Vietnam in the first phase by means of the Guangxi power channel. Chinese side will take the responsibility to ensure the safe operation of the power connectivity facilities.

Both sides also agreed to keep true to long-term cooperation intention and set up long-term electricity trading and coordinating mechanisms, as well as persistently deepening bilateral energy cooperation.

Taking China-ASEAN Expo as a platform to consolidate cooperation, China Southern Power Grid and Vietnam Electricity Group, Vietnam's state utility, pledged to better promote China-Vietnam energy connectivity and development of bilateral electric power trade.

Now, Vietnam imports some 2 billion kWh of electricity from China per year via Yunnan channels to ease its strained domestic power supply.

Due to extreme hot weather and persistent drought in Vietnam since this year, the southeast Asian country faces increasing stress of power consumption shortage. So Vietnam Electricity Group seeks to expand electricity purchase from China.

Editor: Tian Shenyoujia