EVNSPC Proactively Develops Power Infrastructure to Attract Investment in Industrial Zones

EVNSPC Proactively Develops Electrical Infrastructure to Attract Industrial Zone Investments

EVNSPC invests in substations and transmission lines using N-1 redundancy planning to meet the electricity demand of industrial zones, synchronizing with investment attraction timelines.

In implementing Resolution 70-NQ/TW of the Politburo on national energy security assurance, the Southern Power Corporation (EVNSPC) invests in and upgrades the power grid according to the development needs of industrial zones and foreign direct investment (FDI) areas in 8 southern provinces and cities. Electrical infrastructure is prepared well in advance to meet production demands while synchronizing with the investment attraction schedules of each locality.

EVNSPC currently manages and distributes electricity across 8 southern provinces and cities, excluding Ho Chi Minh City. This area concentrates numerous economic zones, industrial zones, and FDI enterprises, including Tay Ninh and Dong Nai. Industrial and construction customers account for approximately 55% of total electricity consumption within the corporation's managed areas.

According to Mr. Bui Quoc Hoan, EVNSPC's Deputy General Director, the total installed power generation capacity in the southern region, including rooftop solar self-production and self-consumption, wind power, hydropower, thermal power, and other sources, currently approaches 37,000 MW. Meanwhile, the maximum demand in 2026 is projected at around 22,000 MW. He stated that the region still has adequate capacity reserves to meet electricity demand as industrial zones attract additional secondary investors.

Mr. Bui Quoc Hoan, EVNSPC's Deputy General Director. Photo: EVNSPC

Beyond capacity, system reliability is also a critical requirement for production operations. The power grid supplying industrial zones is designed according to N-1 criteria, meaning there is a backup source or contingency plan when a system component experiences failure. In areas requiring high power quality, this criterion is also applied at the medium-voltage level. EVNSPC aims to expand the N-1 criterion in electricity supply to both residential customers and businesses by 2028.

In localities with high industrial growth rates driven by global supply chain restructuring waves and high-tech supporting industries, such as Tay Ninh, electrical infrastructure is continuously upgraded. Currently, Tay Ninh province has a 110kV power grid comprising over 55 substations with a total capacity of approximately 5,413 MVA.

To promptly meet the growing load demand in areas with concentrated industrial zones, EVNSPC has proactively invested in and upgraded the power grid. In Can Giuoc commune, Tay Ninh province - where 5 industrial zones with nearly 500 enterprises are concentrated - electricity demand for production is increasing steadily. In response to load growth pressure, the 110kV Can Giuoc substation previously had only one 63 MVA transformer. The power sector invested in an additional T2 transformer, which was commissioned on August 23. This transformer helps enhance electricity supply capacity for industrial zones and neighboring areas of Can Duoc and Can Giuoc, while also meeting N-1 operational criteria.

The 110kV Can Giuoc substation (Tay Ninh province) has just had its capacity upgraded with an additional T2 transformer installed. Photo: EVNSPC

Mr. Tran Duy Vu, Deputy General Director of Kizuna JV Joint Stock Company, stated that over 80% of enterprises in Kizuna are foreign investors operating in high technology, electronics, and food processing sectors. According to him, stable electricity supply is a crucial condition for maintaining production in the industrial zone.

According to Mr. Vu, from the very beginning of operations, the company received support from EVNSPC, Tay Ninh Power Company, and Can Giuoc Power in providing two independent grid power sources for the industrial zone. During the power supply process, the power sector coordinates on warnings and maintenance to ensure stable system operation. This helps enterprises be more proactive in production maintenance planning and investment expansion.

Electricity supplied to industrial zones meets N-1 criteria. Photo: EVNSPC

At the expanded Tan Kim Industrial Zone, Mr. Nguyen Van Ban, Deputy Director of Dang Huynh Industrial Zone Exploitation and Management Joint Stock Company, stated that annual electricity consumption increases by an average of over 10%. The industrial zone management unit coordinates with the power sector to forecast capacity demand for developing appropriate investment plans. The recent addition of new medium-voltage lines contributes to meeting electricity usage demand as the industrial zone fills its leasable area.

Dong Nai is also an area with significant industrial electricity demand, with over 30 industrial zones currently in operation. The local 110 kV power grid comprises over 58 substations with a total capacity exceeding 6,179 MVA, serving heavy industrial enterprises and large-scale manufacturing complexes.

Nha Be Steel Joint Stock Company - VNSTEEL (Dong Nai City) has just broken ground on a project to add a steel billet smelting stage with a capacity of 150,000 tons of products per year, with a total investment of 450 billion VND. The new production line requires stable and quality-compatible electricity supply. To meet this demand, EVNSPC plans to invest in the 110 kV Nha Be Steel substation with a scale of 2x40 MVA. In the initial phase, the project will install one 40 MVA transformer and prepare the foundation for the second unit when load increases. The project also includes a double-circuit connection line at Nhon Trach II - Nhon Phu Industrial Zone, connecting through the existing 110 kV Long Thanh 2 - Hyosung 2 transmission line.

EVNSPC always coordinates closely with investors and enterprises during the power supply process. Photo: EVNSPC

According to EVNSPC, this component serves specifically the needs of the billet smelting project while also contributing to improving power supply reliability for Nhon Trach II - Nhon Phu Industrial Zone in the coming years. Organizing investment according to load forecasting helps the system maintain capacity reserves to meet growth demand, rather than waiting until electricity demand increases to add infrastructure.

Within EVNSPC's managed area, numerous industrial zones are expanding or preparing for operation. The corporation stated it has worked with industrial zone investors and local authorities to update demand, adjust planning when necessary, and prepare power projects according to investment attraction schedules. Several grid projects are being implemented, targeting commissioning in 2027, serving Bau Can - Tan Hiep, Xuan Que - Song Nhan, and Long Duc 3 industrial zones in Dong Nai, as well as Phuoc Dong Industrial Zone in Tay Ninh. These projects also consider post-development demand once Long Thanh Airport becomes operational.

However, power grid investment for industrial zones still depends on land clearance progress, approval procedures, investment policy approvals, and internal land handover. If construction schedules for power grids, industrial zone development, and secondary investor attraction are not synchronized, it could lead to situations where projects are completed but have no load, or where electricity demand increases rapidly before external transmission lines are completed.

Therefore, EVNSPC believes that local authorities, the power sector, and industrial zone investors need to coordinate from the planning phase. Early identification of demand, land availability, and implementation schedules can help projects meet legal requirements, reduce delays, and improve power infrastructure investment efficiency.

Hoang Dan