Renewable energy businesses prosper in Q1

Wind power is expected to be the spearhead for renewable energy development in the 2022-45 period. — Photo evn.com.vn

HÀ NỘI — Leading companies in the renewable energy industry all recorded strong profit growth.

Despite the large divergence in business results, companies still recorded impressive growth in the first quarter of this year. Electricity consumption is forecast to grow this year, helping to increase power generation from renewable energy units.

In the first quarter, Vietnam Electricity (EVN)’s power output fuelled by renewable sources was about 10.01 billion kWh, ranking third among power sources, accounting for 15.9 per cent of the total electricity production of the whole system.

Refrigeration Electrical Engineering Corporation’s (REE) consolidated revenue in the quarter reached VNĐ2.05 trillion, up 72.9 per cent over the same period.

Its profit after tax reached nearly VNĐ1 trillion, double that of the first quarter of last year.

The largest contribution to REE’s revenue and profit comes from the energy segment.

Total revenue from the energy segment of this enterprise in the first quarter this year reached VNĐ1.44 billion, up 287 per cent over the same period, thanks to output generated by its three wind power plants including Trà Vinh V1-3, Phú Lạc 2 and Lợi Hải 2.

REE sets a target with revenue of VNĐ9.28 trillion and profit after tax of VNĐ2.06 trillion for this year.

REE has achieved 22 per cent of the year’s revenue target and 46.2 per cent of the profit plan by the end of the first quarter.

Gia Lai Electricity Joint Stock Company (GEC) also saw growth in both revenue and profit. Revenue of the enterprise reached VNĐ570 billion in the period, up 87 per cent over the same period last year.

Thanks to the large gross profit, after deducting expenses, Gia Lai Electricity recorded a profit after tax of VNĐ174 billion, up 127 per cent over the same period last year.

According to the explanation from company, electricity sales increased by VNĐ270 billion in the first quarter of this year, equivalent to 89 per cent. At the same time, cost increased by VNĐ96 billion because wind power plants went into commercial operation from the fourth quarter of last year.

Similarly, PC1 Group Joint Stock Company recorded a revenue decrease of 9 per cent, at VNĐ1.48 trillion, but profit after tax increased 2.2 times over the same period, reaching VNĐ179 billion.

In the revenue structure of PC1, revenue from electricity sales accounted for the largest with VNĐ456 billion, four times higher than the same period last year.

In contrast, Power Engineering Consulting Joint Stock Company 2 and Hà Đô Group had dismal results with profits decreasing by 54 per cent and 26 per cent, respectively.

The main reason was due to the sharp drop in revenue, 22 per cent and 50 per cent, respectively.

Great prospects in the medium and long term

Experts said that electricity consumption would rise again this year. Accordingly, it was very important to develop a suitable power system to meet the surging demand.

Currently, the potentials for hydro-electricity has gradually exhausted, while coal power faces financial difficulties due to its negative impact on the environment.

Therefore, renewable energy received great attention thanks to its clean nature and large growth potential, said experts.

The new Draft Power Plan 8 is focusing on a strong clean energy transition to meet the country’s “net zero” commitment. In which, the proportion of renewable energy power capacity has been increased remarkably, especially wind power.

Statistics show that solar power plants have recorded an improved capacity in the past three months, while wind power plants have shown instability due to weather.

The FIT price race has ended, and renewable energy investors are waiting for a new mechanism to restart a new phase of development.

Experts believe that solar power development capacity will slow down until 2030 while wind power is expected to be the spearhead for renewable energy development in the 2022-45 period. — VNS