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In 2021-2025 period, EVNGENCO3 focuses on implementing digital transformation in areas of governance, technical management, investment and construction, IT & telecommunications. Typically, application of Artificial Intelligence (AI) to exploit centralized data, automatic information extraction analysis; construction of mobile based operating and repairing management system for power plants; completion of hydrological monitoring system, combination of weather forecasting and AI application to monitor and operate reservoirs, plants and send flood warning signals to hydropower plants downstream. Besides, EVNGENCO3 also strengthens security readiness and solution to safeguard its operations in network environment, etc.
SUSTAINABLE DEVELOPMENT GOALS
SUSTAINABLE DEVELOPMENT
is THE CHALLENGE,
THE FOCUS of EVNGENCO3
- Maintain power flows, keep power grid stable to ensure national power security.
- Strictly comply with environmental regulations.
- Development of new clean electricity sources under the National Energy Transition Program.
- Build up a manpower capable of meeting future development requirements.
SUSTAINABLE DEVELOPMENT GOALS
Sustainable development management
is THE FOCUS
in all management and operation activities of the Corporation
Corporate Management Model of EVNGENCO3 involves the set of following elements:
- Solid foundation for Governance structure: EVNGENCO3 Governance Structure includes the set of governance components of a listed company: General Meeting Of Shareholders, Board Of Supervisors, Board Of Directors, Departments Under Board Of Directors, Board Of Management.
- Compliance with practices and laws of Vietnam: comply with all regulations of the laws of Vietnam, legal framework of Vietnam and governance mechanisms of a listed company.
- Uniformly enforce corporate governance tools throughout the Corporation.
Principles of Sustainable Development Governance
LINKING EVNGENCO3’S SUSTAINABLE DEVELOPMENT GOALS TO UN’S 17 SDGS
Connect with stakeholders
Stakeholders are those who have the ability to affect or to be affected by business activities of EVNGENCO3. Therefore, EVNGENCO3 has determined its stakeholders including:
investors
trading
partners
(Electricity customers)
agencies
community
investors
trading
partners
(Electricity customers)
partners
agencies
community
Effective linkage with stakeholders will support operation and development of the Corporation. EVNGENCO3 ensures a harmony of interests for stakeholders, respect the law, build and maintain relationships on the spirit of mutual respect, cooperation, understanding and spiritual companionship.
Material issues
Identify sustainable development related areas that can affect EVNGENCO3, as well as its impacts on stakeholders’ concerns.
- Research, review market information and electricity industry
- Analyze press information
- Review customer and partner surveys, etc.
- Information from industry associations
- Internal discussions with laborers, contacts to local authorities
Select materials issues of interest of stakeholders
- Identify priority areas
- Validate material issues of senior management
- Identify material issues of EVNGENCO3
- Classify material issues based on 3 groups of content: economic-social-environmental
Economic efficiency
GRI 201-1
DIRECT ECONOMIC VALUE CREATED AND DISTRIBUTED
- EVNGENCO3’s plants have directly penetrated electricity market, the Corporation manages and monitors the price performance; coordinate with operation and repair of power units and plants to increase revenue; comply with regulations on electricity market.
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Despite high price of gas fuel early 2022 which causes impacts on mobilization of gas turbine units and challenges of coal fuel supply, this has affected business and production performance, but EVNGENCO3 has flexibly adapted and achieved important results.
- Total power output reached 32.242 billion kWh, equivalent to 101.23% of the plan.
- Total revenue of parent company was VND 46,382 billion, equivalent to 102.13% of the plan.
- Power Generation Joint Stock Corporation 3 has shortened progress of repair of engine units, strengthening digital transformation and technical solutions to reduce operating costs.
- In 2022, dependent accounting companies have completed 06 overhaul projects (Phu My 1: TI GT11, TI GT12 and CI GT13 overhauls; Phu My 4: GT42 overhaul; Mong Duong 1: S1 overhaul; Buon Tua Srah: H1 overhaul) to ensure safety, quality with 14 days ahead of schedule.
- Overhaul costs in 2022 estimated at VND 513,385 billion, lower than the plan by VND 155,733 billion.
- Implement the project of reducing ricks, reduce machine downtime which was much lower than the plan.
- Units have synchronously implemented many solutions to reduce heat losses with 10,536 kJ/kWh in 2022, down 36 kJ/kWh as of 2021.
- COGS/revenue was 88.35% in 2022, almost the same period of 2021.
- EVNGENCO3 implements the salary and bonuses for employees corresponding to the level and nature of work; ensure that social insurance and unemployment insurance deductions are fully implemented in accordance with law.
- The Corporation regularly reviews and adjusts welfare policies, creates more practical incentives to ensure the well-being of all employees.
- With unique characteristics of electricity industry, it requires large loans for investment projects. The Corporation always ensures loan payment schedule to financial organizations. Total outstanding loans was VND 40,499 billion end of 2022, down VND 5,073 billion as of end of 2021.
- EVNGENCO3 always makes full payment to the State budget with total of VND 2,079 billion of parent company in 2022, of which water resource tax and environmental forest fees reached VND 608.65 billion.
- Regularly carry out charitable activities such as paying visits and giving gifts to the poor, families under preferential treatment policy, giving support to programs of localities.
- Total budget for community activities reached approximately VND 10 billion in 2022.
GRI 201-2
EFFECTS OF CLIMATE CHANGE RISKS ON FINANCIAL PERFORMANCE AND OTHER OPPORTUNITIES
- Vietnam has witnessed extreme weather phenomena in recent years such as higher temperature, rainfall, sea level rise. Therefore, input factors of EVNGENCO3’s hydropower plants are also hit such as rain, evaporation, flood season flow, dry season flow, erosion, reservoir sedimentation, etc. These abnormal changes have caused direct impacts on power production (energy safety), construction safety, flood, drought, etc.
- Risks & opportunities emerged from climate change can create major changes in operation cost and revenue of power plants:
- Effects of flood and heavy rainfall on construction site safety.
- Water flow reduced due to El Nino event.
- Increase water flow due to prolonged La Nina weather pattern.
- Complicated weather developments have caused impacts on water flow forecasting and operation of EVNGENCO3.
- Especially, continuous period of dry weather reduces power input of power plants.
- To operate the hydropower plans safety and effectively during stormy and rainy seasons, the Corporation works out a maintenance & repair plan for equipment, power stations and 220kV power cable network on a yearly basis and at the appropriate time depending on current weather status to maximize the plant capacity.
- It also requires to assess effects of climate change on water flow to reservoirs in the future, build optimal operation process to take advantage of water volume during flood season for power generation; plan to conduct a survey on mapping the topography of reservoirs, propose dredging programs to ensure useful capacity and flood control capacity of reservoirs as designed.
- Build a plan on natural disaster prevention & control, search and rescue with “4 on the spot” motto: command manpower-materials and logistics to improve capacity and specialized responsibilities, ensure construction site safety during flood seasons, make safety as a top priority during the whole operation process.
- To timely provide information of production operations and reservoir regulation to communities downstream, the Corporation has established 24 flood warning stations downstream (Buon Tua Srah: 14 stations; Buon Kuop Reservoirs: 10 stations) and along the river downstream to get local people alerted. At the same time, the Corporation has installed Zalo groups at 3 reservoirs with local authorities to announce, exchange and provide information in a timely and quick manner to related parties to improve efficiency of flood & rain response.
- Buon Kuop Hydropower Company has successfully researched and put into application a remote flood warning system replacing whistle warning to help local people in the downstream area to avoid unfortunate accidents, limiting damage when storms and floods occur.
GRI 201-4
GOVERNMENT BACKED FINANCE
- The Corporation’s power projects, during the process of investment, have been funded by competent authorities through loans, guaranteed loans, foreign loans such as:
- Mong Duong 1 Thermal Power Plant: financed by ADB and KEXIM worth 1,440,710,000 USD.
- Vinh Tan 2 Thermal Power Plant: financed by China Eximbank worth 980,025,629.05 USD and 600,000,000 CNY.
GRI 202-1
RATIO OF STARTING WAGE BY GENDER TO REGION’S MINIMUM WAGE
- EVNGENCO3 implements a salary and bonus regime corresponding to level and nature of work, ensure deduction of social insurance & unemployment insurance premium to be fully done as stipulated.
- The Corporation ensures the starting wage of employees not lower than regional minimum salary as stipulated without any gender gap in payment.
GRI 203-1
INFRASTRUCTURE INVESTMENT & SUPPORTED SERVICES
- In 2022, EVNGENCO3 continues to accompany localities where its power plants are located to improve infrastructure system and living quality of local people.
- The Corporation/Vinh Tan Thermal Power Company also coordinates with Binh Thuan Television Station, Vietnam Fatherland Front Committee of Binh Thuan province to implement the “House of Love” program, giving houses of gratitude to families with difficult circumstances in Binh Thuan province worth 100 million VND/unit. Since 2019, the program has handed over 34 houses of gratitude.
- Phu My Thermal Power Company, Mong Duong Thermal Power Company, Buon Kuop Hydropower Company, Vinh Son - Song Hinh Hydropower JSC has given 19 great solidarity houses to families with difficult circumstances in Binh Thuan province.
- EVNGENCO3 Youth Union also supports to build rural roads by using ash concrete from Vinh Tan Thermal Power Plant, implement rural road lighting project with 3km long by doing solar power in provinces such as Tay Ninh, Ba Ria-Vung Tau.
GRI 207-1
TAX APPROACH
- The Corporation declares and pay taxes in compliance with the applicable laws including: corporate income tax (CIT), value added tax (VAT), business license tax, personal income tax (PIT) earned from stock investment and other taxes as prescribed by the laws.
- Besides, every subsidiary, associate company is entitled to special tax rate due to preferential tax incentives entitled for investment, construction of power plants.
- Corporate income tax (CIT): The Corporation pays CIT according to Decree 218/2013/ND-CP dated December 26 2013 of the Government on implementation of amended laws, supplement of some articles of CIT laws, Decree 126/2020/ND-CP dated October 19, 2020 of the Government detailing some articles of tax administration laws and VAT related guiding documents: applied to business and production activities of the Corporation in accordance with laws on VAT 2008 and the law amending and supplementing a number of articles of laws on VAT 2013 and implementation guidance.
- Personal income tax: The Corporation and its shareholders with incomes earned from share investment must pay personal income tax in accordance with the applicable laws.
Environmental issues
Be aware of importance of energy saving during power production process is a key factor to ensure sustainable development, Power Generation Corporation 3 has implemented many solutions to reduce heat losses, strengthen digital transformation and optimize fuel inventory.
FUEL VOLUME USED FOR POWER PRODUCTION 2022
Power plant | Fuel type | Unit price | Volume | Supplier |
---|---|---|---|---|
Non-renewable fuel | ||||
Phu My Thermal Power Plant | Natural gas | million BTU | 80,870,221 | Petrovietnam Gas Joint Stock Corporation |
DO | Liter | 1,711,065 | Petroleum suppliers | |
Self-consumption of electricity | kWh | 214,213,759 | Self-producing and purchasing | |
Vinh Tan 2 Thermal Power Plant | Coal dust | Tons | 3,088,301 |
|
DO | Liter | 5,946,741 | Many suppliers | |
Self-consumption of electricity | kWh | 466,597,812 | Self-producing and purchasing from EVN (power from the grid) | |
Mong Duong 1 Thermal Power Plant 1 | Coal dust | Tons | 3,393,937 |
|
DO | Liter | 3,311,547 | Many suppliers | |
Self-consumption of electricity | kWh | 712,126,542 | Self-producing and purchasing | |
Renewable fuel | ||||
Vinh Tan 2 Solar Power Plant | Heat radiation | W/m2 | 1,643,602 |
The Corporation is exploiting and using water sources as follows:
- Hydropower water use: stored in reservoirs upstream through a system of energy routes, flowing through the turbine and discharging the plant downstream through a system of canals and pipelines to rivers and streams.
- Cooling water in hydropower plants: cooling water intake from rivers or sea through water intake structures, flowing to condensers for heat exchange, then discharging into rivers or sea through cooling water drainage canals.
- Besides, thermal power plants also use running water (from suppliers), lake water or sea water to produce demineralized water for use in thermal power plant; sea water is also used for treatment of exhaust fumes before going through chimneys.
- Industrial wastewater: generated during production activities of the plants including oil contaminated wastewater, coal and chemical contaminated wastewater, etc. Wastewater is collected and treated at concentrated wastewater treatment plants, then re-used for appropriate purposes or discharged into receiving sources after properly being treated.
- Domestic wastewater: small amount, re-used for tree irrigation or discharged into receiving sources after being properly treated.
- HydroPower Plants have fully installed monitoring equipment systems to supervise the process of exploitation, use of lake water and transferred data to the authorities as stipulated.
- Thermal Power Plants have fully installed online surface water, sea water and wastewater monitoring systems and transferred data to local Department of Natural Resources and Environment as stipulated.
- Data is also transferred to headquarter of EVNGENCO3 to supervise, control and contribute to environmental management in a prompt, accurate and effective manner.
Power Plants | Parameter | Unit | Volume |
---|---|---|---|
Phu My Thermal Power Plant | Clean water | m3 | 1,085,951,808 |
Vinh Tan 2 Thermal Power Plant | Clean water | m3 | 1,185,789,833 |
Mong Duong 1 Thermal Power Plant | Clean water | m3 | 1,223,261,000 |
Buon Kuop Hydropower Plant | Total flow of running water | m3 | 3.141.931.680 |
Buon Tua Srah Hydropower Plant | Total flow of running water | m3 | 6,594,492,960 |
Srepok 3 Hydropower Plant | Total flow of running water | m3 | 8,584,729,920 |
Volume of wastewater GENERATED in 2022
Power Plants | Volume (m3) |
---|---|
Phu My Thermal Power Plant | 298,112 |
Vinh Tan 2 Thermal Power Plant | 99,020 |
Mong Duong 1 Thermal Power Plant | 831,640 |
- Spacious land areas inside Thermal Power Plants are covered with green trees, except for areas for prevention of fire and explosion. Trees are also planted in surrounding areas of slag yards in coal thermal power plants.
- Hydropower plants also plant trees at the additional construction site of the plants, they also pay forest environmental service fees to the State budget.
- Power plants using surface water for producing power, cooling machine and equipment pay the charge of granting water exploitation right and water resource tax.
- Power plants generating wastewater discharged to receiving sources after being treated pay environmental protection fees on wastewater.
Parameter in 2022
Target | Unit of measurement | Phu My Thermal Power Company | Vinh Tan Thermal Power Company | Mong Duong Thermal Power Company | Buon Kuop Hydropower Company |
---|---|---|---|---|---|
Total volume of gas emissions | million m3 | 33,620.26 | 10,555.99 | 23,233.54 | - |
- Exhaust fume from thermal power plants is relatively clean due to clean input energy combined with burners with advanced emission control technology, therefore, concentration of exhaust emissions which can cause bad impacts on environment such as SOx, NOx, dust is still lower than the allowable limit. Exhaust gases after passing through the heat recovery will go into high chimneys and releases to receiving sources.
- Exhaust gases in coal-fired thermal power plants after coming out of combustion chamber will go SCR system to reduce NOx and FGD system to remove SOx as well as ESP system to remove dust. Then, exhaust gases will go into high chimneys and release to receiving sources. Therefore, concentration of exhaust emissions which can cause bad impacts on the environment is still lower than the allowable limit.
- The current greenhouse gas emissions in thermal power plants are mainly CO2. EVNGENCO3 is studying and researching greenhouse gas emissions reduction technology to reduce greenhouse gas emissions at the lowest level.
- Coal-fired thermal power plants of EVNGENCO3 have fully installed online emission monitoring system and transfer data to local department of natural resources and environment as stipulated.
- At the same time, data will be transferred to headquarter of EVNGENCO3 to supervise, control and contribute to environmental management in a prompt, accurate and effective manner.
- A majority of hazardous waste is generated in thermal power plants mainly including granule shaped abrasive materials with hazardous components (sand, abrasive powder, etc.), fluorescent lamp sand and waste glass; oil and grease waste, oil contaminated water from oil water separator; filter material (oil filter material) contaminated with hazardous components; chemicals and laboratory chemical compounds containing hazardous components; gloves, rags contaminated with waste oil; refractory lining materials with hazardous components; oxidizing substances.
- Hazardous wastes will be collected, transported and treated by approved waste disposal units.
- Solid waste generated in workplace as well as from food and drink preparation, domestic waste.
- Ash and slag generated from power production activities in coal-fired thermal power plants.
- Ordinary industrial solid waste: poor-quality materials.
- Non-hazardous waste is collected, transported and treated by approved waste disposal units.
- Regularly propagate, disseminate and implement the policy of thrift practice, combat wastefulness of natural resources to each employee; monitoring, inspecting, urging and reminding.
- Viewpoint: effective exploitation and resource efficiency, effective use of fuel, materials, chemicals and stationery, etc. optimizing re-use and recycling of materials, fuels, stationery, poor quality scraps, limitation for waste disposal.
- Ash and slag exploitation as a from of products or goods that can be exchanged, sold or used in building activities or construction of roads, ground leveling, etc.
Parameters in 2022
Targets | Unit of measurement | Phu My Thermal Power Company | Vinh Tan Thermal Power Company | Mong Duong Thermal Power Company | Buon Kuop Hydropower Company | Total |
---|---|---|---|---|---|---|
Ordinary solid waste (domestic and industrial wastes) | Tons | 76.71 | 155.45 | 277.09 | 2.00 | 511.25 |
Ash and slag from coal-fired thermal power plants | Tons | - | 1,429,496 | 2,045,762.11 | - | 1,429,496 |
Hazardous waste | Tons | 194.61 | 121.89 | 226.92 | 1,310.00 | 1,626.50 |
Social issues
GRI 401-1
NUMBER OF NEW HIRES AND TERMINATED EMPLOYEES
- A number of new hired employees of the Corporation in 2022: 74 employees
- A number of terminated employees of the Corporation in 2022: 106 employees
GRI 401-2
BENEFITS ATTACHED TO FULL TIME EMPLOYMENT
- Power Generation Joint Stock Corporation 3 always ensures competitive income and full welfare policies for employees such as health insurance, vacation time, flexible working model, learning and self-development opportunities abroad/at home, maternity benefits for female employees.
GRI 401-3
PARENTAL LEAVE
- The Corporation offers paid parental leave benefits following local legislation, employees are entitled to maternity leave with social insurance benefits and allowance as stipulated in Collective Labor Agreement.
- Strictly comply with regulations of the State, Ministries, Departments and EVN on working environment monitoring upon periodical inspection and assessment, ensure all indicators reviewed according to accepted standards, periodically carrying out employee satisfaction and health check.
- Make the work environment more beautiful, green and clean, ensure occupational safety and labor hygiene; regularly checking pandemic-related workplace safety and hygiene, especially prevention and control measures during Covid-19 pandemic.
- Organize and participate in medical training courses, first aid training, occupational health and safety.
- Arrange rehabilitation services for employees with health of grade 4 or 5 or those engage in heavy, dangerous or hazardous jobs or extremely heavy, hazardous, dangerous jobs according to the list of heavy, hazardous, dangerous jobs stipulated in Circular No 11/2020/TT-BLDTBXH dated November 12 2020 of Ministry of Labor, War Invalids and Social Affairs.
GRI 403-1
OCCUPATIONAL HEALTH AND SAFETY
- The Corporation has established health management profile as stipulated and monitored personal health via human resource management system (HRMS), it makes it easier for both employees and employers to monitor their health and assignment of work in a way that suitable with specific nature of work.
- Medical rooms of affiliated units have been fully equipped with necessary medical tools, offering training courses for medical staff with grant of practicing certificates, drug distribution, taking care of workers with common diseases as well as conduct basic first aid, monitoring and taking them to approved hospitals with contracts for initial medical services for effective treatment, ensuring health for employees.
GRI 403-3
OCCUPATIONAL HEALTH SERVICES
- The Corporation/affiliated units organize periodical health check ups for employees at least once a year as stipulated, once in every 6 months for those with heavy or hazardous jobs; creating conditions for employees to take intensive health examination to identify early signs of health issues and effective treatment. In addition, some units have actively organized gynecological examination for female employees twice a year.
- The Corporation offers health care benefits through health insurance plan for employees y-o-y.
GRI 403-5
WORKER TRAINING ON OCCUPATIONAL HEALTH AND SAFETY
- Proactively participate in intensive training courses on medical profession to improve qualifications and professional skills of medical staff at the Corporation’s medical units, ensuring adequate records and grant of practicing certificates, training participation certificates.
- The Corporation has coordinated with related parties to organize training courses to improve knowledge of occupational health and safety, regularly propagates occupational health and safety for employees to minimize risks and hazards at the workplace.
GRI 404-1
AVERAGE ANNUAL TRAINING HOURS PER EMPLOYEE
In 2022, the Corporation and its affiliated units have conducted 13,810 training sessions with participation of 2,071 people (31,884 e-learning sessions) with total training cost of VND 59.55 billion, ensuring at least 40 hours of training per year per employee.
GRI 404-2
PROGRAMS FOR UPGRADING EMPLOYEE SKILLS AND TRANSITION ASSISTANCE PROGRAMS
- As its annual training program, the Corporation always focuses on training contents associated with business and production tasks upon model of learning organization, building up a highly-skill and professional human resource.
- Take initiative in training and re-training activities, especially in field of digital transformation, ensuring physical health and capability for workforce to complete their tasks flexibly, safely and effectively; focusing on intensive training programs associated with domestic and overseas training courses (generator disassembly and calibration specialists in Switzerland, steam turbine repair & maintenance, wind turbine repair & maintenance in U.S.A; CFD simulation software in Germany; offshore wind farm training programs in Australia).
GRI 405-1
EMPLOYEE DIVERSITY AND MANAGEMENT TEAM DIVERSITY
- EVNGENCO3 always ensures fair recruitment without any gender discrimination related to welfare policies.
- Engage in assessment and obtain Global Gender Equality Certificate, this affirms EVNGENCO3’s determination to promote gender equality in the workplace toward sustainable development of the Corporation based on the benefits of health and equal working environment.
EMPLOYEE STRUCTURE
- Give periodical support to 47 students with difficult circumstances, children orphaned by Covid-19 in HCMC on a monthly basis till the complete the 12th grade worth VND 1.28 billion per year.
- Implement the “School Milk” program for primary schools in Phu My and Vinh Tan worth over VND 1 billion, donate 50 computers and learning equipments for schools in Phu Yen and Binh Dinh provinces affected by natural disasters and storms.
- At the same time, the Corporation & its subsidiaries visits and donates gifts to villages and people in downstream areas, families under preferential treatment policy and poor households on occasion of holiday and Tet; humanitarian blood donation in response to Pink Week; customer appreciation month; construction of school and roads, etc. upon local actual needs, and EVN/EVNGENCO3 policy and spirit.