OUR OPERATION
RESPONSIBLE POWER GENERATION
Our Approach
Excellence enables us to deliver the expected generation output to our customer in the safe and reliable manner that we are known for worldwide. To drive continuous improvement in our technical performance, we constantly benchmark ourselves against the top-decile power plants in the United States. Policies and processes emphasize operating efficiency, reliability, and availability of energy supply, while prioritizing the reduction of coal usage where possible and operating within environmental limits to make sure that we maintain a clean environment. We make sure that Mong Duong II is ready to operate at full available power on request, unless there is a change in a unit’s operating status and except during necessary maintenance or forced outages. Our plant personnel carry out routine activities to manage the plant’s status and configuration ensuring that all areas and critical parameters of our operations are continually monitored and equipment is operating normally. All personnel are trained in routine inspection procedures that are relevant to their responsibilities. We are prepared for any condition that may be reasonably expected to occur during periods of shortages on the electric grid. During such periods, our Shift Lead makes operational decisions to maximize each unit’s availability and ability to support grid operations. The Plant Manager oversees the key performance indicators of our operational performance, environmental impacts and occupational health and safety aspects, along with compliance with customer requirements.
Message From The Plant Manager
To Our Stakeholders, I believe that everyday is a good day when you get to work in a power plant. The performance of Mong Duong II Power Plant over the past two years further strengthened this belief as we started normalizing our operations. We saw first-hand the great potential for positive impacts of the work we do at Mong Duong II and found our responsible approach to power generation recognized, as we received the prestigious “2016 Power Utility of the Year – Vietnam” and the “Green Business Awards 2016”
Ensuring Operational Excellence
Power Utility of the Year – Vietnam 2016
awarded after our first complete year of operations
319 technical qualification cards
issued to our Operations Team (2016–2017)
5,695,113 MWh
6,394,476 MWh
3,389,354 MWh
3,780,403 MWh
2016
2017
Gross Generation
Net Energy Output
Reducing a power plant’s heat rate
Reducing a power plant’s heat rate means lower fuel consumption, lower costs, and is better for the environment. We posted minimal deviation from our target heat rate and we continue to work towards achieving our target over the coming years.
Average Plant Availability
83.10%
2015
Total hours of outage duration increased in 2017 due to hydropower plant was priority dispatched. However, the power plant was ready for operating at anytime.
99.41%
2016
Forced outage hours
99.41%
2017
Reserve shut down hours
Our Major Operational Improvements for 2016-2017
US$ 653,000 savings in operation cost
12,430 tons of CO2 reduced
54 tons of SO2 reduced
Reduce emissions through optimization of Soot-blower System
We eliminated vibration issues in the furnace soot-blower system and reduced steam flow to a minimum without requiring significant investments. A change in the standard operating procedure also led to reductions in heat rate, our constant goal, given its positive impacts on costs and the environment.
US$ 570,000 in operational cost savings
Lower chemical consumption rate through optimization of Cycle Chemistry
We eliminated vibration issues in the furnace soot-blower system and reduced steam flow to a minimum without requiring significant investments. A change in the standard operating procedure also led to reductions in heat rate, our constant goal, given its positive impacts on costs and the environment.
> US$ 53,000 in total savings (annual)
Waste Oil Reuse for Reclaimer Chain Lubrication
Reclaimers that convey coal from the coal shed to the silo has an auto-lubrication system that requires 9,600 liters of fresh lube oil annually. This oil is wasted as it mixes with coal dust and sticks to the rollers. With this improvement project, used oil that matches the specification of the oil needed for the reclaimer chain lubrication is now collected from the gearbox. Stored separately from the normal waste oil, this oil is filtered and recycled for use in the reclaimer auto-lubrication system, reducing annual costs of the lube oil and its attendant processes.
Prioritizing the Environment
Environmental protection is the responsibility of every AES-VCM employees and contractors. We have an Environmental Policy that guides all Mong Duong II’s operations and personnel behavior to ensure high standards of environmental performance. We meet and, where possible, exceed all relevant requirements, standards, and legislation imposed by the local, regional, and national agencies of Vietnam, the IFC Performance Standards, and the AES Corporate Global Environment Standards. Our Physical Impact Rating Matrix, Risk Assessment Criteria, and Impact Significance Matrix identify aspects of our operations with significant impacts on the environment, identifying such factors as scale, probability, cost to business, and stakeholders concerned. We have Integrated Management Systems (IMS) on understanding, anticipating, managing, and mitigating these various environmental impacts. The ISO 14001:2015 is the latest update of the standard, with its expansion of the scope and coverage of the organization’s environmental management as well as new requirements for leadership and third-party interactions, among others. And while AES-VCM is known for having a truly robust safety culture, the OHSAS 18001 demonstrates our deeper commitment to a safer workplace for our employees and contractors. We welcome these additional measures as a path to better stewardship of both our natural and human resources and, inevitably, as a mark of our leadership.
AES-VCM recognized for its environmental responsibility
We received various important recognitions that affirm our responsible approach to power generation. In 2017, we received the Green Business 2016 Award from the Vietnam Association for Conservation of Nature and Environment, Vietnam Environment Administration, and Human & Environment Forum. The Vietnam Government’s Committee for Science, Technology, and the Environment also expressed its visiting delegation’s approval of Mong Duong II’s environmental protection activities as well as our social development program.
Always Incubating Innovation
Meet or exceed requirements or standards of practice
Routinely assess the effects of our activities
Implement hazard identification and pollution-control methods
Reduce or eliminate emissions and waste
Communicate our Environmental Policy to all stakeholders
Plan for environmental investments based on the evaluation of the local, regional, and global environment
Our Objectives
Over the last decade alone, APEX projects have delivered over US$1 billion in benefits for the entire AES. Apart from the financial benefits from these award-winning innovations, they bring prestige to the winning teams because the practices are adapted in AES businesses worldwide, where applicable.
Driving excellence, teamwork, and constant learning at AES-VCM is APEX (AES Performance Excellence Competition), a global AES program and competition that push AES People to create innovation projects that deliver significant revenues, savings, and efficiencies to the company. In 2016 and 2017, the AES-VCM team won first and second place in the APEX Global Competition for its operation improvement initiatives.
A Greener Mong Duong II
4 Projects
Major Emissions Reduction Projects
5,092 MT CO2
Estimated reductions in annual emissions
9,589,257 kWh
Total kWh savings in 2017
• Coal shed – 448,652 kWh
• Power plant processes – 7,250,938 kWh
• Building services – 1,889,667 kWh
US$287,678
Annual estimated benefit in terms of cost savings
10-kW solar panel
installed in Housing Colony
8,703 kWh
Generation of over a 12-month period
ZERO
GHG emission
10%
Capacity factor
We proactively identify opportunities to apply green energy technologies and operational efficiencies that help lower our emissions and promote greater cost savings. As of 2017, our investments in efficiencies and emissions reduction total almost US$300,000. These green projects align with the overall green energy solutions of various scales in AES businesses worldwide to usher in the broader adoption of clean technologies in power generation. This is in line with our new vision of improving lives by accelerating a safer and greener energy future
Our Approach
We follow a strict Emissions Control Procedure, and plant is equipped with an environmental facility for emissions control, specifically Selective Catalytic Reduction for NOx Emission Control, Flue Gas Desulfurization to minimize SOx concentration in the emissions, and an Electrostatic Precipitator System for particulate control before releasing flue gas into the environment.
When it comes to maintaining our emissions levels, we are guided by the most stringent limits from the local regulation, specifically the National Technical Regulation on Emission of Thermal Power Industry, and the IFC Guidelines on limits for NOx, SO2, CO, and particulate matter. We conduct ambient air quality testing in fulfillment of the requirement of the International Finance Corporation, and use worst-case scenario modeling to understand and manage our impacts further. Our IMS for emissions control provide for notification via AES Online whenever emissions levels exceed internal operational limits, and notifications to applicable authorities when emission levels exceed the limits of local regulations and World Bank requirements.
GHG Emissions
* Units were offline for five months in 2017 due to reserve shut down requested by the customer.
** Indirect emissions from the use of diesel for service vehicles and heavy equipment (on the assumption that the gasoline contain 10% ethanol, following government regulations) and from the use of unleaded gasoline for vehicles use
Other Emissions
2016
2017
NOx (in lbs.)
SO2 (in lbs.)
CO (in lbs.)
Mercury (in lbs.)
Particulate Matter*
* All type of dust size: TSP, PM10, and PM2.5 *
* Units were offline for five months in 2017 due to reserve shut down requested by the customer, thus the lower emissions.
Managing Our Water Impacts
Our Approach
The Water Conservation and Wastewater Management System provides for the monitoring of operational parameters and annual targets in terms of water use and wastewater generation. We use effective sequencing to minimize water use or buildup, identify processes or equipment that have the potential to cause wastewater generation or contaminate our water recycling source, and minimize the production of water that enters the wastewater stream. The IMS procedure on effluents control ensures regulatory compliance. In case of emergency spills or contamination, we have an Emergency Plan quick response and recovery from any pollution incident. Because of this, there were no significant spills during the reporting period
* Monitored by a third party and authorized by the State; raw water is reused by the company
Minimizing Waste Generation
Our Approach
We have IMS procedures on managing hazardous wastes, including hazardous chemicals—from purchase and delivery, storage and inventory, to labeling, handling, transfer and disposal—to effectively minimize, if not eliminate, risks and threats to people and the environment. We have protocols for: determining if a waste material is hazardous; conducting a Hazardous Waste Inventory, registration and reporting activity; and handling, labeling, storing, and segregating hazardous waste, with full consideration for the compatibility of the different types of wastes. Should there be an emergency, we have a contingency plan and procedures, and oil and chemical spill response plans.
*All hazardous wastes are collected, treated, and disposed of by an accredited third party. Only non-hazardous and biodegradable wastes are disposed of directly by the organization.
** Fly ash and Bottom ash has been transported by ash pipeline by HCSD (High Concentration Slurry Disposal) and storage on-site at the Ash pond 1&2.
Leading in Occupational Health and Safety
Our Approach
Safety is a condition of employment. Our vision is to be recognized as a global leader for progressive and best-in-class health and safety practices. We have a robust safety management system and a structured, holistic implementation process designed to create Safety Excellence throughout our operations.
Our Safety Policy demonstrates our proactive and forward-thinking approach in ensuring safety at the workplace. We further strengthened our safety standards with our international certification in occupational health and safety, OSHAS 18001, which we received in 2017. The standard provides us with a consistent framework for implementing a safety management system that identifies, controls, and minimizes the risks associated with health and safety in the workplace.
TOTAL SAFE MAN-HOURS
2016: >1.7 million hours
2017: > 1.6 million hours
Different Ways We Keep Our People Safe
We have a Health and Safety Committee, which provides guidance on and monitors our overall safety performance. These include the regular conduct of safety meetings and safety training, development of accident prevention and contingency plans during disasters, coordination with the local authorities, safety reporting, among others. In March 2017, we finalized the composition of the committee to 9 primary and 9 secondary members, headed by the Plant Manager. Each committee member is expected to have an active and enthusiastic attitude and participation.
For emergency cases, we have developed emergency response plans for various scenarios, with appropriate procedures. It is the responsibility of the EHS Manager and the EHS Engineer to ensure emergency preparedness and that response equipment is adequately provided and maintained for their continuing operability.
Our safety practices evolve, because, similarly, laws and regulations, technologies and human behavior are never static. We make sure to monitor our OHS performance to study successes and challenges and regularly revisit our OHS procedures to meet our OHS needs. We also keep abreast of the latest OHS developments in legislation and standards. Consultations, meetings, and training on the topics are regularly made available to all plant personnel for cooperative commitment at all levels of the organization.
Job Safety Analysis and Pre-Job Briefing
Emergency Preparedness
Safety Walk and Safety Inspection
Safety Training and Supervision
Communication and Reporting
Provision of Plant and Equipment
Risk Assessment and Hazard Identification
Annual physical examination
Medical missions and health insurance
Work Place Safety
Stop Work Authority
We consider it the right and obligation of our People and contractors to stop work as soon as they identify a situation or behavior that makes them feel to be unsafe. After an unsafe situation is identified, we stop the job or work immediately regardless of its priority, and it does not matter if it is later determined that the work stoppage was an error. We have zero tolerance for any condition that compromises occupational health and safety of all stakeholders so that there are no negative consequences when stopping work for safety reasons. We highlight all Stop Work Authority reports in our monthly safety meetings to emphasize its priority.
Extending Our Sphere of Safety Excellence
Contractors and Suppliers – We have a Contractor Safety Management Program that applies to all our suppliers, contractors, and subcontractors. It describes the safety and environment management requirements, roles, and responsibilities to maintain a safe and healthy workplace. Environment, health, and safety criteria are part of our pre-qualification assessment of every supplier, contractor, and subcontractor. This has been improved in 2016 with the addition of more EHS compliance items environmental policy, EHS leadership, waste and spills management and prevention, training and orientation, and incident investigations.
Local Communities – Part of our celebration of Values Day are activities with our local communities that promote health and safety. In 2016, we conducted a traffic safety orientation and donated 600 high-quality motorcycle helmets to students and teachers at Mong Duong High School. In 2017, we handed over a sports and cultural playground to Cong Hoa Commune and promoted the significance of health and wellness to the community.
