Competitive power market on the rise

14:08 | 23/08/2016 Industry

(VEN) - Over the past four years the domestic competitive power market has seen remarkable progress in terms of legal framework, infrastructure, human resources and trade.

Competitive power market on the rise

The power generation market proves effective

According to the Ministry of Industry and Trade’s Electricity Regulatory Authority of Vietnam (ERAV), as of June, 72 of 115 power plants joined the market, with total ordered capacity of 16,719MW, a 2.3-fold increase against July 2012 when the competitive power market was established.

The domestic competitive power market has contributed to ensuring national energy security, avoiding monopoly, improving corporate transparency in scheduling and operating power plants and bidding. It also has reduced additional loads and costs while increasing the efficiency and effectiveness of power production and trading.

ERAV Deputy Director Dinh The Phuc said that the department has cooperated with related agencies to adjust the legal framework for the competitive power market to fit the current situation. As a result, power administrative procedures were simplified and power information, human resource training and management were gradually improved.

However, problems remain in the market and need to be addressed immediately including scarcity of water for hydropower plants, low ordered capacity (just 45 percent of the total designed capacity) and a vague market mechanism for multi-purpose hydropower plants, BOT and industrial zone-served power plants. Some new power plants have failed to invest in the supervisory control and data acquisition (SCADA) system while several others have operated poorly after investment.

Boosting the competitive power wholesale market

In addition to improving the domestic competitive power market, the Ministry of Industry and Trade put the market into pilot operation (on papers) on January 1, 2016, Dinh The Phuc said.

Over the past six months of operation, power corporations have initially calculated, made statistics and garnered knowledge about power market regulations, power supply contracts, and basic information technology (IT) infrastructure. Especially, they have been fully aware of the importance of additional load forecasts.

To date, all the five power corporations have IT networks able to perform power bill e-payment. Power metering has been facilitated, with all data collected and synchronized.

Power corporations have been able to monitor and refer to daily power bills through installed software since March 2016. Human resources have trained at home or abroad, contributing to the improvement of service quality.

On the premise of achievements, the ERAV will further improve the legal framework for the domestic competitive power market, enhance IT infrastructure, monitor and collect additional load statistics, separate power supply costs from power retail prices, and train staff members./.


Dinh Dung