Competitive Generation Market: a stimulus for GENCO 1

After five years of participation in the Vietnam competitive generation market (VCGM), the Power Generation Corporation 1 (GENCO 1) has undertaken stable electricity generation, step by step expanding its investments in new power generation projects. The VCGM has created a motivation for GENCO to make innovations and enhancing its competitiveness in the electricity market.

Active "innovation"

As a single member limited liability company owned by EVN, GENCO 1 operates under the parent company – daughter company model. As of September 2017, GENCO 1 has a total installed capacity of 6,418 MW with 16 power plants in officially commercial operation and 15 power plants directly participating in the VCGM (Duyen Hai 3 Thermal Power Plant is scheduled to join the electricity market in early September 2017). The electricity market has made a remarkable impact on the operation and management of production and business activities of the Corporation and its member companies.

After joining the VCGM, GENCO 1 has set up the Electricity Market Business Department to study, monitor, predict and analyze variable market demands in order to work out high efficient and competitive pricing plans and offers.  Information technology infrastructures such as SCADA / EMS, HMIs systems to remotely monitor the operation of power plants; electricity market software of GENCO 1, etc. have been invested properly.

Every month, the Board of Directors meets with the Electricity Market Business Department to analyze and evaluate reasons as well as effectiveness of member companies in the market for each month, from which operation and maintenance plans, business plans are formulated accordingly. As a result, incident rates of power plants have declined in comparison with these ones before the market, while the price offerings of hydropower plants help these plants avoid operation modes that could adversely affect power units, etc. These effects have brought about higher sales and profits than before entering the market.

Specifically in 2016, the total revenue of GENCO 1 reached VND 17,205.35 billion with the total actual generation output reaching 15,594.37 million kWh. In the first six months of 2017, the total revenue amounted to VND 14,101.66 billion with the total actual generation output reaching 12,042.17 million kWh (given that Duyen Hai 1 Thermal Power Plant has officially participated in the VCGM since January 1, 2017).

  • 11/09/2017 04:35