EVN no longer has monopoly over the power purchase
Mr. Nguyen Tuan Anh - Deputy Director of Electricity and Renewable Energy Department (Ministry of Industry and Trade - MOIT) said that Vietnam's electricity market has developed through three levels: competitive power generation market; competitive wholesale power market and competitive retail market. From 2012 to now, the two markets have achieved positive results.
Delegates participate in the online seminar
The competitive power generation market has been basically completed and EVN no longer plays a monopoly role in the electricity purchase, but the sector has 5 more electricity corporations..
MOIT is studying to deploy a competitive power retail market, which will be piloted and expected, after 2023, to be gradually shifted from the State's regulation of electricity prices to the market price mechanism.
Thus, the development of the electricity market in Vietnam is in line with the Politburo's Resolution 55, in gradually applying market prices, creating a favourable competitive environment for economic sectors to participate in developing the electricity sector, creating a fair and transparent competitive environment, eliminating monopoly in the power production and business.
MOIT is studying the mechanism of selling power directly from power producers to power consuming units. This mechanism will create incentives to encourage investment activities of all economic sectors in the development of power sources, especially renewable energy; stepping forwards to replicating the mechanism in the competitive power retail market, creating an environment to ensure the spirit of Resolution No. 55.
Mechanisms to encourage private sector’s investment in energy are needed
Mr. Nguyen Tam Tien - General Director of Trung Nam Group said that the private sector and the public sector must attach mutual interests. The Groups’ investment in the construction of the transmission grids has supported strongly by the Government, MOIT and EVN. This is a new point and partly realizes the spirit of Resolution 55. However, there is a need for a mechanism to promote this issue.
Mr. Nguyen Tuan Anh said that, for the transmission grid, the State should retain the right to manage and operate the backbone lines and main transmission axes to ensure energy security. The socialization in grid investment should be applied to the branch connections of investors for purpose of both reducing financial pressure on EVN and ensuring synchronous operation of power sources and grids.
In the near future, MOIT will conduct research and propose amendment in the Electricity Law so that there is a basis for separating the areas for private enterprises and ones are still invested and operated by state-owned enterprises, and so on.
Development of smart grids
Attending the seminar, Mr. Nguyen Tai Anh - EVN Deputy General Director said,
Mr. Nguyen Tai Anh - Deputy General Director of EVN making a speech at the seminar
As currently, the construction of smart power systems is a trend of the world, Vietnam is gradually building power smart grids under the direction of the Government. The scheme for developing smart grids in Vietnam was approved by the Prime Minister in Decision No. 1670/QD-TTg dated 8 November 2012 and the overall scheme for developing smart grids in Vietnam was approved by MOIT on 11/25/2016; Among them, there are many component projects implemented by EVN closely following the proposed project objectives.
For the important power load regions, EVN has basically completed the construction of 500kV loop circuits to supply power for the 220kV transmission grid and the 110kV distribution grid with the goal of meeting N-1 criteria (ensuring power supply in the case of any 1-element incident on the grid). For particularly important loads (for political centers, airports, etc.), in addition to the high reserve level of the grid, the on-site generator system is also arranged available to meet the requirements of un-interrupted power supply.
Investing in construction of power and grid projects requires a huge amount of capital. Based on the approved national power development plan and provincial/municipal power development plans, EVN will give priority to investment in developing power grid works synchronized with power sources and grids to improve transmission capacity and improving power supply capacity, especially for important and particularly important load regions as per the guiding spirit of Resolution 55.