Mr. Nguyen Quoc Dung
Reporter: Could you explain the reason for implementing DR Program in Vietnam?
Mr. Nguyen Quoc Dung: Currently, Vietnam’s power system has had no longer back-up sources while commercial power growth rate has remained a very high rate of about 10%/year. During the peak hours, the demand for power consumption increases, without DR programs, the power system may face the overload situation, could impossibly supply power to a large number of customers. If DR is not implemented, we will have to make a huge investment in power source and grid to be able to meet the maximum capacity level of the power system. Such a high level of capacity can last only for 10 to 15 minutes, but its required investment capital is too large, leading to very high unit costs for power production, putting tension on selling price, directly affecting power users.
Facing such tension, considering the pros and cons, we can easily realize the importance of implementing DR programs: Encouraging customers to actively reduce their power consumption in peak hours, contributing to reduce maximum capacity of the power system, overload of the grid, contributing to improve economic efficiency of the power system. At the same time, it helps the community to be more aware of effectively saving, using power, contributing to protect the country’s resources. Currently, there has been a lot of room for power saving.
For enterprises, the effective use of power also contributes to reducing production costs for products, thereby improving the competitiveness for their goods. Not only in Vietnam, DR programs with such big goals have been widely implemented in many countries around the world.
Reporter: So what is the key object that the DR Program aims for, Sir?
Mr. Nguyen Quoc Dung: All power users can join DR Program.
However, the implementation of DR needs to follow the roadmap. In the first phase, it is required to focus on industrial - construction demand of load with customers consuming 57% of the entire system’s power output. At the same time, as specified in the Government’s Decision, the list of key energy users includes about 5,000 customers, who are subject to energy audit. EVN and the power corporations focus on introducing and signing an agreement to implement DR Program with these customers in 2019. As calculated, if this group of customers save power at only 1%, the corresponding power consumption will be about 700-800 million kWh/year, reducing tension on the power system.
Reporter: Some enterprises are not willing to participate in the DR program, because they are afraid that it could affect their business results. Could you tell us about your view on this issue?
Mr. Nguyen Quoc Dung: In my opinion, the reason making customers hesitate and delay their participation is the lack of proper understanding on the mechanism and benefits gained from the program. First of all, events of demand response will only take place in a very short time, maybe only about 30 minutes to 1 hour, in case of too high increase in the system’s peak load capacity and power output.
Additionally, DR Program is alternately implemented among target customers, each of them may only perform the program once or twice a year. I would also like to make it clear that not until now have we implemented the DR Program, in fact, many large customers have been familiar with the DR Program through electricity pricing mechanism, with the price list of three applied levels: Normal hours, peak hours, off-peak hours.
Reporter: Could you tell more about the benefits for customers when participating in this program, Sir?
Mr. Nguyen Quoc Dung: The implementation of DR programs not only reduces the investment in the power system, partially reducing the impact on the power production costs and power prices, but also brings benefits to customers. EVN is developing special care programs, offering incentives to improve the reliability of power supply and the quality of electricity services exclusively for customers signing for DR program.
Over the past time, EVN has actively applied modern technologies such as: hotline repair, maintaining substation without power-outage, deploying n-1 power grid, improving access-to-electricity index and improving reliability of power supply, implementing customer gratitude programs, etc. By this foundation, EVN and its power corporations have prepared sufficient resources and capacity to provide care services in the best way for customers participating in DR program.
In the world, commercial DR programs are quite popular and customers are offset for part of some costs associated with unused output in peak hours. In Vietnam, the Ministry of Industry and Trade, the Ministry of Finance, EVN and relevant agencies are trying to develop the same commercial DR Program, bringing the best benefits to customers in the shortest time.
Benefits gained from DR program
Reporter: In order to realize the big goals when implementing DR Program, what is EVN’s recommendation to the State management agencies as well as customers, Sir?
Mr. Nguyen Quoc Dung: Under Decision No. 175/QD-BCT dated 28th January 2019, through the DR Program, we will strive to reduce the peak load capacity of the national power system by at least 90MW in 2020 and 300MW in 2025.
In order to accomplish these goals, EVN has implemented research and forecast on load. Power companies have carried out propaganda, mobilized customers, prepared technology infrastructure for DR events, developed related incentive programs, etc. However, efforts made by only EVN would not be adequate.
EVN proposed the relevant ministries and agencies to promptly supplement mechanisms and complete legal basis to implement commercial DR programs, create diversity and increase benefits and attract customers. At the same time, EVN wishes to receive support and coordination from local authorities in propagating and mobilizing enterprises and people in the area to clearly understand their responsibilities and benefits of DR Program.
EVN hopes that power users will be aware of the benefits from DR program as well as their responsibility to the social community when using energy. I do think that, it would really help if we had the same viewpoint when considering at DR: Implementing the DR Program to prevent overload in power system, so that power will be adequate for all the people, the power system will be operated in the most economical, effective and safest manner.
Reporter: Thank you for your time!