Vietnam Mulling Over Competitive Power Market

The Electricity Regulatory Authority of Vietnam (ERAV) under the Vietnamese Ministry of Industry and Trade has recently held a meeting to accomplish the design for a planned competitive power generation market.

 

The meeting is part of the project to deal with problems in designing a completed competitive power generation market funded by the he Public-Private Infrastructure Advisory Facility (PPIAF) through the World Bank.

 

Discussion focused on forming ceiling and floor power prices for price units by power plants, capacity-related payment mechanism, supportive service settlement, and other related issues.

 

The design for the hoped power market must satisfy goals by the market, attract local and foreign investors, create practical and reliable power prices, and encourage competition to enhance business efficiency.

 

According to the master plan for Vietnam’s electricity market development over the next 20 years approved by the government in February 2006, the market will develop in three phases. A competitive power generation market will be developed from 2005-2014.

 

Between 2015 and 2022, the market will operate under the wholesale business model. The last phase will feature a competitive retail market after 2022, with a pilot period from 2022-2024 and a fully-constituted competitive retail market be applied across the country after 2024. (The People)