256 N. H. NGUYEN ET AL.
Electricity Market Liberalization
In 2006, Decision No. 26/2006/QD-TTg was issued to regulate and
layout the roadmap toward creating a competitive electricity market in
three phases (Fig. 11.2).
Phase 1—Competitive Generation Market: Establish a Market Operator and single buyer under the national electric company, Electricity
of Vietnam (EVN). On that basis, the competitive electricity generation market has been built and operated, implementing the spot market
mechanism so that all generators can participate in the market.
Phase 2—Competitive Wholesale Market: At this level, the demand
side will be expanded with an organized power market. The model of
“single buyer” is replaced by an agreement whereby consumers can negotiate to purchase electricity directly from the generation entities regardless
of the single buyer. From 2015 to 2016, a pilot competitive wholesale market was implemented. From 2017 to 2021, a fully competitive
wholesale market is being implemented.
Phase 3—Competitive Retail Market: At this level, the electricity
distribution company will be separated by their functions of grid management and retail from those of electricity generation (unbundling). End
users who are served by distribution companies can then freely choose
their suppliers (retailers). From 2023 onward, the fully competitive retail
market will be implemented.
Competition in electricity generation has been prepared since 2009,
and officially operated since 2012 under the name of “Competitive
Generation Market” in Vietnam. The competitive generation market was
open for power investors outside EVN, thereby diversifying the ownership of electricity production. Participants in the competitive generation
market include all power plants with installed capacity of more than
30 MW, and which are directly connected to the national grid (except for
BOT power plants, wind power plants, geothermal power plants). Since
2015, hydropower plants with a capacity of up to 30 MW, connected to a
grid of 110 kV or higher, and meeting all requirements on infrastructure,
are entitled to participate in the electricity market.
The Vietnam competitive wholesale market was designed and commissioned from 2016 and planned to officially begin operations by the
end of 2017, according to the Ministry of Industry and Trade’s Decision No. 8266/QD-BCT of 2015, which approved a detailed design for
Electricity Market Liberalization
In 2006, Decision No. 26/2006/QD-TTg was issued to regulate and
layout the roadmap toward creating a competitive electricity market in
three phases (Fig. 11.2).
Phase 1—Competitive Generation Market: Establish a Market Operator and single buyer under the national electric company, Electricity
of Vietnam (EVN). On that basis, the competitive electricity generation market has been built and operated, implementing the spot market
mechanism so that all generators can participate in the market.
Phase 2—Competitive Wholesale Market: At this level, the demand
side will be expanded with an organized power market. The model of
“single buyer” is replaced by an agreement whereby consumers can negotiate to purchase electricity directly from the generation entities regardless
of the single buyer. From 2015 to 2016, a pilot competitive wholesale market was implemented. From 2017 to 2021, a fully competitive
wholesale market is being implemented.
Phase 3—Competitive Retail Market: At this level, the electricity
distribution company will be separated by their functions of grid management and retail from those of electricity generation (unbundling). End
users who are served by distribution companies can then freely choose
their suppliers (retailers). From 2023 onward, the fully competitive retail
market will be implemented.
Competition in electricity generation has been prepared since 2009,
and officially operated since 2012 under the name of “Competitive
Generation Market” in Vietnam. The competitive generation market was
open for power investors outside EVN, thereby diversifying the ownership of electricity production. Participants in the competitive generation
market include all power plants with installed capacity of more than
30 MW, and which are directly connected to the national grid (except for
BOT power plants, wind power plants, geothermal power plants). Since
2015, hydropower plants with a capacity of up to 30 MW, connected to a
grid of 110 kV or higher, and meeting all requirements on infrastructure,
are entitled to participate in the electricity market.
The Vietnam competitive wholesale market was designed and commissioned from 2016 and planned to officially begin operations by the
end of 2017, according to the Ministry of Industry and Trade’s Decision No. 8266/QD-BCT of 2015, which approved a detailed design for