Mô hình thị trường điện và vấn đề cải cách thị trường điện việt nam

ERAV
Electricity Regulatory
Authority of Vietnam

POWER MARKET DEVELOPMENTS
IN VIETNAM

18 October, 2010


ERAV
Electricity Regulatory
Authority of Vietnam

Contents
Section 1 - Vietnam power sector overview
Section 2 - Power sector development strategies
Section 3: Competitiveness and affordability

2


Section 1: Power sector overview

ERAV
Electricity Regulatory
Authority of Vietnam

1.1 Existing National Grid

As at 2009

1. Generation Capacity: 18,268 MW
Generation:
84,750 GWh
Consumption:
74,761 GWh
• Hydro:
35.8% 6,548 MW
• Coal and oil thermal:
20.9% 3,812 MW
• Gas turbine (CCGT):
36.9% 6,747 MW
• Diesel and small hydro: 2.6%
461 MW
• Import from China:
3.8%
700 MW
2.
•
•
•
•
•

3

Total length of lines:
500 kV:
3,410 km
220 kV:
5,602 km

110 kV:
12,448 km
6-35 kV: 135,371 km
LV:
240,424 km

8,814 MVA
15,440 MVA
21,314 MVA
39,804 MVA


Section 1: Power sector overview

ERAV

1.2 Supply and Demand

Electricity Regulatory
Authority of Vietnam

Capacity, generation and consumption from 1998-2009
35,000
90000
84750
30,000

80000

74197

74761

66612

70000

25,000

Import from China
65880

58781

Diesel and small
hydro

60000
51854
46226

MW

40590

15,000

44860.1

35715

21526

23484

30000

Hydro

30228
25752
20000

22397
5,000

17725

19592
10000

0

0
1998

1999

2000

2001

2002

2003

2004

2005

2006

Year

4

Oil
Coal

34835

26457
10,000

40000

39596.2

30423

Gas turbine

50000

51295.5

GWh

20,000

58438.2

Consumption growth rate: 14%/year
Installed capacity growth rate: 12%/year

2007

2008

2009

Electricity sale,
GWh

Generated, GWh


Section 1: Power sector overview

ERAV
Electricity Regulatory

Authority of Vietnam

1.3 Power Development Plan (Master Plan 6)
Total installed capacity planned to 2020
140000
120000

100000

MW
Import
Small hydro and renewable energy
Gas turbine and oil
Coal
Hydro and pump storage
Pmax

80000

60000
40000

20000
0
06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20

- Growth rate: 15% (based case), Total capacity/Peak demand:
2010 : 21,400 / 16,000 (MW).
2015 : 55,500 / 29,500 (MW).

5

2020 : 107,300 / 54,400 (MW).
- Additional generation: 40,000 MW in 2009-2015; 52,000 MW in 2016- 2020


Section 1: Power sector overview

ERAV
Electricity Regulatory
Authority of Vietnam

1.4 Industry Structure
Current power sector structure: Vertically integrated
GENERATION

TRANSMISSION, SCHEDULING
AND DISPATCHING

BOTs
BOTs
and
andIPPs
IPPs
(32%)
(32%)

Power
Power
plants

plants
under
underEVN
EVN
(68%)
(68%)

National
National
Load
Load
Dispatch
Dispatch
Center
Center
(NLDC)
(NLDC)

National
National
Power
Power
Transmiss
Transmiss
ion
ion
Corporati
Corporati
on (NPT)
on (NPT)

DISTRIBUTION AND
RETAIL

Electric
Electric
Power
Power
Trading
Trading
Company
Company
(EPTC)
(EPTC)

Power
Power
Compani
Compani
es
es
(5(5PCs)
PCs)

EVN
EVN is holding company for:

• Generation: equitized (EVN holds majority) or subsidiary power

6

plants account for 68% of installed capacity
• Scheduling and dispatching: dependent accounting unit
• Transmission: dependent accounting unit
• Distribution: 5 independent accounting companies


Section 1: Power sector overview

ERAV
Electricity Regulatory
Authority of Vietnam

1.5 Challenges
• Generation not keeping up with rapidly growing demand
(~14% per annual).
• Reasons:
− Required investment in power sector, especially for generation, is far
beyond EVN financial resource.
− Electricity pricing is not transparent and not reflecting costs; low prices
unattractive for investors.
− The current vertically integrated structure cannot ensure generation
investors confidence in a fair and efficient trading environment, fair and
non discriminatory access to the grid, dispatch.
− Lack of clear mechanism for PPAs leads to delays and inefficiencies in
negotiations and pricing, and lack of clear mechanisms for other
generation investors PPAs to sell to EVN.

7

ERAV
Electricity Regulatory
Authority of Vietnam

Contents
Section 1 - Vietnam power sector overview
Section 2 - Power sector development strategies
Section 3: Competitiveness and affordability

8


Section 2 - Sector development strategies

ERAV
Electricity Regulatory
Authority of Vietnam

2.1 Legal Framework
1. Electricity Law (2005) stipulates:
− Diversification in power sector investments, allowing participation of all
economic sectors.
− Introduction of power market, step-by-step development of competitive
generation, wholesale competitive, and retail competitive markets.

2. Power sector administration:

9

− Ministry of Industry and Trade (MOIT) is the sector’s policy maker.
− Electricity Regulatory Authority of Vietnam (ERAV): Established in
10/2005 as an entity under MOIT, to conduct:
Development and regulation of power markets
Economic regulation (electricity pricing)
Monitoring supply/demand balance to promote security, efficiency
and conservation
Licensing and Dispute resolution
ERAV is the first and only infrastructure dedicated economic
regulator in Vietnam


Section 2 - Sector development strategies

ERAV
Electricity Regulatory
Authority of Vietnam

2.2 Power Market Development Roadmap

Competitive Generation
Market
(VCGM)
2014

2011

Pilot
Operation

Electricity Wholesale Market

Full
Operation

2022

2016

Pilot
Operation

Electricity Retail Market

Full
Operation

Pilot
Operation

2024

Full
Operation

The preparation for the Competitive Power Market (CGM) is now in
progress and conducted by ERAV


Section 2 - Sector development strategies

ERAV
Electricity Regulatory
Authority of Vietnam

2.3 VCGM design
• A cost-based pool (CBP) design has been selected as providing the best
balance between the objectives of:
o attracting investments
o assuring power supplies and retail tariff stability
o increasing competition and transparency in the power market
o the CBP design draws on the experience of EVN’s pilot power market
• A single buyer (part of EVN) purchases all generation

• The CBP comprises a gross pool, with hourly clearing and day-ahead

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bidding. Major features are:
o thermal generators are subject to a bid cap equal to variable costs
o hydro generators are subject to a bid cap in a range around their water
value (calculated by the system and market operator, SMO)
o a market-clearing price (system marginal price, SMP) is set on an ex-post
basis using an unconstrained schedule
o contracts for differences are used, initially covering up to 90% of
expected output, to stabilise prices for generators and customers


Section 2 - Sector development strategies

ERAV
Electricity Regulatory
Authority of Vietnam

2.4 VCGM structure


Section 2 - Sector development strategies

ERAV
Electricity Regulatory
Authority of Vietnam

2.5 VCGM participants
Customers

NON-PARTICIPANTS
SPPs
(<30 MW)

PCs

PARTICIPANTS

Exports

SERVICE PROVIDERS

MDMSP

SINGLE BUYER
(Electricity Power Trading
Company)

TNO

Imports

SMO
BOTs

FSR/CSR/
RMR

SMHPs

INDIRECT TRADING GENERATORS

HPPs

Non-BOT
TPPs

DIRECT TRADING GENERATORS


Section 2 - Sector development strategies

ERAV
Electricity Regulatory

Authority of Vietnam

2.6 Investment and cost recovery in VCGM

• A capacity payment is made to all generators included
in the schedule plus a margin, in each daylight hour
o the payment is calculated to cover the fixed costs of a new
thermal generator that are not recovered from the energy
market

• Vietnam retains a generation investment master plan,
which determine sites, size and fuel for new generators
o ERAV is responsible for advising on updates to the master
plan and for approving ranges for generation prices to be
negotiated by the single buyer

• Foreign-invested generators are offered long-term
PPAs covering all output. Existing PPAs are not
affected by the CGM


Section 2 - Sector development strategies

ERAV
Electricity Regulatory
Authority of Vietnam

2.7 VCGM implementation plan

• Reorganization in generation: Power plants will be regrouped in

to a number of independent generation companies and none of them
owning more than 25% of total generation capacity.

• Before moving to the Full VCGM, a Pilot VCGM will be
•

operated
The Pilot VCGM provides a low-risk means to
o test the market mechanisms, market rules and procedures
o identify and provide remedies to deficiencies
o test the market infrastructure and market systems prior to
implementing the full market
o create an environment for members to learn, practise and develop
their skills for participation in the competitive market

• The Pilot VCGM is expected to start by 2011 Q2, with the Full
15

VCGM starting late-2011


ERAV
Electricity Regulatory
Authority of Vietnam

Contents
Section 1 - Vietnam power sector overview
Section 2 - Power sector development strategies
Section 3: Competitiveness and affordability

16


Section 3: Competitiveness and affordability

ERAV
Electricity Regulatory
Authority of Vietnam

3.1 Tariff Reforms
•

The main elements of Vietnam’s tariff policy are:

-

•

Major tariff reforms were undertaken in 2009:

17

a uniform national residential tariff, with PCs paying different
bulk supply tariffs (BSTs) according to their costs of service
maintaining affordability of tariffs for smaller residential
customers through cross-subsidies
increase in average tariff levels of 8.92% (to 5.5 USc/kWh)
harmonisation of residential tariffs for customers served by
PCs and by local distribution utilities (LDUs) in rural areas
revisions to the rising block structure for residential tariffs with

the first block (up to 50 kWh) being charged a tariff set at 6065% of the average rate
gradual elimination of cross-subsidies over 5-6 years, by
increasing industrial and commercial tariffs more slowly than
residential tariffs
tariffs are revised annually reflecting changes in the cost
chain elements. The proposal for 2010 has been submitted to
the Government for review and approval


Section 3: Competitiveness and affordability

ERAV
Electricity Regulatory
Authority of Vietnam

3.2 Market-Based Competitive Pricing

• VCGM aims to increase competitiveness and
•

transparency in generation pricing
With the introduction of the VCGM, further tariff
reforms are planned to increase competitiveness
- industrial and commercial tariffs will become a cap, with PCs

-

-

being able to negotiate lower tariffs

the current cross-subsidy for households in the first
consumption block will be converted into a rebate on electricity
bills
the national uniform tariff may be limited to residential
customers only. It will continue to be applied through a
differential Bulk Supply Tariff charged from the single buyer to
PCs
the automatic indexation of tariffs to changing costs is being
considered


ERAV
Electricity Regulatory
Authority of Vietnam

THANK YOU FOR
YOUR ATTENTION !!!

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