Perfectibility of the Competitive Power Bulk Market Design

Perfectibility of the Competitive Power Bulk Market Design - 

Deputy Prime Minister Hoang Trung Hai assigned Ministry of Industry and Trade (MoIT) to direct building and completing the design of the model of Competitive Power Bulk Market (CPBM), at the same time, with the suggestions on the restructuring of the power industry in accordance with the specific design of the Competitive Power Wholesale Market to submit to Prime Minister in June 2015.

Under the direction of the Deputy Prime Minister, MoIT continues to carry out the tasks to perfect Competitive Power Generation Market, accelerate preparing the conditions for forming the CPBM in Vietnam.

The CPBM in Vietnam must be established on the basis agreed of with the special elements of the Vietnam power system, such as: the domestic primary energy sources can not satisfy the energy demand, so, it should be necessary to import fuels with high prices for power generation in future; the domestic natural gas sources in several areas of the country have the specific constrains relating the common efficiency of the economy; there are the large multipurpose hydropower plants operating in national Power System; the power transmission system is too long and not strong enough; and information technology infrastructure of the power industry has not been yet modernized.

BOT power plants to participate in Power Market

Deputy Prime Minister asked MOIT to propose the mechanisms for BOT power plants to participate in Power Market with self-direct offering prices on the Market by effectively mobilizing all the resources of the National Power System; supplement the mechanisms for the power plants already signing BOT contracts and GGU to encourage them to participate in Market with the output part, generated over the commitment generation in BOT contracts and GGU; and add the mechanisms for the BOT power plants newly built and not yet signing the BOT contracts and GGU for a commitment to purchase their reasonable generation for encouraging them to develop project and participate in market just after putting into commercial operation.

Deputy Prime Minister also asked MoIT to supplement the options for the multi-purpose strategy hydropower plants to directly participate and self offer prices on the power market; analyze, compare the options of organizing and managing these plants for guaranteeing both the requirements of power market and public efficiency of power system; at the same time, propose the mechanisms for allowing investors of the new power plants to initiatively negotiate the agreements and sign the power purchase contracts between the power plants and EVN power corporations or/and the large customers participated in CPBM. Supplement international experiences on flexible concentrate price bidding power purchase contracts and concrete suggestions on organizing implementation of CPBM in Vietnam.

Implementing the conditions for CPBM

Deputy Prime Minister asked the MoIT to continue complete Competitive Power Generation Market in 2016 and develop a pilot of CPBM with a form of not true payment (Paper Market). Based on the analyses and assessments of the pilot stage to draw the experienced lessons for developing the CPBM in following stage.

Deputy Prime Minister asked the Electricity of Vietnam to organize implementing the prerequisites for CPBM with promptly completing the information and technology infrastructure system to meet the requirements for operation of Competitive Power Market; arrange the human resources, improve training works for the subsidiaries to carry out well their new functions and tasks in CPBM.

Leave your comment on this story