Power market’s low competition
Power market’s low competition
Vietnam’s competitive power generation market has attracted less than expected registrants after operating for over a year.
A recent Ministry of Industry and Trade (MoIT) report done by the state body’s Electricity Regulatory Authority of Vietnam showed that after a year since its launch, the competitive power generation market (VCGM) had only attracted 33 power plants with a combined capacity of 9.523 megawatts. These plants directly offer their prices on the energy market to be sold to Electricity of Vietnam (EVN) out of a total 89 plants in the country that produce 25,565MW.
Fifty-six power plants, 62.7 per cent of the national total (not including small-scale hydropower), are not yet taking part in the VCGM. They cited reasons such as not yet completing the necessary technology infrastructure.
Unhappy with this result, Deputy Prime Minister Hoang Trung Hai asked the MoIT to boost VCGM’s competitiveness by further increasing the number of power plants participating in the market.
On another note, MoIT also urged EVN, Vietnam Oil and Gas Group (PetroVietnam), and state mining conglomerate Vinacomin to push up their equitisation plans for their respective power generation corporations (Gencos).
Equitising the Gencos was reportedly a major part of these groups’ restructuring plans.
EVN’s Gencos are mulling forming a specific body to work on setting power price on offer in VCGM, but at current time power plants are still doing so individually.
VCGM statistics show that from July 2012, its start, to June this year, a total of 50.87 billion kWh were transacted through the energy market at an approximate value of $2.4 billion.
According to deputy general director Trinh Hong Khanh of Vinacomin’s Genco, its four thermal power plants, Na Duong, Cao Ngan, Cam Pha, and Son Dong, are already operating in the power market. Its Mao Khe plant, however, inaugurated in April, has yet to join as it is still fulfilling the necessary procedures.
Khanh commented that joining the VCGM market was risky for thermal plants, as unlike hydropower which had copious free resources during the rainy season, thermal power had to rely on and adapt to the prices of input product (coal).
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