Many plants to join power wholesale market
Many plants to join power wholesale market
The competitive power wholesale market will be kicked off early next year following an approved road map and power plants to join the market are forecast to outnumber those on the existing power generation market.
The Vietnamese power market is at three competitive levels – competitive power generation, competitive wholesale and competitive retail.
Until now, the competitive power generation market has been in place for three years with the participation of more than half of the existing power plants, except for BOT stations. Plants offering low prices and meeting requirements can sell power.
According to the Ministry of Industry and Trade, compared to the power generation market, there will be more units eligible to join the competitive wholesale market set to start rolling next year.
Most power production plants, including corporations under Vietnam Electricity Group (EVN), will offer their selling prices on the market. Big, qualified customers can join the wholesale market and freely select partners to sign power purchase deals.
In the long run, when the power market achieves higher levels of development, the number of customers able to pick power suppliers will increase. Finances in the power industry are expected to be improved, a reasonable power price will be set based on supply and demand, the quality of power supply can be improved. The power use will be more efficient and customers can enjoy other benefits.
However, the Ministry of Industry and Trade still has to prepare conditions like a mechanism for bilateral deals to reduce risks of price volatility, a pricing mechanism for multi-purpose and BOT plants and a service mechanism on the wholesale market as power transmission companies are still under the management of EVN.
