Viet-Nam-Energy-Partnership-Group

Technical Working Group

i ENERGY SECTOR REFORM I

INTRODUCTION

Power sector reforms in Viet Nam have been mandated by the Electricity Law (first promulgated in 2004, amended in 2012) which set out the policy to develop the electricity market on the principle of transparent, equal and fair competition to increase efficiency in electricity supply activities. Since then power market reform has been seen as an essential attributor to the sector sustainable development.

Consistent with this policy, the Prime Minister approved the Power Market Development Roadmap (the Roadmap) in the PM Decision No. 26 in 2006, and revised it later in the PM Decision No. 63 in 2013, to outline the overall plan for gradually transforming Viet Nam’s electricity industry into one that has competitive wholesale and retail electricity markets. The Roadmap defines a transition between three major stages of reform: (1) Viet Nam Competitive Generation Market (VCGM); (2) Viet Nam Wholesale Electricity Market (VWEM), and (3) Viet Nam Retail Electricity Market (VREM). As the VCGM has been operating from July 2012, the current focus in Viet Nam at this time is to finalise the VWEM Rules based on the VWEM Detailed Design under MOIT Decision No. 8266 (dated 10 August 2015) and to establish a transition path from the current VCGM to the VWEM.

The Government of Viet Nam and Development Partners agreed that power sector reform is a pertinent theme for the VEPG dialogue with an understanding that continued international support of transparent, fair and predictable arrangements in electricity pricing, network access and dispatch will contribute to maintaining the sustainability of the energy supply sector.

PEOPLE

Chair and Co-chair

Chair: Mr. Pham Quang Huy

Deputy Director of Electricity Regulatory Authority of Vietnam
Ministry of Industry and Trade

Co-chair : Mr. Rahul Kitchlu

Energy Sector Coordinator
The World Bank in Vietnam

PRIORITY AREAS

  • Implementing a suitable energy market design
  • Enhancing capacities for market monitoring and system operation
  • Increasing investor and market stakeholder confidence in the market system
  • Developing a Direct Power Purchase Agreement (DPPA) mechanism as an option for RE investors
  • Leveraging resources for research and best practices