Electricity market lacks IT systems

A competitive electricity market needs a co-ordinated system of information technology in order to operate reliably and transparently, said Deputy Minister of Industry and Trade Hoang Quoc Vuong at a seminar held on Thursday entitled IT Solutions for a Competitive Power Market in 2011.

The domestic electricity market remained new and had many limitations, especially IT infrastructure and a lack of competitiveness, said Vuong, noting that State-owned utility giant Electricity of Viet Nam (EVN) currently controlled around 60 per cent of the nation’s total electrical capacity.

Power plants seeking to sell electricity to the national system needed tools to compute reasonable offer prices based on a competitive market, Vuong added.

Viet Nam PRP Corporation general director Tran Anh Thai said the goal of a competitive electricity market was to gain optimal efficiency in power supply in the context of a market economy, thereby creating correct pricing signals for the development of power plants.

“Those would also create an equal playing field, cut power generation costs, and ensure a balance between demand and supply,” Thai said.

The establishment of a common information model (CIM) would also comply with the terms of Ministry of Industry and Trade Directive No 6941, which requires IT insfastructure for the power generation market that includes 15 subsystems, with each linked to the other via a direct connection to ensure proper operation of units joining the market. The Centre of National Power Grid Control would be responsible for managing, connecting and operating the 15 subsystems.

Under the principles of the competitive power market, all power plants with capacities over 30MW would be obliged to participate in the market, except for current facilities built under Built-Operate-Transfer (BOT) contracts and hydroelectric facilities.

Thursday’s seminar was organised by the Ministry of Industry and Trade and Viet Nam Power Resource Partners Corporation. — VNS

Tags: Vietnam electricity, Vietnam electricity market, Vietnam energy