Power players yet to do their bit

Industry chiefs have voiced concerns months after a competitive power market trial period kicked-off.

Forty-five out of 69 power plants operate in Vietnam’s competitive power generation market (VCGM), but some plants failed to sell power to the market due to costly power prices, said the Ministry of Industry and Trade’s Electricity Regulatory Authority of Vietnam (ERAV).

According to ERAV assessments, low-cost hydropower plants contributed a big share to the market during the flood season, setting market rates at reasonable levels.

The average price on offer in the market was VND538 and VND723 per kWh in July and August, respectively. The figure stood at VND735 in September and surged to VND817 per kWh in peak hours.

Reality shows that scores of multi-purpose hydropower plants joined the national power system, which has a core function to irrigate agricultural production. As a result, it is hard for these plants to maintain the registered contract output, badly influencing the market.

More than two months after the VCGM test kicked-off, the power ceiling price in the market lifted from VND900 to VND1,400 per kWh, around VND200 per kWh more than current averages.

Pha Lai Thermopower Plant Joint Stock Company’s general director Nguyen Khac Son said higher ceiling level was just momentary and not be a major cause for concern.

“Power generators’ greatest concern is unstable power prices shaking revenue figures which will not be higher than before we joined the VCGM,” Son said.

The competitive power market will be developed in three phases, a competitive power generation market from 2005-2014, a competitive wholesale market from 2015 to 2022 and a competitive retail market after 2022. – VIR

Tags: Vietnam energy, Vietnam energy industry, Vietnam Energy sector