Who manages the electricity market in Vietnam?

The Ministry of Industry and Transport is the government body in charge of managing Vietnam’s electricity market and supply. It does this through the wholly state-owned power company Electricity Vietnam commonly known as EVN. EVN generates some power, but also buys power from wholesalers, and sells electricity to consumers.

How has electricity generation evolved in Vietnam?

Evolution of electricity generation in Vietnam. Source: IEA Vietnam’s move toward a competitive power system took a big step forward with the launch of its Wholesale Electricity Market (VWEM) in 2019. In this market, state and private generators sell electricity through a centrally coordinated system.

How does the power market work in Vietnam?

Vietnam’s power market operates on a 30-minute trading system, with prices updated every half hour. This Full Market Price (FMP) reflects the real-time cost of power and is used to settle payments in the wholesale market. The FMP includes: System Marginal Price (SMP) – a dynamic price based on supply and demand.

Does Vietnam have a competitive power system?

Vietnam’s move toward a competitive power system took a big step forward with the launch of its Wholesale Electricity Market (VWEM) in 2019. In this market, state and private generators sell electricity through a centrally coordinated system. Prices are based on real-time supply and demand, bringing more transparency and efficiency to the sector.

Can businesses buy power from power generators in Vietnam?

Vietnam issued a decree on Direct Power Purchase Agreements on July 3, 2024, clearing the way for businesses to buy power directly from power generators. The decree was a long time coming and has been touted as a critical component to developing Vietnam’s electricity network.

How does EVN manage the electricity market in Vietnam?

Understanding these layered dynamics is essential for cost forecasting, risk assessment, and long-term investment planning. The Ministry of Industry and Transport is the government body in charge of managing Vietnam’s electricity market and supply. It does this through the wholly state-owned power company Electricity Vietnam commonly known as EVN.