What are Circular 21/2024/TT-BCT on the regulations for the operation of the competitive wholesale electricity market in Vietnam?
What are Circular 21/2024/TT-BCT on the regulations for the operation of the competitive wholesale electricity market in Vietnam?
On October 10, 2024, the Ministry of Industry and Trade of Vietnam issued Circular 21/2024/TT-BCT regulating the operation of the competitive wholesale electricity market in Vietnam (hereinafter referred to as the electricity market), including the following main provisions:
- Registration to participate in the electricity market
- Planning the operation of the electricity market
- Price bidding mechanism
- Load scheduling mechanism
- Measurement of electrical energy in the electricity market
- Determining market prices and payment calculations
- Information disclosure
- Supervision of electricity market operation
- Responsibilities of the entities participating in the electricity market
Circular 21/2024/TT-BCT takes effect from November 25, 2024, and applies to the following electricity market participants:
- Electricity wholesale units.
- Power generation units.
- Electricity system and market operation units (National System and Market Operation Company - NSMO).
- Electricity transmission units.
- Vietnam Electricity Group.
What are Circular 21/2024/TT-BCT on the regulations for the operation of the competitive wholesale electricity market in Vietnam? (Image from Internet)
Which power plants are indirectly participating in the electricity market in Vietnam?
Based on Clause 2, Article 4 of Circular 21/2024/TT-BCT stipulating the responsibility of power generation units to participate in the electricity market in Vietnam:
Article 4. Responsibilities of power generation units in the electricity market
[...]
3. The power plants indirectly participating in the electricity market include:
a) BOT power plants with effective contracts;
b) Power plants using renewable energy other than hydroelectric (except as stipulated in clause 2 of this Article);
c) Thermal power plants required to use maximum natural gas resources to ensure national benefits, indirectly participating in the electricity market with permission from a competent state agency;
d) Power plants within industrial zones selling only a portion or not selling their electricity output to the national grid (except as stipulated in clause 2 of this Article);
dd) Multi-purpose strategic hydroelectric plants;
e) Imported power sources;
g) Power plants providing auxiliary services required to generate and start quickly according to the annually published list;
h) Power plants operating under avoidable cost mechanisms with valid contracts.
[...]
Thus, the power plants indirectly participating in the electricity market in Vietnam include:
- BOT power plants with effective contracts
- Power plants using renewable energy other than hydroelectric
- Thermal power plants with constraints to use maximum natural gas resources to ensure national benefits and are allowed by competent state agencies to indirectly participate in the electricity market
- Power plants within industrial zones selling only a portion or not selling their electricity output to the national grid
- Multi-purpose strategic hydroelectric plants
- Imported power sources
- Power plants providing auxiliary services required to generate and start quickly according to the annually published list
- Power plants operating under avoidable cost mechanisms with valid contracts
Note: Except for power plants with an installed capacity up to 30 MW connected to a grid with a voltage level from 110 kV or more, power plants using renewable energy other than hydroelectric with an installed capacity from 10 MW or more, power plants within industrial zones selling only a portion of their electricity output to the national grid are entitled to directly participate in the electricity market.
What are the main provisions for transactions in the electricity market in Vietnam?
Based on Article 21 of Electricity Law 2004 amended by point b, clause 1, Article 2 of Amended Electricity Law 2012 stipulating the operation and transaction management in the electricity market:
Article 21. Operation and transaction management in the electricity market
1. The main provisions for transaction activity in the electricity market include:
a) Rights and obligations of entities participating in the electricity market corresponding to the development level of the electricity market;
b) Technical characteristics of electrical generation, transmission, and distribution equipment;
c) National electricity system dispatch in the electricity market;
d) Incident handling procedure;
dd) Spot electricity trading in the electricity market;
e) Pricing and market price determination;
[...]
Thus, the main provisions for transactions in the electricity market include:
- Rights and obligations of entities participating in the electricity market corresponding to the development level of the electricity market
- Technical characteristics of electrical generation, transmission, and distribution equipment
- National electricity system dispatch in the electricity market
- Incident handling procedure
- Spot electricity trading in the electricity market
- Pricing and market price determination
- Invoicing and payment among entities trading electricity in the electricity market and auxiliary service providers
- Provision and pricing of auxiliary services
- Handling violations and resolving disputes, complaints about electricity trading and auxiliary services in the electricity market
- Provision and disclosure of information related to the operation and transaction management in the electricity market
