Market prices for directly-trading generating units in Vietnam from November 25, 2024

Market prices for directly-trading generating units in Vietnam from November 25, 2024 (Image from internet)

On October 10, 2024, the Minister of Industry and Trade of Vietnam issued Circular 21/2024/TT-BCT regulating the operation of the competitive wholesale electricity market.

Market prices for directly-trading generating units in Vietnam from November 25, 2024

According to Article 15 of Circular 21/2024/TT-BCT, market prices for directly-trading generating units in Vietnam are regulated as follows:

- Market electricity price applicable to electricity generation units:

- The unit operating the electricity system and electricity market is responsible for calculating after the operational time based on the method of non-binding scheduling;

- Not exceeding the electricity market price ceiling.

- Market capacity price applicable to electricity generation units:

- The unit operating the electricity system and electricity market is responsible for calculating during the planning of next year's operations and unchanged during the applied year;

- Calculated on the principle of ensuring that the best new power plant recovers enough variable and fixed costs.

- The entire electricity market price applicable to electricity generation units is calculated by summing up the following two components:

- The market electricity price applicable to the electricity generation units;

- The market capacity price applicable to the electricity generation units.

Nodes in electricity market in Vietnam from November 25, 2024

The Nodes in electricity market is regulated in Article 13 of Circular 21/2024/TT-BCT as follows:

- The Nodes in electricity market of each market participant member includes:

- For electricity generation units, their trading node is calculated at the electric delivery and receipt point of the power plants owned by the unit with the national electricity system;

- For wholesale electricity units, their trading node is calculated at:

-  The  delivery  and  receipt  point  between  the  transmission  grid  and  the  distribution  grid  of  the  electricity  purchasing  unit;

-  The  delivery  and  receipt  point  (if  any)  between  the  power  plants  participating  in  the  electricity  market  and  the  distribution  grid  of  the  electricity  purchasing  unit;

-  Delivery  and  receipt  points  on  the  distribution  grid  with  other  electricity  purchasing  units  participating  in  the  electricity  market.

- Electricity generation units and electricity purchasing units must register with the Electricity System and Market Operation Unit on their trading node during the process of registering to participate in the electricity market. In case of changes to the existing trading nodes or adding new trading nodes, the electricity generation units and electricity purchasing units are responsible for notifying this information to the Electricity System and Market Operation Unit.

- The Electricity System and Market Operation Unit is responsible for cooperating with related units in establishing, managing, and announcing the list of trading nodes corresponding to each market participant member.

- The Electricity System and Market Operation Unit is responsible for cooperating with relevant units in establishing and managing the list of measuring meters for each trading node to determine the electricity volume traded in the market at that node within each trading cycle.

Trading date, trading cycle, dispatching cycle, principles of market operation in Vietnam

Article 12 of Circular 21/2024/TT-BCT regulates as follows:

- The trading date is calculated from 00:00 to 24:00 of the calendar day.

- The trading cycle is 30 minutes, calculated from the beginning of every 30 minutes within the trading day. When the infrastructure conditions are met, the Electricity Regulatory Authority considers reducing the trading cycle to less than 30 minutes.

- The dispatching cycle is 30 minutes, calculated from the beginning of every 30 minutes within the trading day. When the infrastructure conditions are met, the Electricity Regulatory Authority considers reducing the dispatching cycle to less than 30 minutes, synchronized with the reduction of the trading cycle as specified in Section 2 of this Article.

- During participation in the electricity market, units are responsible for complying with the regulations, adhering to dispatching orders and instructions from the Electricity System and Market Operation Unit to ensure stable market operation, effective competition, and the safe, reliable operation of the electricity system.

More details can be found in Circular 21/2024/TT-BCT which comes into force in Vietnam from November 25, 2024.

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