Responsibilities of generating units in participating in the electricity market in Vietnam from November 25, 2024

Responsibilities of generating units in participating in the electricity market 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 on operation of competitive wholesale electricity market in Vietnam.

Responsibilities of generating units in participating in the electricity market in Vietnam from November 25, 2024

To be specific: Article 4 of Circular 21/2024/TT-BCT stipulates the responsibilities of generating units in participating in the electricity market in Vietnam from November 25, 2024, as follows:

(1) Power plants with an electricity operation license in the field of power generation, with an installed capacity of over 30 MW connected to the national power system; hydropower plants with a capacity of 10 MW or more upon expiration of power purchase agreements based on avoided costs (including blocks); power plants using renewable energy other than hydropower with a capacity of 10 MW or more when agreements under state incentive and preferential pricing schemes expire; BOT power plants upon contract expiration and transfer to Vietnam; renewable energy power plants as specified in Decree 80/2024/ND-CP regulating direct power purchase mechanisms between renewable energy generating units and major electricity consumers via the national grid are required to participate in the electricity market.

Generation units owning the aforementioned power plants are responsible for completing registration procedures and directly participating in the electricity market, except for power plants specified in (3).

(2) Power plants with installed capacities up to 30 MW connected to a power grid with a voltage level from 110 kV or more (except in cases specified in point a, point c, point dd, point e, clause 3, Article 4 of Circular 21/2024/TT-BCT), power plants using renewable energy other than hydropower with installed capacities of 10 MW or more, power plants within industrial zones selling only part of their electricity output to the national grid have the right to choose to directly participate in the electricity market. In case of choosing to directly participate in the electricity market, the power plant is responsible for:

- Preparing the infrastructure as specified in (5);

- Completing and submitting the registration dossier to participate in the electricity market as regulated in clause 1, Article 7 of Circular 21/2024/TT-BCT;

- Complying with the requirements for power generation units participating in the electricity market as prescribed in this Circular and relevant legal documents.

(3) Power plants indirectly participating in the electricity market include:

- BOT power plants with active contracts;

- Power plants using renewable energy other than hydropower (except as specified in (2));

- Thermal power plants with commitments to maximize gas fuel use to ensure national interests and granted permission to indirectly participate in the electricity market by competent state agencies;

- Power plants within industrial zones selling only part or none of their electricity output to the national grid (except as specified in (2));

- Strategic multifunctional hydropower plants;

- Imported power sources;

- Power plants providing ancillary services that must operate and startup quickly as per annually published lists;

- Power plants operating under cost avoidance mechanisms with active contracts.

(4) Before November 1 of year N, the Power System and Market Operator is responsible for preparing and reporting to the Electricity Regulatory Authority the list of direct transaction generating units, indirect transaction generating units, and electricity purchasing units in the electricity market for year N+1 to be announced to market participants.

(5) Power generation units owning power plants directly participating in the electricity market are responsible for investing in and completing equipment systems to connect to the electricity market information system (including: Bidding system, dispatch order management system, electricity market payment support system, electricity market internal information network system), SCADA/EMS system, power metering system, and digital signatures that meet the operational requirements of the electricity market and other systems as specified.

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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