Vietnam has been increasingly needing energy for industry
development and consumption and therefore investment in building
plants are encouraged by governments in all forms, especially with sources
from Public Private Partnership.
The nuclear energy has not been approved by
Vietnam National Assembly in 2016. Vietnam has now more depending on
up-coming thermal coal power plant construction projects when the sustainable
energy projects i.e. wind, solar are slowly initiated.
For most of the significant projects, the developers requires
the foreign EPC contractors to provide
equipment, engineering and constructions whom requires construction licenses to operation in Vietnam.
They also keep an eye on on the changes in the law in electricity
and Vietnam development of energy sector to follow opportunities.
With aim to grow the
energy sector to meeting growing demands and publicly announce the plan to the
interested parties, Vietnam government has now restructuring the
power sector aiming to achieve the conversion of the power sector
under the market mechanism in order to enhance business efficiency, enhance the
publicity, transparency, equal competition in terms of international
integration, ensuring the development of sustainable electricity systems,
market development-oriented retail electricity in Vietnam according to the
market mechanisms under the regulation of Government.
Restructure
Electricity Sector 2016 – 2020
The period from 2016 to
2018
Privatize the power
generation corporation of Vietnam electricity Group (EVN), Vietnam National Oil
and Gas Group (PVN), Vietnam national coal – mineral industries holding
corporation limited (Vinacomin). Vietnam Power Generation Corporation to be
remained in the groups managed by EVN and the group hold at least 51% of the
shares.
To encourage the plant
using the renewable energy to engage in the wholesale electricity market.
Orienting the National
Load Dispatch Center to become one member limited liability company with
independent profit and loss center to manage the system, the electricity market
and metering activities.
The period from 2019 to
2020
Reduce the State capital
in the power generation corporation, separate the Vietnam Power Generation
Corporation from Vietnam Electricity Group, and guarantee the State capital
ratio in the power generation companies.
Allow the BOT power
plant, the large power plant having important meaning to involve in the
wholesale electricity market. Ensure a fair, equality environment for
investors.
Separate the cost of
distribution and retailing of electricity to operate the retail electricity
market.
Before the competitive
wholesale electricity market officially implemented, complete the conversion of
the National Load Dispatch Center into one member limited liability company.
Restructure
Electricity Sector 2021 – 2025
Creating an environment
for fair competition in the electricity retailing, separate the cost of
distribution and retailing.
Privatize the power
generation corporation, and retail activity ensuring the state’s capital ratio
but not to private each company, or distribution activity.
Ensure the independence
of the legal status, personnel, financial and interests between the power
seller, and power buyer.
The Expected Changes of
the Law on Electricity
The competent authority will revise the Vietnam Electricity Law
and the related legal documents to propose the necessary amendments, to fit
with the open market direction for the electricity industry in Vietnam, in
order to avoid the legal entanglements for domestic as well as foreign
investors.
Allows the plant using the renewable energy to have a options for preferential price mechanism or engage in the competitive wholesale electricity market.
Allows the plant using the renewable energy to have a options for preferential price mechanism or engage in the competitive wholesale electricity market.
Provide guidance on the
cost separation on distribution and retailing of electricity, renew the
mechanism of the retail price of electricity suitable for the market mechanisms
under the state’s management.
Build a road map to
transform the national load dispatch center to become one member limited
liability company to complete the tasks independently and take responsibility.
The laws on electricity will be changed to attract
investment of the private sector, boosting the industrial development of the
country, which is always hunger for power to develop. The changes of laws
will be monitored by ANT Lawyers Energy and Project Department in
Hanoi, Da Nang and Ho Chi Minh City to provide clients with updates.
ANT Lawyers has law
offices in Hanoi, Ho Chi Minh, and Da Nang City. For advice or service request, please
contact us via email ant@antlawyers.vn, or call +84 8 3520 2779. To learn more about us, visit www.antlawyers.vn.
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