With the power sector scouring for annual capital worth US$3.83 billion, Vietnam is striving to attract investment from other independent power producers (IPP) to create a more competitive electricity market.
Electricity of Vietnam (EVN) said investment from other IPPs would be vital as the monopoly state-owned power supplier is capable of contributing only 50% of the needed capital.
In such a context, the power generation sector is an attractive field as it has enjoyed bountiful investment from a range of IPPs.
Vietnam Oil and Gas Group (PetroVietnam), one of the nation’s biggest IPPs unveiled plans to commission two power generation plants, namely Ca Mau Power Plant 1 and Ca Mau Power Plant 2 in March 2007 and early 2008, respectively.
Besides, PetroVietnam also dispatched shop-floor workers to refreshment courses held at power plants already in operation like Phu My and Ba Ria.
By the end of 2006, Vietnam recorded 17 independent electricity projects with 210 MW reportedly generated in the national power grid.
Other IPP major generation projects are also on the cards with PetroVietnam set for another 1,950MW project and the Vietnam Coal and Mineral Group planning a 1,400 MW project.
EVN predicted that besides the two aforesaid mega projects, the power capacity of other IPP-invested projects should amount to 3,150MW in five years’ time.
With the recent establishment of the Electricity Regulatory Board of Vietnam, tasked with supervising power-selling transactions as well as negotiating electricity prices, Vietnam is set for a competitive power market where customers are offered the most reasonable prices.
But before the competitive market is fully shaped by 2022, the government would continue to control and determine the power prices, the Vietnam Ministry of Industry said.