THE MINISTRY OF INDUSTRY AND TRADE
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|
THE SOCIALIST REPUBLIC OF VIETNAM
Independence - Freedom - Happiness
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No. 12751/QD-BCT
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Hanoi, November 23, 2015
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DECISION
ON APPROVAL FOR PLAN FOR OPERATION
OF PILOT COMPETITIVE WHOLESALE ELECTRICITY MARKET IN 2016
THE MINISTER OF INDUSTRY AND TRADE
Pursuant
to the Law on Electricity dated December 03, 2004 and Law on amendments to some
articles of the Law on Electricity dated November 20, 2012;
Pursuant
to the Government’s Decree No. 95/2012/ND-CP dated November 12, 2012 defining
functions, tasks, entitlements and organizational structure of the Ministry of
Industry and Trade;
Pursuant
to the Decision No. 63/2013/QD-TTg dated November 08, 2013 of the Prime
Minister on roadmap, conditions and structure of electricity sector for
formation and development of different levels of electricity market in Vietnam;
Pursuant
to the Decision No. 8266/QD-BCT dated August 10, 2015 of the Minister of
Industry and Trade on approval for detailed design of Vietnam's competitive
wholesale electricity market;
At the
request of the Director of the Electricity Regulatory Authority,
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Article 1. The plan for operation of pilot competitive
wholesale electricity market in 2016 is approved. To be specific:
1.
Targets
a) Pilot
the first step of electricity wholesale competition where multiple sellers and
many buyers take part in. Generators, power corporations, National Load
Dispatch Centre, Electric Power Trading Company and relevant units shall carry
out pilot transactions in the competitive wholesale electricity market;
b) Pilot
distribution of power purchase agreements signed between generators and EVN to
05 power corporations. Pilot assignment given to power corporations to manage
power purchase agreements with generators.
2. Rules
a)
Operate electricity market and make real payment to generators as prescribed in
the Circular No. 30/2014/TT-BCT dated October 02, 2014 of the Minister of
Industry and Trade on operation of competitive electricity generation market,
Circular on amendments to some articles of the Circular No. 30/2014/TT-BCT on
operation of competitive electricity generation market and Circular No.
56/2014/TT-BCT dated December 19, 2014 of the Ministry of Industry and Trade on
methods for determining electricity generation costs and procedures for
inspecting power purchase agreements and other relevant documents promulgated
by the Ministry of Industry and Trade;
b)
Simulate the following tasks on paper: (i) Distribute power purchase agreements
signed between generators and EVN to 05 power corporations; (ii) Consider
signing vesting agreements between 05 power corporations and generators; (iii)
Consider addressing issues that arise and make payment between 05 power
corporations and generators in accordance with regulations on electricity
market.
3. Pilot
competitive wholesale electricity market participants
a)
Affiliates participating in the competitive electricity generation market;
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4.
Mechanism for operation of pilot competitive wholesale electricity market in
2016
a)
Consider distributing the signed power purchase agreements between generators
and EVN to power corporations in 02 phases. To be specific:
- Phase 1
(from January 01 to the end of June 30, 2016): 01 agreement with a hydropower
plant, 01 agreement with coal-fired power plants and 01 agreement with
gas-fired power plants provided in the Appendix 2 hereof will be distributed to
power corporations. During operation of pilot competitive wholesale electricity
market in 201, according to actual conditions, the Electricity Regulatory
Authority of Vietnam (hereinafter referred to as “ERAV”) will consider
increasing the number of agreements distributed to power corporations;
- Phase 2
(from July 01 to the end of December 31, 2016): consider and pilot methods of
distributing agreements as prescribed in the Decision No. 8266/QD-BCT dated
August 10, 2015 of the Minister of Industry and Trade on approval for detailed
design of Vietnam's competitive wholesale electricity market.
b)
Forecast load: power corporations shall forecast load to serve payment and
preparation of the contractual power output (Qc) chart (annual Qc, monthly Qc
and hourly Qc) according to Phase 2;
c)
Collect and manage metering data within the boundary between transmission grid
and distribution grid:
- The
National Load Dispatch Centre shall remotely collect, aggregate and store
metering data measuring within the boundary between transmission grid and
distribution grid, between power corporations and use such data for making
payment in the spot electricity market;
- The
National Power Transmission Corporation and 05 power corporations shall collect
on-site metering data under their management and provide it for the National
Load Dispatch Centre for standby, comparison and cross-checking purposes.
d) Make
payment in the spot electricity market: the National Load Dispatch Centre shall
make payment in the spot electricity market and publish the list of daily
payment by generators and power corporations; compare and confirm the list
through the electricity market website.
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Article 2. Plan for organizing implementation
1. Assign
ERAV to:
a) supervise,
instruct and encourage EVN, National Load Dispatch Centre, Electric Power
Trading Company, power corporations, generators and relevant units to complete
necessary preparations for operation of pilot competitive wholesale electricity
market;
b) take
charge of designing and completing the agreement distribution and electricity
market simulator before July 01, 2016;
c) take
charge and direct EVN, National Load Dispatch Centre, Electric Power Trading
Company, generators and power corporations to complete plans for piloting
distribution of agreement and contractual power output Qc in the fourth quarter
of 2016 between generators and power corporations;
d)
supervise and submit periodic reports on operation of competitive wholesale
electricity market to the Ministry of Industry and Trade, carry out a review of
operation of competitive wholesale electricity market in 2016, which serves as
a basis for making the next steps.
2. Assign
EVN to:
a) direct
and encourage its affiliates to complete the following tasks before December
15, 2015:
- Direct
relevant units to help power corporations in installing payment assistance
software; direct power corporations to complete transmission line in accordance
with regulations to establish a connection to the electricity market intranet
portal, thereby serving provision and exchange of information in the
electricity market and providing assistance in payment.
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- Direct
relevant units to install appropriate hardware and software to satisfy
requirements for participation in pilot wholesale electricity market in 2016;
- Direct
the Electric Power Trading Company to assign power purchase agreements with
power plants provided in Appendix 2 hereof to power corporations; provide
guidelines for agreements and make paper-based payment;
- Direct
power corporations to provide training and provide sufficient personnel for
operation of pilot competitive wholesale electricity market.
b)
cooperate with relevant units in completing and piloting the agreement distribution
and electricity market simulation program under the direction of ERAV.
c)
cooperate with relevant units in assessing the operation of pilot competitive
wholesale electricity market in 2016 under the direction of ERAV.
3. Assign
the National Load Dispatch Centre to:
a)
satisfy requirements for infrastructure in service of operation of pilot
wholesale electricity market in 2016 as prescribed in Point a Clause 2 Article
2 of this Decision, complete pilot operation of such infrastructure and
commission it before December 15, 2015;
b)
provide assistance in connecting power corporations’ transmission line to the
electricity market intranet portal before December 15, 2015;
c)
provide sufficient personnel for operation of pilot wholesale electricity
market in 2016 before December 15, 2015;
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dd)
cooperate with relevant units in completing and pilot the agreement
distribution and electricity market simulator to consider distributing
agreements from July to the end of December, 2016.
4. Assign
power corporations to:
a)
satisfy requirements for infrastructure in service of operation of pilot
wholesale electricity market in 2016 as prescribed in Point a Clause 2 Article
2 of this Decision, complete pilot operation of such infrastructure and
commission it before December 15, 2015;
b)
provide training in pilot wholesale electricity market in 2016 and provide
sufficient personnel for participation in the electricity market before
December 15, 2015;
c) submit
weekly and monthly reports on operation and issues that arise during
participation in pilot competitive wholesale electricity market in 2016 to
ERAV.
5. Assign
generators to provide sufficient personnel and perfect infrastructure to
participate and cooperate with relevant units in operation of pilot competitive
wholesale electricity market in 2016.
6. Assign
the National Load Dispatch Centre, generators and power corporations to:
a) From
January 01 to the end of September 30, 2016: make paper-based payment and
address the issues that arise during payment according to the chart showing
power output Qc in 2016, monthly Qc and hourly Qc calculated and agreed upon by
the National Load Dispatch Centre, Electric Power Trading Company and
generators;
b) From
October 01 to the end of December 31, 2016: make paper-based payment and
address the issues that arise during payment according to the chart showing
monthly contractual power output Qc and hourly Qc calculated and agreed upon by
the National Load Dispatch Centre, power corporations and generators.
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PP. THE MINISTER
THE DEPUTY MINISTER
Hoang Quoc Vuong
APPENDIX 1
PROCEDURES FOR OPERATION OF
PILOT COMPETITIVE WHOLESALE ELECTRICITY MARKET IN 2016
(Enclosed with the Decision No. 12751/QD-BCT dated November 23, 2015 of the
Minister of Industry and Trade)
No.
Procedures
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Competitive electricity generation market
(actual operation)
Simulating operation of pilot competitive wholesale
electricity market (paper-based payment)
1
Distribute
contract for differences (CfD) to power corporations
Not
applicable
- From
January to the end of June, 2016: pilot distribution of 03 CfD to each Power
Corporation (see Appendix 2 for details).
- From July
to the end of September, 2016: pilot the contract distribution software
according to the rules specified in the Decision No. 8266/QD-BCT dated August
10, 2015 of the Ministry of Industry and Trade, complete the software and
pilot plans for distributing contracts. Procedures for distributing contracts
are provided in Appendix 3.
- From
October to the end of December, 2016: use results of contract distribution to
serve pilot distribution: assess methods and tools for distributing contracts
to make amendments (if necessary).
2
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Comply
with the Circular No. 30/2014/TT-BCT dated October 02, 2014 of the Minister
of Industry and Trade on operation of competitive electricity generation
market
- Use
power plants’ annual and monthly contractual power output data included in
the annual plan for operation of competitive electricity generation market to
simulate competitive wholesale electricity market.
-
Before December 15, 2015, the electricity system and market operator (National
Load Dispatch Centre) shall unveil the 2016 electricity market operation plan
which must include the annual contractual power output in the vesting
contract provided in Appendix 2 according to Circular No. 30/2014/TT-BCT.
-
National Power Transmission Corporation and power corporations shall review
delivery points between transmission grid and distribution grid and
collection of metering data at such delivery points and report thereon to
ERAV.
- Power
corporations shall inform ERAV of the chart showing power corporations’ total
demand (30-minute resolution) for typical days of each week of 2016 to serve
supervision and assessment of load forecasting error.
3
Prepare
monthly operation plan
Comply with
the Circular No. 30/2014/TT-BCT dated October 02, 2014 of the Minister of
Industry and Trade on operation of competitive electricity generation market
-
Before 20, M-1 month, according to the monthly operation plan, the
electricity system and market operator shall provide power corporations with
data on distribution of hourly contractual power output in month M….
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- In
June, August and September of 2016: ERAV, electricity system and market
operator and units shall cooperate in running the contract distribution
program and use distribution results for the fourth quarter of 2016.
4
Operate
electricity market in the next hour and day and real time
Comply
with the Circular No. 30/2014/TT-BCT dated October 02, 2014 of the Minister
of Industry and Trade on operation of competitive electricity generation
market
- Power
corporations shall visit electricity market website to supervise operation of
electricity market.
5
Make
payment
Comply with
the Circular No. 30/2014/TT-BCT dated October 02, 2014 of the Minister of
Industry and Trade on operation of competitive electricity generation market
-
Before 9h00, date D+2, the electricity system and market operator (National
Load Dispatch Centre) shall inform power corporations of electricity market
prices applied to date D.
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-
Before date D+6, power corporations shall confirm the list provided by the
electricity system and market operator and inform errors (if any).
- On
date D+6, the electricity system and market operator shall complete and send
the payment list to power corporations.
- The
electricity system and market operator shall provide power corporations with
hourly metering data of the power plant having a contract distributed to
power corporations.
- Power
corporations shall make payment under the distributed contract and inspect
the payment in the spot market which is published by the electricity system
and market operator.
- Power
corporations shall complete documents on the aforementioned payment.
APPENDIX 2
EXPECTED PILOT DISTRIBUTION
OF CONTRACTS TO POWER CORPORATIONS FROM JANUARY TO THE END OF JUNE, 2016
(Enclosed with the Decision No. 12751/QD-BCT dated November 23, 2015 of the
Minister of Industry and Trade)
No.
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Installed capacity (MW)
Power corporations
I
1.
Dam’Bri Hydropower Plant (IPP)
75
Northern Power Corporation
2. Phu
My 1 CCGT Power Plant (Genco 3)
1059
3. Pha
Lai 1 Thermal Power Plant (Genco 2)
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II
1. Da
Mi Hydropower Plant (Genco 1)
175
Hanoi City Power Corporation
2. Phu My
2.1 CCGT Power Plant (Genco 3)
860
3. Mao
Khe Thermal Power Plant (TKV - Power)
440
III
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125
Central Power Corporation
2. Phu
My 4 CCGT Power Plant (Genco 3)
440
3. Na Duong
Thermal Power Plant (TKV - Power)
100
IV
1. Dong
Nai 4 Hydropower Plant (Genco 1)
340
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2. Nhon
Trach 2 CCGT Power Plant (PV-Power)
750
3. Cam
Pha Thermal Power Plant (TKV - Power)
670
V
1. Ban Ve
Hydropower Plant (Genco 1)
320
Ho Chi Minh City Power Corporation
2. Nhon
Trach 1 CCGT Power Plant (PV-Power)
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3. Hai
Phong 1 Thermal Power Plant (Genco 2)
600
APPENDIX 3
EXPECTED PILOT DISTRIBUTION
OF CONTRACTS TO POWER CORPORATIONS FROM JULY TO THE END OF DECEMBER, 2016
(Enclosed with the Decision No. 12751/QD-BCT dated November 23, 2015 of the
Minister of Industry and Trade)
1.
Distribution of CfD signed between generators and EVN to CfD between generators
and power corporations shall be piloted according to the following rules:
- Average
costs incurred from purchase of input electricity under terms and conditions of
vesting contracts of power corporations are equivalent to each other;
-
Contractual price and quantity are calculated in conformity with the load curve
of customers of power corporations and in conformity with binding requirements
set out by the generator;
-
Commitments specified in the power purchase agreement between EVN and
generators are fulfilled;
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2.
Contracts shall be distributed by taking the 02 following steps:
- Using
CfD distribution software according to the rules specified in the Decision No.
8266/QD-BCT dated August 10, 2015 of the Minister of Industry and Trade on
approval for detailed design of Vietnam's competitive wholesale electricity
market;
-
Analyzing and assessing results of contract distribution: simulate electricity
market to estimate market prices and power generation output, etc.; use results
of electricity market simulation and contract distribution to determine total
revenue according to each plan and serve effect assessment. According to the
assessment results, consider adjusting input data and binding conditions for
contract distribution.
3. In
addition to piloting distribution according to the aforementioned steps, other
methods for piloting distribution may be used to carry out assessment and
analysis (not mandatory).