Vietnam, Australia to work on developing competitive electricity markets

Developing competitive electricity markets in the context of high renewables integration will the focus of a collaboration agreement between the Electricity Regulatory Authority of Vietnam (ERAV) and the Australian embassy.

A memorandum of understanding to this effect was signed by both parties on Wednesday.

The MoU commits the Department of Foreign Affairs and Trade (DFAT) and ERAV – the energy regulator under the Ministry of Industry and Trade (MoIT), to share experiences and cooperate with each other in facilitating the development of competitive electricity markets.

“The MoU builds on existing activities developed under the Partnerships for Infrastructure (P4I) and other bilateral and regional programs to support: the development of the competitive electricity retail market; review and provide practical suggestions on the regulatory framework and mechanisms for regulating transmission and distribution network segments under a competitive retail market,” an embassy release said.

The partnership will also help integrate greater Variable Renewable Energy (VRE) sources into the power system and market; as also implement Demand Response Programs, capacity building, training and other activities, it added.

The agreement was further evidence of deepening partnership between Australia and Vietnam in the climate and energy sector, the embassy statement stressed.

Australia and Vietnam elevated their relationship to that of a comprehensive strategic partnership (CSP) during Prime Minister Pham Minh Chinh’s Canberra visit last March, with climate, energy and environment as a focus.

Wednesday’s signing ceremony was witnessed by Jenny McAllister, Australian Assistant Minister for Climate Change & Energy, and Nguyen Sinh Nhat Tan, Vietnam’s Deputy Minister of Industry and Trade.

“This partnership provides an important opportunity to share knowledge and explore solutions for the Vietnamese power sector,” said Australian Ambassador to Vietnam Andrew Goledzinowski.

Deputy Minister Tan emphasized the importance of developing competitive electricity markets in Vietnam’s ambitious decarbonization agenda as expressed in the national Power Development Plan VIII adopted last May.

“Creating competitive electricity markets alongside the appropriate regulatory frameworks can attract the private investment needed to achieve Vietnam’s renewable energy targets,” Tan said.