How much does it cost to transform outdoor power supply in Vietnam

Why is Vietnam a good place to buy electricity?

Vietnam has one of Southeast Asia’s most efficient power markets, owing to low-cost resources like those hydro and coal. In contrast to neighboring countries, the country has achieved roughly 99 % access to electricity at a relatively low cost.

Are small-scale electricity producers in Vietnam able to sell electricity to EVN?

Indeed, many small-scale electricity producers in Vietnam, small and medium-sized hydro and wind power plants (e.g., the Tuy Phong plant), have not been able to sign contracts for the sale of electricity to the EVN, which operates the distribution network (MBS, 2015).

How does DPPA affect Vietnam's Electricity Market?

This is a factor that has a strong impact on Vietnam's electricity market. The DPPA mechanism allows large consumers to buy electricity directly from renewable energy power plants. Power transactions between parties are conducted via the spot market in accordance with the rules and regulations of VWEM.

What is Vietnam's Electricity price cap in 2022?

The price cap of 2022 is 1602.3 VND / kWh. After basically controlling the Covid-19 epidemic, Vietnam's economy has to face rising fuel prices. This is a factor that has a strong impact on Vietnam's electricity market. The DPPA mechanism allows large consumers to buy electricity directly from renewable energy power plants.

Will Vietnam's Electricity demand increase 4x by 2040?

Electricity demand could increase by 4x by 2040 (from the 2020 levels) - in line with Vietnam’s growth and development objectives. Lower carbon electricity supply will require choosing higher capital cost solutions now.

Why are hydropower production costs lower in Vietnam?

The reasons for the lower production costs of hydropower in Vietnam are the natural advantages of the country in hydro, combined with the ‘implicit subsidy’ to hydro in that the cost of environmental impacts, such as land loss for plant reservoirs, changing river environmental conditions, and ecology, have not been taken into account.