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New Zealand Electricity Market lessons for Electricity of Vietnam

Mediacom

Monday 21 May 2007, 5:41PM

By Mediacom

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Twenty one staff members from Electricity of Vietnam and the Electricity Regulatory Authority of Vietnam are being hosted IN New Zealand by Parsons Brinckerhoff Associates Ltd. This is the second phase of a training programme provided by PB Associates staff on electricity markets, and has been based on their’ own experience with the development and implementation of the New Zealand market.


Vietnam’s power sector is presently going through a process of reform and restructuring, as is the trend in many parts of the world. The Electricity Law has come into effect in Vietnam.


The Electricity Regulatory Authority of Vietnam (ERAV) was established and the vertically integrated utility Electricity Vietnam (EVN) is being unbundled on a functional basis into corporate entities. Efforts are also being made to facilitate competition in generation by introduction of a wholesale electricity market. The first phase of the electricity market is to establish an internal pilot market for EVN-owned power plants and also the power plants in which EVN is a major shareholder.


Dr Yen-Shong Chiao, of PB Associates’ Singapore office has led the programme. Dr Chiao said "Vietnam is on track to implement the next electricity market in the Asia Pacific region, following the steps of Singapore and Philippines. Establishing an electricity market is a major undertaking, requiring capability building for the key stakeholders so that the country can better manage the reform path to meet its policy objectives. The commitment of the Vietnamese Government is highly commendable - freeing up over 20 key staff members from their normal duties to attend a 3-4 month training course."


Mr Nguyen Tuan Anh, of EVN who is leading the group visit to New Zealand said “One of the important factors which contributes to the success of the electricity market in Vietnam is human resources training. The intensive training programme on electricity market conducted by PB Associates is a first step of a comprehensive training plan. The Hanoi based first stage of the programme provided basic knowledge on market design and operations for EVN staff.


The study tour in New Zealand is the next step to complete the programme. With the similarities to Vietnam’s power system in running hydro resources, especially in drought years, New Zealand practices and experiences are very important to Vietnam trainees. The in-house lectures and on-site visits help the trainees to gaine solid understanding about the related market issues.”


“The kindness and helpfulness of PBA staff is highly appreciated.” Mr Nguyen said.


The group, which arrived in Wellington on 13 May, is gaining first hand experience in Wellington from the Commerce Commission, Electricity Commission, Transpower, Meridian, Energy Market Services Ltd, Neil Walbran Consulting and in Hamilton from Genesis Energy, as well as visiting various power generation sites in the North Island before departing on 26 May.