3:24:18 PM | 10/11/2008
The Electricity Regulatory Authority of Vietnam (ERAV) Nov 6 held a seminar entitled "Model Power Purchase Agreement and Supporting Services for Vietnam's Competitive Power Generation Market" in a bid to apply the model power purchase agreement (PPA) in 2010, the Vietnam Economic Times newspaper reported.
Power purchase and generation companies that will participate in Vietnam's competitive power generation market will have to use the PPA from 2010, according to a government's decision to restructure the electricity sector and develop the national power market.
The agreement is expected to ensure equal risk sharing between the state-owned Electricity of Vietnam Group (EVN) and consumers as well as determine appropriate electricity prices and attract more investment in power projects.
PPA and supporting services should be clinched before groundbreaking of power plants in order to help investors easily seek and arrange investment capital for their power projects, the decision said.
ERAV has basically completed the master plan a competitive power generation market and will submit it to the government for approval in the fourth quarter this year.
According to the master plan for Vietnam’s electricity market will be developed in three phases. A competitive power generation market is slated to be developed in the 2005-2014 period.
Between 2015 and 2022, the market will operate under the wholesale business model. The last phase will feature a competitive retail market after 2022, with a pilot period from 2022 to 2024 and a fully-constituted competitive retail market be applied across the country after 2024. (Vietnam Economic Times, New Hanoi)
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