| Author | Duong Van Dang |
| Note | A project submitted in partial fulfillment of the requirements for the
degree of Master of Business Administration (Executive) in
International Business-Management of Technology (VN) |
| Publisher | Asian Institute of Technology |
| Abstract | Initiated with the decision No. 26/2006/QD-TTg, Vietnam's power sector has been set in roadmap for restructuring. After five years of preparation (including legal framework building, pilot operation, ..), electricity market of Vietnam was official started on July 1st, 2011 with competition in generation section.
Like other markets with high volatility of price, participants of electricity market have to deal with risks due to price uncertainty. In addition, the facts that electricity is not efficiently storable, and supply of raw material to hydropower plants (water) is uncertain make it more difficult for power plants (especially hydropower) to efficiently operate in the market.
In Vietnam Competitive Generation Market (VCGM), mechanism of contract for difference (CfD) provides sellers (generation companies) and buyer with a tool for long-term risk management. CfD will be annually conducted in contract market as a part of year-ahead market plan. This mechanism will help engaged parties hedge risks caused by price volatility in the spot market.
This research analyses impact of CfD in VCGM in the case of A Vuong Hydropower Plant. In addition, tool of VaR for short-term risk management is also discussed with empirical application at A Vuong Hydropower Company in order to provide decision makers with a tool to deal with price uncertainty. |
| Year | 2012 |
| Type | Project |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (Executive) in International Business - Management of Technology (VN/BKK)) |
| Chairperson(s) | Sununta Siengthai;Soegaard, Ragnar; |
| Examination Committee(s) | Do Ba Khang; |