| Author | Phan Nguyen Minh |
| Call Number | AIT RSPR no. ET-03-01 |
| Subject(s) | Electric power transmission--Prices|zVietnam
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| Note | A research study submitted in partial fulfillment of the requirements AIT RSPR Nn. ~r-o 3-1 for the degree of Masters of Engineering |
| Publisher | Asian Institute of Technology |
| Abstract | The Electricity of Vietnam is undergoing one of the most significant reforms, changing from management structure in term of increase the ability and quality of the services. More private sector participation will be encouraged with an aim to increase competitiveness and share the investment in electricity generation business in Vietnam. Such competition will bring lower prices and more efficient operation and better services for electricity customers thus providing greatest benefit to consumers. As of 2003, the regulatory framework of the Electricity of Vietnam is still monopoly, but private sector is encouraged to join the market. Such this scenario, there will be change fundamentally the relationship between the cost of producing electricity and the price charged for it in order improve the economic efficiency. Under regulatory system, electricity prices have generally been equal to the average costs of producing the electricity, !mown embedded costs. In future years, the electricity prices will not be set to average cost since the marginal cost has agreed as an efficiency price by the current economists. Furthermore, now a day the maximum the benefit is not concerned only in the firm but also the whole society. As a result, the electricity generation price wi ll be set by the operating costs of the most expensive generating unit needed to meet demand, or what is mentioned in economics as the marginal cost of production. This report provides fundamentals for analysis of electrici ty price in Vietnam under the regulated enviromnent based on the locational marginal cost (LMP) for the year 2003. Zonal pricing scheme is implemented based on the nodal pricing. Zonal prices vary geographically to reflect locational value of electricity in each hour depending on the system conditions thus provides the correct price signals and promotes economic efficiency both of the generators and the electricity consumers. The LMP is then used as a foundation to implement the method for transmission pricing. |
| Year | 2003 |
| Type | Research Study Project Report (RSPR) |
| School | School of Environment, Resources, and Development (SERD) |
| Department | Department of Energy and Climate Change (Former title: Department of Energy, Environment, and Climate Change (DEECC)) |
| Academic Program/FoS | Energy Technology (ET) |
| Chairperson(s) | Shrestha, Ram M. |
| Examination Committee(s) | Bhattacharyya, Subhes C.;Weerakorn Ongsakul;Nadarajah Mithulananthan |
| Scholarship Donor(s) | Electricity of Vietnam |
| Degree | Research Studies Project Report (M.Eng.) - Asian Institute of Technology, 2003 |