Australia and Vietnam Develop Competitive Electricity Markets

On 17 April, the Australian Embassy in Vietnam and the Electricity Regulatory Authority of Vietnam (ERAV) signed a Memorandum of Understanding (MoU) on collaboration to facilitate the development of competitive electricity market.

The MOU is further evidence of the deepening partnership between Australia and Vietnam in the climate and energy sector. Australia and Vietnam in March elevated their relationship to a Comprehensive Strategic Partnership (CSP) with a pillar on climate, energy and environment – the first of its kind for an Australian CSP.

This MoU commits the Department of Foreign Affairs and Trade (DFAT) and ERAV – the energy regulator under the Ministry of Industry and Trade of Viet Nam (MOIT), to share experiences and develop cooperation activities to facilitate the development of competitive electricity markets in the context of high renewable integration – a shared opportunity for the two countries.

The MOU builds on existing activities developed under the Partnerships for Infrastructure (P4I) and other bilateral and regional programs, to support: the development of the competitive electricity retail market, review and provide practical suggestions on the regulatory framework and mechanisms for regulating transmission and distribution network segment under a competitive retail market; the integration of greater Variable Renewable Energy (VRE) sources into the power system and market; and implementation of Demand Response Programs, capacity building, training and other activities.

The signing ceremony was witnessed by Senator the Hon Jenny McAllister, Assistant Minister for Climate Change & Energy, and MOIT’s Vice Minister Nguyen Sinh Nhat Tan.

‘Australia has the same challenges and aspirations to ensure sustainable, secure and fair electricity services and the foundation for prosperity and economic growth,’ Australian Ambassador to Vietnam Andrew Goledzinowski said, ‘This partnership provides an important opportunity to share knowledge and explore solutions for the Vietnamese power sector.’

'Australia values our relationship with Vietnam. By strengthening climate, environment and energy cooperation we can realise the opportunities of a clean energy future.

I am pleased to see the growing relationship between Electricity Regulatory Authority of Vietnam (ERAV) and the Australian Embassy that will strengthen bilateral engagement on climate and energy,’ Assistant Minister McAllister said.

Vice Minister of Industry and Trade, Mr Nguyen Sinh Nhat Tan emphasised the importance of developing competitive electricity markets to support Vietnam’s ambitious decarbonisation agenda through PDP8.

‘Creating competitive electricity markets alongside the appropriate regulatory frameworks can attract the private investment needed to achieve Vietnam’s renewable energy targets,’ he said.

Media contact:

Ms Nguyen Le Trang, Senior Media Officer Australian Embassy Viet Nam: [email protected] or 0983656307