Australia, Vietnam cooperate to develop competitive electricity markets

Thursday, 18/04/2024 10:15
(CPV) - 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 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.

Assistant Minister for Climate Change and Energy, Senator the Hon Jenny McAllister at a meeting with Vice Minister of Industry and Trade, Mr. Nguyen Sinh Nhat Tan.

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.

‘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.’

Australian Ambassador Andrew Goledzinowski and Mr .Tran Viet Hoa, Director of Electricity Regulatory Authority of Vietnam (ERAV) sign the MoU on collaboration to facilitate the development of competitive electricity market.

‘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./.