Comments on: Is Competition Always the Answer? A Case Study of Vietnam’s Power Sector

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Tue, 29 Oct 2019 15:22:30 +0000

[…] The minister believes that this will create internal competition and stoke greater efficiencies throughout the supply chain. This has been done before with Gordhan using Vietnam as an example of using internal competition to inspire healthy competition in an energy sect…. […]

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By: Thi Nguyen

Thi Nguyen — Mon, 06 Mar 2017 16:34:38 +0000

Hi Tue Anh, you are totally right. All points you figured out are critical energy issues of the country. I have other commentaries to share with you:
(1).Retail electricity tariff problem::
(2). Power planning problem because of heavy dependence on coal-fired power:
Cheers,
Anh Thi

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By: Thi Nguyen

Thi Nguyen — Sun, 05 Mar 2017 07:48:26 +0000

Sorry, I meant the complete sentence I wanted to say is “Actually, the National Assembly approved on the 21st November 2016 to stop development of the two planned nuclear power plants in Vietnam”

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By: Jenny Tue Anh Nguyen

Jenny Tue Anh Nguyen — Sun, 05 Mar 2017 02:17:20 +0000

Thanks for your comments. The blog post was an abbreviated (briefly updated) version of a published article from 2013 so I am aware of its shortcomings. I agree that:
1. It is wise that the Vietnamese government decided to phase out nuclear power. However, with or without these nuclear power plants, the market structure is basically pre-determined and foreseeably remains unchanged.

2. In terms of affordability, I have a book chapter coming on affordability of electricity and relation to ownership types in the EU which could pave the way for a future article on affordability of electricity in Vietnam.

3. The ‘debt’ carried by construction of nuclear power plants could have been major. However, with or without it, the debt being born by the power sector is already increasing the tariffs. I have a paper on the opportunity costs of market liberalisation in Vietnam Power Sector which could complement this claim.

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By: Thi Nguyen

Thi Nguyen — Sat, 04 Mar 2017 18:22:27 +0000

Dear Tue Anh,
Your analysis is really impressive to me and thanks for this comprehensive commentary. However, I think some points need to be updated, for example:
(1). “In addition, from 2020, with two nuclear plants in operation, the share of generating capacity by nuclear is expected to increase from 1.5% in 2020, to 6% in 2025 to 20-25% by 2050 (World Nuclear Association, 2012). And as expected from the Prime Minister’s decision in 2007, these nuclear plants will be state-owned. The future structure of the market is almost pre-determined, hence making it unattractive for private investors”. Actually, the National Assembly approved on the 21st November 2016 (). I have a commentary on Tuoi Tre Weekend Magazine about this nuclear phase out here:
(2). “The Issue of Affordability”: It is interesting to know that the retail tariff keeps unchanged from 2015 until now, with the average tariff around 0.076 US$/kWh. So I would suggest this session to cover from 2011 to the end of 2016 in order to reflect the affordability you wanted to highlight.
The sentence “Thirdly, the operation of new nuclear power plants in 2020, in contrast to what many people believe, will not reduce the price, because of the huge debt incurred in its construction will have to be paid off through the electricity price” in this session may need to be updated because of (1) above.
Anyway, I really enjoy reading your article and pleased to learn from you.
All the best,
Anh Thi

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