One of the biggest challenges of the Vietnamese power sector is to ensure long-term, competitively priced, adequate electricity supply to meet demand growing at high annual rates. To date, Vietnam has been successful in carrying out centralized power system planning, which makes possible to identify the portfolio of generation projects that minimize the total cost of supply (investments + operation + unserved energy) from a country perspective. Implementation of the outcomes of the planning process have been mainly based on direct award of generation projects for development, either to EVN or other State Owned Enterprises (SOEs) or private companies.

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In order to ensure long-term adequate electricity supply at least cost for Vietnam, it is necessary to move to a more competitive and transparent regime for procurement of new generation capacity, which is fully compatible with the market principles guiding the Vietnam Wholesale Electricity Market (VWEM).

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Activity 1: Assessment of application of existing mechanisms to ensure long term adequacy of supply.

Activity 2: Development of options to improve long term adequacy of power supplies

Activity 3: Design adequate mechanisms to ensure competitive implementation of investments in new generation capacity defined in the planning process

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