The rapid economic development in Vietnam placed a strain on the electricity load increasing on average over 10 percent a year. The growing demand for power triggered a diagnostic review by Vietnam of its overall energy sector, including the immediate problems in generation and transmission losses.
Our leading energy policy expert, a former Minister of Energy from NZ, undertook a whole of energy sector assessment for Vietnam: identifying the unique mechanisms of the Vietnamese electricity market, the projected long term energy demand, an analysis of various energy sector participants across the whole value chain, an analysis and identification of any regulatory barriers (local-regional-national government, investment entities), and future pricing through the analysis of close substitutes. The old paradigms that govern the electricity sector are evolving with traditional models of large, centralized generators as a means of producing electricity and maintaining reliability, changing.
The energy sector review identified several institutional weaknesses contributing to inefficient energy production, transmission, and consumption. Immediate changes undertake with the governance, management, and operations of the regional power distribution companies in Hanoi and Ho Chi Minh City that placed Vietnam on a pathway to improved energy efficiency.