EVN approves the study on Power elasticity (24/05/2018)

Nguyen, Hoang Anh- Energy Economics, Demand Forescast and DSM dept., Institute of Energy

On May 8th, 2018, Vietnam Electricity (EVN) held a half-day technical conference to final review the study on Power Elasticity of Vietnam conducted by Institute of Energy (IE).

The conference was chaired by Mr. Vo Quang Lam, EVN Vice President for power business.15 delegates from EVN’s departments and with members from IE study team attended the meeting.
The study is under a contract between EVN and IE since 2014 and in the context of high power elasticity. It is approximately 1,87 times higher than the period 2011-2014, equivalent to that of some neigboring countries 30 years ago, such as Malaysia and Thailand , such as Malaysia or Thailand
Besides, the Decision No.1208/QĐ-TTg dated June 21st, 2011 on approving the National Power Master Plan VII set the target for power elasticity of 1.5 and 1.0 in 2015 and 2020 respectively.
For thoses reasons, the study must review the power elasticity of Viet Nam and identify factors affected to that coefficient the factors affecting. EVN also requested IE to evaluate the posibility of reducing the elasticicy as set out in Decision 1208/QĐ-TTg, and propose solutions to achieve the target.
On behalf of IE study team, Dr.Nguyen Ngoc Hung presented outcomes of the study. According to Dr. Hung, economic structure and power intensity are the main factors affecting the change of power elasticity. Vietnam is still under industrialization modernieation process, so it is impossible to reduce power elasticity by 1.0 times in 2020. However it could be achieved by end of period 2025-2030 since power intensity and economic structure are likely unchanged.
The study also proposes solutions related to Demand side management and Energy Efficiency to reduce power elasticity, including electricity tariff adjustment.
In conclusion, Mr. Lam hightly appriciates the study. Despite of that, Mr. Lam requests some corrections based on comments from EVN experts attending the conference. Also, the study should include recommenditons related to ESCO scheme and a mechanism supporting EE equipment manufacturers.

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