A historic turning point in the power system operator

After 30 years of establishment and development, the National Electricity System and Market Operation Company Limited has entered a new phase with a new mission.

Overcoming difficulties in converting the operating model, with the close attention and direction of the leaders of the Ministry of Industry and Trade and the efforts of the leadership and employees, the National Electricity System and Market Operation Company Limited (NSMO) has successfully completed the assigned tasks in its new role. Reporter of Industry and Trade Newspaper had an interview with Mr. Nguyen Duc Ninh - General Director of NSMO about the achievements and orientation for 2025.

Commanding the system to operate well despite sudden increase in electricity demand

- In 2024, despite changes in the organizational structure, NSMO has successfully completed the task of managing and operating the power system safely, ensuring sufficient electricity supply for the socio-economy. Could you please review the outstanding achievements of the unit after 1 year of operation?

Mr. Nguyen Duc Ninh - General Director of NSMO Company

Mr. Nguyen Duc Ninh: 2024 marks a special year in the operation of the National Power System Control Center (formerly) and now the National Power System and Market Operation Company Limited. In the first 7 months of the year, the National Power System Control Center (NLDC), with 30 years of experience in the field of command and operation of the power system and the Vietnamese power market, has continued to ensure the task of operating the national power system and the national power market in a safe, stable and optimal manner. From August 2024, the unit officially transformed into the National Power System and Market Operation Company Limited (NSMO) with the transfer process from EVN to the State Capital Management Committee at Enterprises and then to the Ministry of Industry and Trade. This transition process took place in the context of the national power system facing many fluctuations and challenges. However, with the direction and close coordination from the Ministry of Industry and Trade, the Electricity Regulatory Authority, and the Vietnam Electricity Group, along with the continuous efforts of all staff, the former NLDC and the current NSMO have successfully completed their assigned tasks.

Following a year of many fluctuations in 2023 and the requirement to ensure electricity supply in all situations in 2024, NSMO still successfully completed the task of planning and commanding the operation of the power system. It is expected that by the end of December 2024, the total output of the National Power System will reach ~308.97 billion kWh, an increase of ~9.82% compared to 2023, 2.7 billion kWh higher than the annual plan, and ~1.6 billion kWh lower than the updated annual plan (310.6 billion kWh). The highest daily output has exceeded the threshold of 1 billion kWh/day, while the maximum load of the National Power System has reached 48,955 MW, an increase of 7.5% compared to 2023.

In 2024, NSMO has directed the energization and commissioning of many new power source and grid projects and ensured the safest, most continuous, stable, reliable and highest quality operation of the power system. The total new power source connected to the grid in 2024 is 1,588 MW (including 558.4 MW of hydropower, 236 MW of small hydropower, S1 - Vung Ang II - 697 MW and 96.8 MW of wind power), bringing the total installed capacity of the National Power System to 86,391 MW. In 2024, the Company has also energized and accepted many important power line (DD) and transformer station (TS) projects on the 500kV grid, especially the 500kV line 3 from Quang Trach to Pho Noi. This is a key project of the National Power System in 2024 and the following years, contributing significantly to the safe and stable operation of the power system, bringing great economic and political efficiency.

Operating index is much lower than the prescribed standard

The performance indicators for power quality in 2024 achieved good results: Frequency deviation index (FDI) was 0.003%, much better than the standard specified in the Circular on Regulations on the Power Transmission System. Voltage deviation index (VDI) of the 500kV grid reached 0.39%. The VDI index of the 220/110kV grid in all regions reached an average of 0.04/0.11, better than the performance index in 2023.

The work of planning operations and scheduling the mobilization of the electricity market (TTD) is carried out in accordance with regulations to ensure the safe and continuous operation of the power system. Currently, there are 112 plants directly participating in the TTD with a total installed capacity of 32,431 MW, accounting for about 38% of the total installed capacity of the entire system, an increase of 1% compared to 2023. In 2024, there will be 3 new plants participating in the market with a total capacity of 1,396 MW (of which 1 plant will switch to the ACT mechanism).

Participate in institution building and development of competitive electricity market

In 2024, NSMO will continue to actively participate in the development of the wholesale and retail electricity market such as (i) Participating in the development of the DPPA mechanism, (ii) Participating in the completion and development of and participating in the amendment of circulars and regulations related to the operation of the power system and the electricity market, (iii) Participating in international cooperation programs on electricity market development.

Safely operate infrastructures such as SCADA/EMS systems and information technology systems, avoiding subjective incidents in the context of the power system continuing to develop strongly, with a 30-minute trading cycle, thereby promoting the role of serving the operation of the power system and the electricity market.

Successfully completed dual tasks, calculating long-term vision of electricity import

In 2024, NSMO undertook many tasks assigned by EVN and the Ministry of Industry and Trade in addition to the official tasks of NSMO, especially including medium and long-term calculations such as calculating the ability to purchase electricity from China until 2030, and at the same time made many recommendations on the policy of importing Lao power plants at the request of EVN and other units; and provided comments on the technical design of power grid projects.

Although there are still certain shortcomings, in general, in 2024, the Board of Directors and all staff in NSMO worked with high spirit and enthusiasm to successfully complete the "dual task": (i) ensuring the safe and reliable operation of the power system, transparent electricity market, and (ii) ensuring the successful transformation of the organizational model. The results achieved in 2024 are not only a testament to the capacity and role of NLDC/NSMO in performing the core task of operating the power system and electricity market, but also an important basis for orienting development in the following years.

Returning to the Ministry of Industry and Trade – historical milestones and initial results

During the process of separation, re-establishment and transfer to the Ministry of Industry and Trade, what advantages and difficulties did you see?

Mr. Nguyen Duc Ninh: From August 2024, the unit officially transformed its model from the National Power System Dispatch Center under EVN to NSMO Company under the State Capital Management Committee at Enterprises and under the Ministry of Industry and Trade (after the handover ceremony between the Committee and the Ministry of Industry and Trade on August 12, 2024). The transformation of NSMO's model is part of the roadmap for restructuring the electricity industry for the period 2021 - 2025 according to Decision No. 168/QD-TTg dated February 7, 2017 of the Prime Minister. This is considered a breakthrough step, contributing to promoting the roadmap for developing a competitive electricity market in Vietnam, a correct and important step to develop a sustainable electricity market. At the same time, it will contribute to increasing transparency and fairness for the upcoming competitive electricity market, contributing to ensuring national energy security in the context of global integration.

During the process of separation, new establishment and transfer to the Ministry of Industry and Trade, the biggest advantage is that NSMO received close direction from the Government and the Prime Minister; With the drastic and timely management of the Ministry of Industry and Trade and related ministries and branches, along with the synchronous and effective coordination of Vietnam Electricity Group and partner enterprises, NSMO has quickly consolidated and stabilized its organizational structure according to the new model, proactively and synchronously implemented measures to ensure electricity supply in all situations and has successfully completed the assigned "dual task": Maintaining stability without interruption during the organizational transformation process, while organizing the safe energization and operation of the 500kV line 3, effectively responding to major storms, especially super typhoon Yagi, ensuring smooth and effective dispatching and operation of the power system and electricity market, contributing significantly to the provision of sufficient, safe and stable electricity, meeting the production - business needs and people's daily lives.

Overcoming difficulties and challenges - worthy of being the strategic management agency of national electricity

Regarding difficulties and challenges, the difficulties and challenges in operation still exist from previous years such as (i) the power system still lacks the ability to operate flexibly in the context of the increasing proportion of renewable energy sources (RE) as well as the poor response capacity of thermal power sources, (ii) many hydropower plants over 30MW are regulated by 11 inter-reservoir operation processes that still have some shortcomings and problems in harmonizing with electricity market regulations and power system needs, (iii) distributed sources (rooftop solar power and small hydropower) continue to be the types of sources with deep penetration in the National Power System, (iv) Cambodia's power system continues to grow in scale but still has many technical problems that cause difficulties in operation as well as potential risks of incidents for the Cambodian interconnected power grid, (v) infrastructure serving the operation of the power system and the electricity market has been operating for a long time without investment and upgrading.

In addition, in 2024, new difficulties and challenges have arisen in the process of model conversion and company establishment, such as (i) the NSMO's Administration Department has no experience with the model of a LLC in which the State holds 100% of the charter capital, so there are some difficulties in the initial stages of establishment, (ii) the costs and salary mechanism are not attractive, especially in the information technology and security sector, leading to certain difficulties in recruiting and attracting talents, (iii) the NSMO's charter capital is small while the investment demand to upgrade and modernize the power system and operate electricity market transactions is very large, leading to NSMO having great difficulty in mobilizing capital to invest in infrastructure, (iv) when becoming a LLC, NSMO incurs many new costs for the operation of a Company, these costs when the National Dispatch Center still accounts for them are often not incurred...

In 2025, what programs and plans will the unit implement to successfully complete the assigned tasks?

Mr. Nguyen Duc Ninh: In the context of the economy starting to recover, the demand for electricity in 2025 is expected to continue to grow strongly while new power sources are not added commensurate with the demand for load growth. Therefore, the operation of the National Power System in 2025 tends to be more stressful than in 2024 and is expected to face many difficulties and challenges. To ensure that the standards for operation, safety, reliability and economy of the power system are met, the calculation and operation of the National Power System in general and the Northern Power System in particular in 2025 will continue to have many challenges for NSMO.

With a leading role in power system dispatching and electricity market management, NSMO identifies the main goals for 2025 as follows: (i) Ensuring safe and stable operation of the power system, transparent and optimal electricity market in the context of many difficulties and challenges in ensuring power supply security in 2025; (ii) Strengthening the completion and investment in infrastructure and technical tools in the pivotal year of 2025 with a vision to 2030, meeting the development of Vietnam's power system - according to the National Power Master Plan VIII.

Absolute guarantee of electricity supply – imperative for double-digit growth

In order to promptly overcome shortcomings and limitations, continue to innovate, improve work quality, and successfully complete assigned tasks with the highest goal of: "Absolutely ensuring sufficient, safe, and effective electricity supply to serve socio-economic development and people's lives in all situations" , the leaders, officers, employees, and workers of NSMO Company thoroughly grasp and focus on performing well the following key tasks:

Firstly, continue to thoroughly grasp the new viewpoints, guidelines and policies of the Party and State on energy development in general, and the field of power system operation and electricity market in particular; at the same time, promptly advise on institutionalization into strong, synchronous and feasible mechanisms and policies for drastic and effective implementation, creating new space and driving force for the development of the electricity sector and the country's economy.

In the immediate future, NSMO needs to actively and proactively propose and coordinate with the relevant Departments and Divisions under the Ministry of Industry and Trade in the development of legal documents detailing the implementation of the Electricity Law (amended), especially in areas related to the operation of the power system and the electricity market; at the same time, proactively advise and propose specific and feasible solutions to remove difficulties and problems (if any), ensuring the safe, stable and reliable operation of the national power system and the fair and transparent operation of the electricity market, contributing together with EVN and related units to ensure electricity supply for the needs of socio-economic development and serving people's lives.

Second, focus all resources on safe and stable operation of the power system and transparent electricity market, ensuring power supply security in 2025 with high load growth scenarios of about 12%-14% (in line with the GDP growth target of 8% or more as directed by the Government and the leaders of the Ministry of Industry and Trade).

Third, proactively coordinate with the Department of Planning and Finance, functional units under the Ministry of Industry and Trade, and relevant units in the work of developing mechanisms and preferential policies, ensuring infrastructure and essential systems in the operation of the power system and the management of the electricity market. Coordinate in arranging and allocating investment capital in the medium-term public investment plan; in which, pay special attention to arranging capital and implementing key projects to meet the development in scale and complexity of the power system in the future such as: (i) Project of an independent building for the National Power System Dispatching Unit and the operation of electricity market transactions in the E5 Cau Giay area synchronized with the new phase SCADA/EMS system, (ii) Project to build a new metering data collection and management system serving the competitive wholesale and retail electricity market, (iii) Project of synchronizing the configuration of 500 kV lines, circuit 3.

Fourthly, regarding the human resources of the Company, it is necessary to proactively coordinate with the Department of Organization and Personnel - Ministry of Industry and Trade to soon complete the Company's Organization, paying special attention to strengthening both the quality and quantity of the management and operation force, engineers to ensure the human resources to operate the System safely and stably in the coming years. At the same time, coordinate with functional units under the Ministry to issue or advise competent authorities to issue mechanisms and policies for training, fostering and attracting high-quality human resources to meet the requirements of tasks in the new situation.

Fifth, in the long-term vision, it is necessary to promote international cooperation activities to learn from experience, improve the qualifications of the engineering team, perfect the dispatch model, and prepare infrastructure to meet the requirements of implementing the revised Master Plan 8 and the requirements of operating large-scale power systems in the region. At the same time, actively participate in proposing the development of new operating mechanisms for the power system in the future, including integrating new energy sources (renewable energy, nuclear power, hydrogen, energy storage systems, etc.), as well as promoting the development of the Vietnamese electricity market, ensuring transparency, fairness, and efficiency.

Thank you!

Source: https://congthuong.vn/buoc-ngoat-lich-su-o-co-quan-dieu-hanh-he-thong-dien-366880.html