
- •Abstract
- •Foreword
- •Acknowledgements
- •Executive summary
- •Many models of multilateral power trade
- •Minimum requirements
- •Proposed trade models for ASEAN
- •Findings and recommendations
- •Highlights
- •Overview of study
- •Categories of multilateral power trade
- •International experiences in multilateral power trading
- •Minimum requirements for establishing multilateral power trading
- •Political requirements
- •Technical requirements
- •Institutional requirements
- •Building upon existing efforts
- •LTMS–PIP
- •Proposed trade models for ASEAN
- •Harmonised bilateral trading
- •Secondary trading model
- •Primary trading model
- •Conclusion
- •1. Introduction
- •Models of cross-border power trade
- •ASEAN principles for developing multilateral power trade
- •Overview of ASEAN’s energy sector
- •References
- •2. AMS perspectives
- •APG region: North
- •Cambodia
- •Planned development, including cross-border integration
- •Planned development, including cross-border integration
- •Myanmar
- •Planned development, including cross-border integration
- •Thailand
- •Planned development, including cross-border integration
- •Viet Nam
- •Planned development, including cross-border integration
- •APG region: South
- •Indonesia (Sumatra)
- •Planned development, including cross-border integration
- •Malaysia (Peninsular)
- •Planned development, including cross-border integration
- •Singapore
- •Planned development, including cross-border integration
- •Malaysia (Sarawak and Sabah)
- •Planned development, including cross-border integration
- •APG region: East
- •Brunei Darussalam
- •Planned development, including cross-border integration
- •Indonesia (West Kalimantan)
- •Planned development, including cross-border integration
- •The Philippines
- •Planned development, including cross-border integration
- •References
- •3. Regional perspectives
- •Existing regional integration efforts among AMS
- •LTMS–PIP
- •BIMP–EAGA interconnectivity project
- •Building off existing efforts: The GMS grid codes
- •References
- •4. International case studies
- •Primary power trading arrangements
- •Power pooling in PJM’s eastern territory
- •The measurable value of markets in the PJM region
- •ISO New England
- •Market overview
- •Market structure
- •Nord Pool
- •Governing agreements and regulation
- •Market overview
- •Market structure
- •Policy and regulation
- •Secondary power trading arrangements
- •SAPP
- •SIEPAC
- •Market overview
- •Nascent power trading arrangements
- •SARI/EI
- •Market overview
- •Market structure
- •Key findings: Lessons for ASEAN
- •Drivers and benefits
- •Design options and minimum requirements
- •The need for enabling institutions
- •Financial implications of regional institutions
- •References
- •5. Establishing multilateral power trade in an ASEAN context
- •Minimum requirements for establishing multilateral power trade
- •Harmonised technical standards (grid codes)
- •Summary of minimum level of grid code harmonisation
- •Building off existing efforts: The GMS grid codes
- •External (third-party) access to domestic grids
- •Wheeling charge methodology
- •Data and information sharing requirements
- •Dispute resolution mechanism
- •Other minimum requirements
- •Funding implications of stepwise implementation
- •Role of institutions
- •Overview of existing ASEAN regional institutions
- •ASEAN Secretariat
- •HAPUA
- •AERN
- •Mechanism for settling transactions
- •Potential role of a CCP
- •Optional requirement: Trading currency or currencies
- •Potential options for regional institutions in ASEAN
- •References
- •6. Models for establishing multilateral power trade in ASEAN
- •Overview of proposed models
- •Establishing harmonised bilateral trade with wheeling
- •Overview of trade model
- •Additional requirements and analytical gaps
- •Potential role of institutions
- •Example transaction
- •Establishing a secondary trading model
- •Overview of trade model
- •Additional requirements and analytical gaps
- •Potential role of institutions
- •Example transaction
- •Establishing a primary trading model
- •Overview of trade model
- •Additional requirements and analytical gaps
- •Potential role of institutions
- •Example transaction
- •7. Implications for ASEAN stakeholders
- •Utilities
- •Regulators
- •Investors
- •Consumers
- •Acronyms and abbreviations
- •Table of contents
- •List of figures
- •List of tables

Establishing Multilateral Power Trade in ASEAN |
AMS perspectives |
memoranda of understanding have been signed between Thailand and Lao PDR, and between Thailand and Myanmar, to help meet this anticipated need.
Viet Nam
Over the past six years, electricity demand in Viet Nam has almost doubled. Some of this increase in demand has been met by new hydropower, which as of 2016 made up approximately 42% of Viet Nam’s installed capacity, or approximately 30% of generation (Figure 18). The rest of the increase has primarily been met by coal capacity (which, between new and existing capacity, now makes up about a third of total generation), followed by natural gas and other sources (primarily renewables, which contribute 4% of total generation).
Figure 18. Viet Nam’s generation mix, total generation and total demand, 2011-16
Source: ASEAN Centre for Energy.
Viet Nam had significant investments in hydropower from 2011 to 2016. The share of fossil fuels is still relatively high.
Viet Nam’s electricity market is structured with a single buyer, with the state-owned Vietnam Electricity (EVN) responsible for transmission, distribution and a large portion of generation (with the rest provided by IPPs). Viet Nam is unique among northern APG countries in one key respect: all generation participates in a cost-based pool, whereby all generating companies offer price-quantity pairs for the supply of electricity based on predetermined variable costs. The generation sector is regulated by the Electricity Regulatory Authority of Vietnam, which is a regulatory body under the Ministry of Industry and Trade. Viet Nam has also established a number of cross-border interconnections for trading electricity with neighbouring countries such as China, Cambodia and Lao PDR. The details of the interconnections are listed in Table 4.
31

Establishing Multilateral Power Trade in ASEAN |
AMS perspectives |
Table 4. Viet Nam’s interconnections with its neighbours (as of 2017)
Country |
Voltage (capacity) |
Type |
|
|
|
|
|
|
Cambodia |
|
|
|
|
|
Chao Doc – Takeo |
220 kV (200 MW) |
AC |
|
|
|
China |
|
|
|
|
|
Tân Kiều – Lào Cai |
220 kV |
AC |
|
|
|
Láo Cai – Xinqiao |
220 kV |
AC |
|
|
|
Ha Giang – Maguan |
220 kV |
AC |
|
|
|
Malutang – Hà Giang |
220 kV |
AC |
|
|
|
Tinh Quang Ninh – Fangchenggang |
110 kV |
AC |
|
|
|
Ha Giang – Maomaotiao |
110 kV |
AC |
|
|
|
Láo Cai – Hekou |
110 kV |
AC |
|
|
|
Lao PDR |
|
|
|
|
|
Xekaman 1 (Lao PDR) – Pleiku 2 (Viet Nam) |
220 kV (290 MW) |
AC |
|
|
|
Xekaman 3 (Lao PDR) – Thanh My (Viet Nam) |
220 kV (248 MW) |
AC |
|
|
|
Source: ASEAN Centre for Energy.
Planned development, including cross-border integration
Viet Nam’s most recent PDP (Revision VII) moves planned nuclear development further out into the future. In the near term, increased demand will be met from new renewable energy and coal-fired generation, with coal making up 43% of its domestic capacity by 2030, followed by hydropower and limited amounts of natural gas-fired generation.
Figure 19. Viet Nam’s power mix 2016-30
Source: ASEAN Centre for Energy.
Viet Nam expects a large growth in coal-fired power plants to cover the increased domestic demand by 2030.
32