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The Great Energy Transition: A New Era for the A0 Power System Dispatch Center as it Parts Ways with EVN and Joins the Ministry of Industry and Trade

14 August, 2024

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On August 12th, the State Capital Management Committee in enterprises held a conference to transfer the National Power System Dispatch Center (A0) from the Vietnam Electricity Group to the Ministry of Industry and Trade.

The National Power System Dispatch Center is now under the Ministry of Industry and Trade and has been renamed as the National Power System and Market Operation Company Limited (NSMO).

The Prime Minister has directed the separation of A0 from EVN and the establishment of NSMO with 100% state capital. Photo: Ministry of Industry and Trade

Regarding the relationship between EVN and NSMO following the transfer to the Ministry of Industry and Trade, EVN stated that it has essentially completed the draft contract for providing power system dispatch and electricity market operation services between EVN and NSMO. They are also developing a coordination mechanism between EVN and NSMO during the process of annual plan formulation and power system and market operation, which will be reported to the Ministry of Industry and Trade for approval to ensure efficient power supply.

EVN will continue to review assets and resources owned by EVN that NSMO needs to use and exploit, as well as other matters arising after the transfer, to reach agreements and sign contracts/arrangements for implementation. Simultaneously, EVN will scrutinize power purchase agreements with BOT power plants and imported electricity projects, continue working with BOT power plants, and proactively propose solutions or recommendations to competent authorities to prevent any complaints or lawsuits.

EVN Chairman Dang Hoang An pledged to coordinate and support NSMO to ensure the safe, stable, and reliable operation of the power system, while also researching and proposing feasible solutions to competent authorities to support NSMO’s stable and continuous operation after its establishment.

Mr. Nguyen Hoang Anh, Chairman of the State Capital Management Committee, affirmed, “The separation of A0 and the establishment of NSMO under the State Capital Management Committee, and its subsequent transfer to the Ministry of Industry and Trade, marks not just a structural change but also a significant step forward, signifying the development and maturity of Vietnam’s electricity industry in this new era.”

Minister of Industry and Trade, Nguyen Hong Dien, emphasized the critical nature of dispatching, operating the national power system, and managing the electricity market safely, stably, and reliably. These responsibilities fall under the purview of the state management agency to ensure objectivity, impartiality, and fairness among affected entities.

Therefore, the Government and the Prime Minister directed the separation of A0 from EVN and the establishment of NSMO with 100% state capital to operate independently from EVN. Simultaneously, the ownership representative’s authority was transferred to the Ministry of Industry and Trade, as they possess the requisite functions, apparatus, and specialized personnel to effectively execute this task.

“This move also responds to the objective demands and inevitability of operating the national power system and competitive electricity market in accordance with market mechanisms, as directed by the Prime Minister,” affirmed Minister Nguyen Hong Dien. “It contributes to ensuring energy security and serving socio-economic development and civil livelihood.”

According to Minister Dien, although A0 (now NSMO) has been separated from EVN, both are state-owned enterprises entrusted with ensuring national electricity security under the state management of the Ministry of Industry and Trade and the State Capital Management Committee.

NSMO’s chartered capital at the time of its establishment was VND 776 billion. The supplementation of chartered capital and its sources for NSMO during its operation will be determined by the state-owned capital representative based on the Law on Management and Use of State Capital Invested in Production and Business at Enterprises and other relevant legal documents. This will be done in consideration of the actual progress of NSMO’s investment projects.

NSMO inherits all rights, obligations, and lawful interests of A0, which were previously performed by A0 and EVN in relation to A0, in accordance with legal regulations.

Luong Bang