Thursday, June 14, 2018

Vietnam taking PH model on WESM establishment


Published June 13, 2018, 10:00 PM By Myrna M. Velasco

Beijing, China – State-run Vietnam Electricity (EVN) is sending teams to the Philippines to study and catch sight of a first-hand reference on how it can develop its electricity spot market for the Vietnamese power sector.
In an interview on the sidelines of the recently concluded Belt and Road Initiative (BRI) International Summit at the China World Hotel, Siemens Regional Chief Executive Officer Dr. Armin Bruck indicated that through the Philippine Wholesale Electricity Spot Market (WESM), “we have a first example that EVN would be able to look at on this kind of solution.”
Vietnam itself is pursuing the privatization of its state-owned power assets, thus, the well anticipated broadening of ownership could spur its way into designing and operating its own spot market.
“For Vietnam taking a reference on the Philippines, that will be a real synergy for us, especially on providing cost competition to customers,” Bruck stressed.
He added that if they win the spot market development tender in Vietnam, “we may have a similar system like what we have done in the Philippines. EVN is already looking at the Philippines – studying how it is done, how they shall do it and how can they benefit from that.”
Other than Vietnam, Bruck noted that the WESM in Manila is similarly being held as reference even for other electricity markets in the Asian region.
“Even other countries are now looking at Manila. This is an ideal situation for us, as well as for them. We have fantastic reference in the Philippines being one of the firsts to have a spot market in Asia,” Bruck said.
In the Southeast Asian domain, it is just the Philippines and Singapore now that have electricity spot markets – with both markets having struggles and birth pains also of having to deal with cost spikes at some point into their operations.

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