Why establishing the right regulatory frameworks is crucial to creating competitive electricity markets

ERAV MOU signing
In April, the Australian Embassy in Vietnam and the Electricity Regulatory Authority of Vietnam signed a Memorandum of Understanding (MoU) to develop a competitive power market.

Vietnam is committed to promoting a cleaner energy mix, tackle climate change, and accelerating green growth through regulatory reforms that enable a more competitive energy market. Australia is a key partner in this journey, with Partnerships for Infrastructure (P4I) expanding bilateral cooperation on the clean energy transition over the past two years.

P4I has facilitated growing engagement with the Electricity Regulatory Authority of Vietnam (ERAV) under the Ministry of Industry and Trade (MOIT). In April, the Australian Embassy in Vietnam and ERAV signed a Memorandum of Understanding (MoU) to develop a competitive power market. This MoU is part of the Comprehensive Strategic Partnership (CSP) between Vietnam and Australia, aimed at strengthening climate and energy collaboration.

Vietnam’s ambitious renewable energy targets depend on a competitive power market that attracts private investment and independent power producers. A predictable and enabling policy and regulatory environment is essential for scaling up projects. Clear rules, streamlined permitting processes and incentives like tax credits and equipment import exemptions are crucial for creating an attractive investment climate.

Comprehensive energy sector regulatory reforms will help establish a level playing field for private investors and technology providers, encouraging sustained private investment necessary to achieve clean energy goals.

Australia's Southeast Asia Economic Strategy to 2040 supports regional governments in creating an enabling environment and remove investment barriers. Vietnam’s ongoing investment reform to introduce competition into its energy markets aims to promote a cleaner energy mix, combat climate change, and support green economic growth.  

The activities under the MoU will draw on Australia's renewable energy transition experience, assisting ERAV to meet the ambitious goals of Vietnam's Eighth Power Development Plan's (PDP8). P4I will continue to support technical cooperation activities, building on successful engagement with ERAV to date.

P4I is proud to collaborate with ERAV, laying the groundwork for sustained Australia-Vietnam cooperation in driving clean energy transition. This partnership aims to attract investment, accelerate economic growth and align with the energy and climate ambitions of both countries. Clean energy transition is central to P4I’s work in Vietnam, and we are committed to realising the MoU’s ambitions through effective technical cooperation, benefiting both nations on their journey towards prosperity and sustainable growth.  

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