Decision No. 1670/QD-TTG dated November 08, 2012 of the Prime Minister approving the scheme on development of intelligent power grid in Vietnam

DECISION

APPROVING THE SCHEME ON DEVELOPMENT OF INTELLIGENT POWER GRID IN VIETNAM

THE PRIME MINISTER

Pursuant to the Law on Government organization, of December 25, 2001;

Pursuant to the Electricity Law, of December 03, 2004; the Government s Decree No.105/2005/ND-CP, of August 17, 2005 detailing and guiding implementation of a number of articles of Electricity Law;

At the proposal of Minister of Industry and Trade,

DECIDES:

Article 1.To approve the scheme on development of intelligent power grid in Vietnam with the following content:

1.Objective:

a) General objective: To develop intelligent Power grid with modern technology aiming to enhance power quality, reliability of power supply; contribute in management of power demand, encouraging thrift and effective energy use; facilitate to enhance labor productivity, reduce demand of investment in power grid and source development; strengthen reasonable exploitation of energy resources, ensure national energy security, contribute in environmental protection and sustainable socio-economic development.

b) Specific objective:

-To finalize system of legal documents in electricity sector, to create legal basis for development of intelligent Power grid: To review, amend and supplement existing legal documents; formulate new legal documents on development of renewable energy source; formulate relevant technical standards, regulations.

-To build infrastructure of information technology, telecommunication and strengthen the supervision and automatic control system for electrical system, remote measurement system:

+ By 2013: To set up completely the system collecting figures, supervising SCADA control, the remote measurement system to all power plants with capacity of more than 30 MW, substations of from 110 kV or more in electrical system.

+ By 2016, to exploit all functions of the energy management system (EMS) in the system SCADA/EMS in the national electrical system moderation center and regional electrical system regulation centers.

+ By 2022, the system SCADA/DMS for Electric Corporations, remote measurement systems are invested completely to all big clients use electricity.

-To enhance the reliability of electricity supply: System average interruption frequency index – SAFI reduces 10%; System average interruption duration index – SAIDI reduces 20% after each period of 5 years.

-Equipping automatic devices and control devices in order to increase labor productivity in electricity sector: To reduce number of persons at the 110 kV substation with equipping automatic devices and remote controls at 3-5 persons/station; to implement remote manipulation switching on/off medium-voltage grid.

-To strengthen ability to forecast demand of sub-loadof electricityand make plan on power supply; restrain the power reduction due to lack of source through mechanism of displacement of peak sub loading in rush hour or emergency cases: To reduce 1-2% of rush-hour sub loading through applications of AMI - Advanced Metering Infrastructur.

-To implement technical solutions, management measures aiming to reduce electricity losses (technical losses and trade losses) in the system of power transmission and distribution from 9.23% in year 2011 down 8% in year 2015.

-To apply the intelligent Power grid technology in order to connect, operate stably new and renewable energy sources aiming to facilitate to exploit effectively, contribute in encouraging development, increasing rate of power sources using new and renewable energy, contributing in environmental protection, assurance of national energy security.

-To encourage domestic researching, manufacturing some intelligent electronic products on Power grid, meeting the technological demand for intelligent Power grid.

-To facilitate for clients to proactively know and manage detailed information on power use, cost of electricity buying.

2.The roadmap of intelligent power grid development in Vietnam

To approve the roadmap of intelligent power grid development in Vietnam according to three periods, specified as follows:

a) Period 1 (2012-2016):

-Program on enhancing effectiveness in electrical system operation:

+ To finalize the project SCADA/EMS for the National Electrical System moderation Center, regional Electrical System Regulation Centers. To supplement devices in order to assure collection of figures on electrical system operation in power plants, substations with voltage level of from 110 kV or more; to finalize the automatic recording system of electronic meter for measurement at output of source, deliver and receive electricity to all power plants and stations of 500kV, 220kV, 110kV.

+To develop applications aiming to strengthen the reliability, optimizeoperation of transmission Power grid, distribution Power grid, reduce power losses; strengthen the system recording incident, system detecting and preventing power failure malfunction on wide area aiming to assure the safety in transmission on electrical system 500 kV.

+ To examine, supervise implementation of regulations on compulsory system collecting figures in power plants, substations with voltage of 110 kV or more.

+ First step, equip system SCADA for some power distribution corporations; equip the software, hardware system, telecommunication system, automatic and remote control system for some stations of 110 kV being selected.

+ To train, enhance capability to implement the intelligent Power grid for the National power transmission corporation, the National electrical system moderation center, corporations and companiesof electricity.

+ To complete project on technical support for sub-load research, project on adjusting power sub-load (demand side response) for corporations, companies of electricity.

+ To develop and deploy the advanced operation instruments aiming to integrate a big quantity of renewable power sources which cannot control (wind power, solar power, etc) in to system.

-Testing programs:

+ The testing project of AMI - Advanced Metering Infrastructure at some big clients of the Ho Chi Minh city Power Corporation in order to implement program on sub-load management.

+ The testing project on integrating power sources using new and renewable energy at the Central region Electricity Corporation: To apply for small Hydro-power sources, power sources using new and renewable energy.

-To formulate the system of legal documents:

+ To finalize processes on researching sub-load of electricity.

+ To formulate a promotion mechanism for clients participating in the program on sub-load management in the testing program at the Ho Chi Minh city Electricity Corporation. + To assess effectiveness from the testing program, to finalize the promotion mechanism for clients participating in the program on sub-load management.

+ To formulate system of legal documents allowing to apply technical standards, regulations on moderation – operation for automation of substations and remote controls in electrical system.

+ To propose financial mechanism for development of intelligent Power grid.

+ Based on results of research and assessment on effectiveness of programs in reality, to promulgate newly or amend legal documents creating legal corridor for building infrastructure and deploying applications of intelligent Power grid.

-To formulate technical regulations: To research, promulgate technical standard regulations for intelligent Power grid, including: System AMI; technical standards of automatic system, remote control system of substation; System SCADA/EMS/DMS; standard to integrate power source using new and renewable energy in dispersal form; structure of the intelligent distribution Power grid and other relevant technical regulations.

- The mediaprogramfor community:

+ To build and popularize the Program on development of intelligent Power grid for state management agencies, units generating power, units distributing power and big clients using power.

+ First step, to popularize the Program on development of intelligent Power grid for clients using civil electricity.

b) Period 1 (2017-2022):

-To continue to implement the Program on strengthening effectiveness of electrical system operation, concentrating on distribution Power grid; equip the information technological and telecommunication infrastructure for distribution Power grid:

+ To deploy complete systems SCADA for Power corporations, continue to equip automatic systems for substations of 110 kV.

+ To deploy system SCADA/DMS at some electrical station of provinces, cities with big sub-load in the system, connecting with some substations distributing medium voltage being selected.

+ To continue to train, enhance capability to implement the intelligent Power grid for corporations and companies of electricity.

+ To develop tests on optimizing operation of transmission Power grid.

To deploy applications of intelligent Power grid:

+ To popularize experiences on system AMI. To deploy expansion of installment of system AMI for big clients at all Corporations of Electricity; deploy the testing project for clients participating in power purchase and sale in competitive electricity market (competitive wholesale market and pilot competitive retail market) at corporations of electricity.

+ To deploy integrating dispersal power sources, new and renewable energy sources connected into the electrical system by voltage level of medium and low voltage.

+ To implement testing projects on Smart Home.

+ To formulate Smart City tests.

-To formulate legal documents:

+ To research, propose competent agencies to promulgate mechanisms: encouraging application of intelligent Power grid in development of new, renewable energy sources; encouraging application of intelligent Power grid for buildings not using energy from outside (zero energy house); application of intelligent Power grid in buying, selling, exchanging electricity from side of clients with corporations of electricity.

+ To formulate a mechanism to encourage application for civil clients to participate in the program on sub-load management.

-To formulate technical regulations: Researching, proposing competent agencies to promulgate technical standards for the energy storing technology, smart appliances at home with ability to adjust energy-consumption rate under the electric supply condition or change of power price table.

-The media program for community:

+ To update the media program for intelligent Power grid supplemented changes on new prices and charges.

+ To popularize widely – gradually – on program (intelligent Power grid) to civil clients.

c) Period 3 (from after 2022):

-To continue the Program equipping information technological – telecommunication infrastructure for distribution grid:

+ To develop system SCADA/DMS for all provincial companies of electricity to a rational quantity of medium voltage distribution stations.

+ To deploy tools optimizing the operation from transmission Power grid to distribution Power grid.

+ To deploy system AMI for civil clients, facilitate for clients to participate in competitive electricity retail market.

+ To continue to encourage development of dispersal power plants.

-The program deploying applications of intelligent Power grid: To deploy applications of intelligent Power grid allowing balancing the electricity supply and demand at level of electricity user. To popularize use of new, renewable energy at distribution power grid with mechanism of price buying and selling electricity under each point time combined with operation of the competitive electricity retail market.

To formulate legal documents allowing to deploy applications of intelligent Power grid on the basis of the existing information technological infrastructure.

Article 2.Organizing implementation

1.To assign the Ministry of Industry and Trade to preside over implementation:

-To establish Steering Commitee of intelligent Power grid development in Vietnam, head is a leader of the Ministry of Industry and Trade, standing agency is Bureau of Electricity regulation. Steering Commitee of intelligent Power grid development has representatives of Ministriesof: Finance, Planning and Investment, Science and Technology, Construction, the Vietnam Electricity Group and some relevant agencies,units. The Steering Commitee has duty to direct units in electricity sector to formulate specific projects, define specific targets in each project, assign to units for implementation, supervision of implementation.

-To hold construction and development of intelligent power grid in Vietnam in accordance to the approved roadmap.

-To promulgate or submit to the Prime Minister for promulgation of legal documents, necessary mechanism, policies under their authority in order to create legal corridor boosting development of intelligent power grid in Vietnam.

-To assume the prime responsibility for, and coordinate with the Ministry of Finance to formulate a suitable financial mechanism in order to mobilize capital sources for investment in infrastructure of intelligent power grid under each region and specific period aiming to attain purpose of effectively using capital sources, sharing cost and benefits with clients.

-To assume the prime responsibility for, and coordinate with the Ministry of Construction and relevant Ministries, agencies to formulate promotion mechanism for application of intelligent power grid in zero energy houses, Smart Cities.

-To assume the prime responsibility for, and coordinate with the Ministry of Planning and Investment and relevant Ministries, agencies to find financing capital sources of countries and international organizations implementing projects on supporting technique in formulate legal frame for development of intelligent power grid; study on standards, formulate specific programs, implement the testing program of intelligent power grid in Vietnam.

-To assume the prime responsibility for, and coordinate with relevant units to implement testing projects having been approved in the Roadmap: The testing project of system AMI at the Ho Chi Minh city Electricity Corporation; the testing project on integrating dispersal power sources at the Central Electricty Corporation.

2.The Vietnam Electricity Group:

-To make specific plan in order to implement program, project, task groups for each period, submit to the Ministry of Industry and Trade to approve specific targets for each program, project, task groups.

-To hold implementation of intelligent power grid projects in Vietnam in conformity with the periods of intelligent power grid development having been approved.

-To train to enhance capability of staff of management and operation of intelligent power grid system in the future.

-To invest completely necessary infrastructures in order to develop intelligent power grid in accordance to the approved roadmap.

3.The other relevant Ministries, agencies proactively coordinate with the Ministry of Industry and Trade under functions, tasks within their state management during the course of implementation of the roadmap on development of intelligent power grid in Vietnam having been approved in this Decision.

Article 3.This decision takeseffect on the day of signing.

Ministers, Heads of ministerial-level agencies, Heads of Governmental agencies, the Vietnam Electricity Group and relevant agencies shall implement this Decision.