Decision No. 4602/QD-BCT dated November 25, 2016 on approving the Master Scheme for Development of Smart Grids in Vietnam

DECISION

APPROVING THE MASTER SCHEME FOR DEVELOPMENT OF SMART GRIDS IN VIETNAM

MINISTER OF INDUSTRY AND TRADE

Pursuant to Law on Electricity dated December 03, 2004 and the Law dated November 20, 2012 on amendments to Law on Electricity;

Pursuant to the Government’s Decree No. 137/2013/ND-CP dated October 21, 2013 elaborating some Article of the Law on Electricity and the Law on amendments to Law on Electricity;

Pursuant to the Government's Decree No. 95/2012/ND-CP dated November 12, 2012, defining the functions, tasks, powers and organizational structure of the Ministry of Industry and Trade;

Pursuant to the Prime Minister’s Decision No. 1670/QD-TTg dated November 08, 2012 approving the Scheme for Development of Smart Grids in Vietnam;

Pursuant to Notice No. 79/TB-VPCP dated February 24, 2014 of Government Office on directives of Deputy Prime Minister Hoang Trung Hai at the meeting on Initiation of Development of Smart Grids in Vietnam and Notice No. 06/TB-VPCP dated January 07, 2015 of Government Office on directives of Deputy Prime Minister Hoang Trung Hai at the meeting on Progress of Development of Smart Grids in Vietnam in 2014 and objectives of 2015;

At the request of Vietnam Electricity (EVN) in document No. 1824/EVN-KTSX dated May 06, 2016 and the draft Master Scheme for Development of Smart Grids in Vietnam, revised on October 04, 2016;

At the request of the Director of Electricity Regulatory Authority,

DECIDES:

Article 1. Approving the Master Scheme for Development of Smart Grids in Vietnam (hereinafter referred to as “the Master Scheme”), which consists of 03 component schemes

1. Objectives:

a) Overall objectives:

- Gradually execute and realize the programs and plans to improve effectiveness of management and operation of the electricity system and contribute to achievement of the objectives of the Scheme for Development of Smart Grids in Vietnam approved by the Prime Minister under Decision No. 1670/QD-TTg dated November 08, 2012.

- Modernize the electricity infrastructure and improve productivity, quality of electricity and generation services, production and business efficiency; ensure continuous operation, stability, safety and reliability of the electricity system.

b) Specific objectives:

Implement 3 component schemes with the following specific objectives:

- Develop separate infrastructure and information technology systems for SCADA, control and protection systems of the electricity system, remote closing and breaking mechanisms of devices of power plants and power stations, ensure security, safety and reliability of dispatching and operation of the national electricity system. Utilize existing infrastructure; invest in and apply technological advances to uniformly develop the SCADA system, electricity meters and meter reading systems and telecommunications system to meet the increasing demand for scale and speed of the national electricity system while still ensuring efficiency of investment and operation.

- The models and gradually deploy Control Centers to operate remote breaking and closing mechanisms of devices of the National Power Transmission Corporation and Power Corporations in accordance with the industry organization and regulations on dispatch hierarchy in order to utilize the SCADA systems, information and telecommunications systems; apply new technologies to control and automation of power stations and grid devices in order to gradually converting the substations from manually-operated to semi-automatic or automatic, thus increase productivity and efficiency of the grid and reliability of power supply.

- Modernize the counting infrastructure; improve productivity and efficiency in management of counting data, thus reduce human errors in meter reading, improve customer services and provide adequate infrastructure for development of the electricity market; carefully plan the implementation to avoid putting too much pressure on electricity price increase.

- Ensure investment efficiency and frugality; master technology to satisfy safety and national defense requirements and prevent sabotage during the management and operation of the national electricity system.

- Implement the contents, programs and objectives of 3 component schemes in accordance with the Scheme for Improvement of Business Efficiency and Productivity during 2016 – 2020 of EVN.

2. Primary contents of each component scheme

a) Development of SCADA system in Vietnam’s electricity system:

- Invest in, develop and upgrade the SCADA/EMS, SCADA/DMS systems at dispatch centers of the national electricity system, regional electricity systems, power corporations of regions and provinces with the following objectives:

+ By 2020, complete installation of the SCADA/EMS, SCADA/DMS systems at dispatch centers of the national electricity system, regional electricity systems, power corporations of regions and provinces; ensure utilization of existing infrastructure, efficiency and optimization of all investment sources. The SCADA/EMS and SCADA/DMS systems shall be connected, hierarchically organized and shared to ensure adequate information and data serving the safe and reliable operation and dispatch of the national electricity system, and are compatible to control centers of power plants and substations when they are completed.

+ Power plants, power stations and control centers in the electricity system shall have sufficient RTU/Gateway terminal devices and telecommunications systems to ensure transmission of data to SCADA/EMS/DSM systems of dispatch control systems and control centers in accordance with the Regulation on Electricity Transmission System and Regulation on Electricity Distribution System promulgated by the Ministry of Industry and Trade.

+ Uniformly implement solutions including infrastructure investment, technical management, operation management and personnel training to ensure continuous transmission of SCADA signals from power plants and power stations to the dispatch control systems; ensure continuous and stable signal transmission serving dispatch, operation and running of applications of SCADA / EMS, SCADA / DMS systems at dispatch control systems.  By 2020: i) 100% of power plants with installed capacity of over 30 MW, 500 kV and 220 kV substations are connected and have sufficient SCADA signals; ii) 100% of 110 kV substations and power plants with installed capacity of 10 - 30 MW are connected to SCADA system and 90% of them have sufficient SCADA signals for operation.

+ Gradually develop and initiate EMS system and DMS system in the SCADA system at dispatch centers by 2020, especially real-time applications serving operation and dispatch of the electricity system to ensure stability, safety and reliability of the national electricity system and improve quality of electricity supply such as: capacity trend calculation, breakdown analysis, status assessment, capacity trend optimization, automatic capacity adjustment, load forecasting.

- Continue completing the dedicated telecommunications system of EVN to provide a reliable channel for electricity production, business operation and operation of the electricity system. It is expected that the following objectives are achieved by 2020:

+ 100% of power plants with capacity over 30 MW, 500 kV and 220 kV substations are connected by two independent optical transmission cables.

+ 100% of 110 kV substations are connected to the control centers or dispatch centers by optical cables.

+ Over 90% of electricity companies of districts are connected by optical cables to the dedicated telecommunications system.

b) Organization of control centers for remote breaking and closing mechanisms of devices on the grids of National Power Transmission Corporation and Power Corporations:

- Utilize existing infrastructure; gradually study,  invest in, upgrade and apply control center models to operate remote breaking and closing mechanisms of devices of the transmission grids and distribution in a manner that is appropriate for the organization, hierarchy, structure of the electricity industry and applicable regulations; ensure safety during operation of the electricity system; improve reliability and quality of electricity supply; improve efficiency of production and operation.

- Transmission grid control center model: the control center can be installed within an existing substation or a new substation on the electricity transmission system to remotely control a group of substations in the region; operators at the control centers shall remotely control the devices according to the dispatch instructions of dispatch control systems.

- Distribution grid control center model: the control center can be installed in the dispatch center/room of the distribution grid of the province or at the branch of a high voltage grid company o remotely control he devices according to the dispatch instructions of dispatch control systems or the devices under their control.

- Control centers shall be developed together with application of control technologies, automation of power stations and grid devices to convert the substations from manually-operated to semi-automatic or automatic.

- By the end of 2020, it is expected that 60% of 220 kV substations and 100% of 110 kV substations under the management of National Power Transmission Corporation and Power Corporations are automatic; ensure safe, reliable and efficient remote control and operation of 220 kV and 110 kV substations in the national electricity system.

c) Development of electronic meters and remote data collection system:

- Apply technological advances and information technology to upgrade the electricity metering system and meter reading system at generation points and delivery points between units and clients in the national electricity system serving operation of the electricity system and competitive electricity market.

- Develop a specific plan, determine the scope and order of priority of modernizing the metering infrastructure, provision of electronic meters and remote meter reading system for clients with the following objectives: (i) The cost is not too much higher than that of mechanical meters and do not put pressure electricity prices to increase; (ii) Satisfy quality standards of electronic meters and remote meter reading systems; (iii) Ensure reliability, accuracy, security of meter reading data; (iv) Ensure investment efficiency and improve productivity; (v) Improve customer service quality

- Specific objectives: (i) Complete the metering system and remote meter reading system by the end of 2017, including metering between the units and master meters of 0,4 kV distribution substations; (ii) 50% of customers have electronic meters connected to the remote meter reading system by the end of 2020.

- Consider leasing out electronic meters to customers (including residential customers) in order to widely apply Time-of-Use rates.

- Formulate plans and road map to provide advanced metering infrastructure in accordance with the road map for development of smart grids in Vietnam approved by the Prime Minister under Decision No. 1670/QD-TTg dated November 08, 2012.

Article 2. Organization of implementation

1. Electricity Regulatory Authority shall:

a) Supervise EVN and its affiliates implementing the approved Master Scheme to achieve overall and specific objectives therein.

b) Cooperate with relevant Ministries and central authorities in giving guidance and supervising the implementation of the Master Scheme to achieve the objectives, ensure safety and security of Vietnam’s electricity system.

c) Study and propose application of policies to improve reliability and quality of electricity and customers service.

d) Propose amendments to technical regulations serving development of smart grids, necessary programs and schemes to complete the overall structure of smart grids.

dd) Annually evaluate the implementation of the Master Scheme; submit reports to the Ministry of Industry and Trade and the Steering Committee for Development of Smart Grids in Vietnam.

2. ENV shall:

a) Provide guidance for its affiliates on preparation and implementation of detailed plans to achieve the approved objectives specified in this Decision in a manner that is appropriate for their finance and operation in order to ensure investment efficiency. Plan the utilization of existing infrastructure, circulation of usable devices and meters, training and reassignment of redundant employees to optimize investment efficiency and human resources.

b) Intensify inspection and supervision of affiliates; cooperate with relevant units in increasing the ratio of full connection to SCADA signals of power plants and substations in the national electricity system to achieve the approved objectives specified in this Decision.

c) Integrate financial contents relevant to the plan for investment in the projects in the Master Scheme and its impact on electricity price increase in the “5-year business operation and investment plan 2016-2020”; submit a report to the Ministry of Industry and Trade, which will submit it to the Prime Minister for consideration and decision.

d) Request affiliates to increase communication of the modernization of Vietnam’s electricity system, improvement of quality of electricity supply and customer service, including uniform integration of contents of the Master Scheme.

dd) Seek domestic and overseas sponsorships for implementation of programs/projects within the framework of the Master Scheme.

e) Submit biannual reports on implementation of the Master Scheme to Ministry of Industry and Trade and the Steering Committee for Development of Smart Grids in Vietnam.

3. Difficulties that arise during the implementation of this Circular should be reported by EVN and units to the Ministry of Industry and Trade (via Electricity Regulatory Authority) for instructions.

Article 3. Effect

1. This Decision comes into force from the day on which it is signed.

2. Chief of the Ministry Office, Director of Electricity Regulatory Authority, Director of Energy Authority, General Director of EVN, members of the Steering Committee for Development of Smart Grids in Vietnam and heads of relevant units are responsible for the implementation of this Decision./.