In recent years, the rate of penetration of renewable energy sources (RES) into the Vietnamese power system continuously increased. Elaboration of the best grid codes to integrate renewable energy is one of the issues that must be solved in time. In order to prepare the most appropriate development plan, each country relied mainly on the cost curve marginal (Marginal Abatement cost - MAC) with optimal economic techniques to make the investment policy. In this study, the cost of electricity in the Vietnam power system is optimized by implementing a technical-economic optimization model solved hourly with 81 nodes, supported by a validated whether-converter renewable power generation data set and electricity demand data set. Numerical results indicate that these flexibility components can lead to a reduction in RES, allow a higher solar photovoltaics (PV) share with a factor of two and help meet electricity demand. From there, investors can make long-term investment orientation or short-term operation in conjunction with the small price determined in the competitive electricity market.

Keywords: Electricity market, Energy modeling system, Renewable energy, Solar energy, Storage system, Vietnamese power system, Wind energy