COMPARATIVE ANALYSIS OF INTERNATIONAL ELECTRICITY MARKET CRISES AND POLICY LESSONS FOR VIETNAM

Abstract

This paper conducts a comparative analysis of three typical electricity market crises worldwide: the 2021 Texas crisis caused by Hurricane Uri, the 2022 suspension of the Australian National Electricity Market (NEM), and the European energy crisis during the 2021-2023 period. The study employs a case analysis methodology to identify the causes, impacts, and remedial measures of each crisis. The results demonstrate that all three crises originated from a combination of extreme weather factors, inappropriate market design, and insufficient contingency mechanisms. The Texas crisis resulted in $195 billion in damages and 210 deaths due to 48% of power generation capacity becoming inoperative. Australia was forced to suspend the entire NEM market when electricity prices exceeded control thresholds. Europe experienced a prolonged crisis with electricity prices increasing by 1000% due to geopolitical conflicts. The lessons learned include: the need to improve resilience against extreme weather, design appropriate pricing mechanisms, develop flexible sources, and strengthen international cooperation. For Vietnam, the study proposes a roadmap for electricity market reform aimed at increasing flexibility, diversifying supply sources, and completing the legal framework