The decree, announced on July 3, outlines a mechanism for direct power transactions between renewable energy producers and major electricity consumers. This initiative aims to enhance flexibility and competition in Vietnam’s energy sector. Through two methods: private power lines and the national grid.
For private power lines (bypassing EVN), renewable energy producers, including solar, wind, small hydro, biomass, geothermal, ocean wave, tidal, marine current, and rooftop solar systems, can participate. These projects are not restricted by capacity, but must possess or be exempt from an electricity operation licence.
For national grid transactions, the decree clarifies the sale of electricity through the spot market and via the National Power Transmission Corporation. Spot market prices are determined by the total market price of electricity during each transaction cycle, combining energy and capacity market prices in the wholesale market.
Consumers can purchase electricity directly from renewable producers, National Power Transmission Corporation, or other retail electricity entities apart from EVN.
Allowing rooftop solar to participate in direct power purchase agreements will address regulatory hurdles and complement policies for self-produced, self-consumed solar power currently being drafted by the Ministry of Industry and Trade (MoIT).
A year-end survey by the Ministry revealed that approximately 20 large enterprises are keen on direct power purchases, with a combined demand of nearly 1,000MW. Concurrently, 24 renewable energy projects with a capacity of 1,773MW are looking to sell electricity via DPPA, while 17 projects with a capacity of 2,836MW are considering participation.
Vietnam authorises DPPA for rooftop solar and biomass projects
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