HCMC – Producers and customers can now directly buy and sell clean energy through a power purchase agreement, with electricity prices determined by mutual agreement between both parties.
The Government issued Decree 80 on July 7 regarding the direct power purchase mechanism between renewable energy generators and large electricity consumers, according to the Government news website (baochinhphu.vn).
The decree stipulates that direct power transactions will be conducted in two forms.
The first is direct power transactions through a power connection line between renewable energy generators and large electricity consumers, allowing trading transactions to be done without involving Vietnam Electricity Group (EVN).
The second form is direct power transactions through the national grid, facilitated by a futures contract between renewable energy generators and large electricity consumers.
Renewable energy sources eligible for the option bypassing EVN include solar, wind, small hydroelectric, biomass, geothermal, wave, tidal, marine current, and rooftop solar systems. These projects must obtain an electricity operating license or qualify for exemption as per regulations.
Energy-from-waste has not been incorporated into this mechanism due to the absence of clear regulations defining its status as renewable energy, as previously explained by the Ministry of Industry and Trade.
To facilitate transactions via power connection lines, renewable energy generators and large customers will enter into purchase agreements specifying conditions and prices agreed upon by both parties. Excess electricity can be sold back to EVN under contracts that regulate capacity, output, and pricing.
Electricity buyers can also engage in electricity transactions with EVN or retail units not affiliated with EVN.
