The Government has issued details of the direct power purchase agreement (DPPA) mechanism between renewable energy generators and large customers, with two options being through a private power line and the national grid via EVN.
Deputy Prime Minister Trần Hồng Hà urged the Ministry of Industry to complete the draft decree on direct power purchase agreement while provide a more persuasive explanation in terms of technical issues and ground for giving priorities to wind, solar...
DPPA is considered a foundation for Việt Nam to develop a competitive power market in which the State management will be separated from electricity production, transmission and distribution.
A survey conducted by the MoIT at the end of last year found that approximately 20 large companies were interested in purchasing electricity directly, with a total demand of nearly 1,000 MW.
Direct power purchase through the national grid will also help prevent the complicatedness in management and will not require huge investment in the infrastructure system.
The Ministry of Industry and Trade has submitted a report to the Prime Minister about options for a direct power purchase agreement mechanism (DPPA) between renewable power generators and large electricity users without going through Vietnam Electricity (EVN).
Big customers could buy electricity directly from the generators in a pilot programme to develop a mechanism for a direct power purchase agreement (DPPA).