A breakthrough step
Speaking at the opening of the conference, Minister of Industry and Trade Nguyen Hong Dien emphasized that on July 3, the Prime Minister had issued Decree No. 80/2024/ND-CP stipulating the DPPA mechanism. This is a breakthrough step in the roadmap to develop a competitive electricity market in Vietnam. At the same time, it will help manufacturing businesses have the opportunity to choose electricity suppliers to achieve green production certificates, etc.
Minister of Industry and Trade giving speech to direct conference
At the conference, Mr. Pham Quang Huy - Deputy Director of the Electricity Regulatory Authority briefly reported the main contents and features of the DPPA mechanism; at the same time, once again emphasized the promulgation of the DPPA mechanism demonstrates the determination and great efforts of the Government, the Ministry of Industry and Trade and relevant ministries, authorities and corporations in building and perfecting the mechanisms/policies in an advanced, fair, transparent manner, creating incentives to attract private capital to investment and use of renewable energy, as well as promoting the development of a competitive electricity market in Vietnam.
With the promulgation of the Decree, large electricity customers with an average consumption of 200,000 kWh/month who wish to use renewable energy will be able to buy electricity "directly" from renewable energy producers with two policies via Private Connection Lines or via the National Grid.
The DPPA mechanism will for the first time allow renewable energy generators to choose to sell electricity directly to electricity customers in addition to selling electricity to Power Corporations. However, to ensure that the activities of the power generation unit (or power project investor) do not conflict or disrupt the plans and strategic goals set in the National Power Development Plan, compliance with legal regulations on planning and investment is a prerequisite for renewable energy generators in both DPPA policies to participate in this mechanism.
EVN’s Vice President Vo Quang Lam speaking at the conference
EVN and its member units will urgently carry out tasks to effectively implement the Decree. At the same time, the Group hopes to receive close coordination from local Departments of Industry and Trade, businesses, and associations to be able to deploy the DPPA mechanism in an early manner and conform to the Prime Minister’s directions, Mr. Vo Quang Lam said.
Effective implementation of the Decree
Concluding the Conference, Minister Nguyen Hong Dien emphasized the key tasks to effectively deploy the DPPA mechanism; at the same time, requested local authorities, Vietnam Electricity, the electricity system and electricity market operator, associations, businesses, and professional entities under the Ministry of Industry and Trade to focus on implementing the contents specified in Decree No. 80/2024/ND-CP.
EVN and its member units are requested to urgently calculate the costs of using power system services in the DPPA mechanism, build processes of business, management, payment calculation, and invoicing for customers participating in the DPPA mechanism as well as perform its function of administrating the participation registration and give guidelines for relevant entities to participate in the DPPA mechanism through the national grid, checking and monitoring technical requirements to ensure the power system operates stably, safely and uninterruptedly.