DPPA has been identified in the Electricity Law, which is the foundation for building a competitive electricity market. Accordingly, state management is separate from electricity production, business, transmission, and distribution activities
Deputy Prime Minister Tran Hong Ha says that DPPA mechanism has been identified in Electricity Law, which is foundation for building competitive electricity market.
The Deputy Prime Minister said that the Decree needs to clarify participants of DPPA; rights, responsibilities, and obligations of parties participating in this mechanism for economic benefits and ensuring grid safety; prioritizing policies to encourage businesses to consume green energy and renewable energy to get green credits; etc.
Deputy Minister of MOIT Nguyen Sinh Nhat Tan said that the draft Decree regulates on direct power purchase through private lines; direct power purchase through the national grid; implementation sequences, responsibilities of relevant units, etc. The viewpoint of developing the decree is to ensure feasibility, and immediate implementation, and limit the number of guiding documents.
Accordingly, direct power purchase through separate connection lines is applied to customers near the generation source and implements the power trading without using the transmission or distribution grids. Power trading in this case is conducted simply, the electricity price is agreed between the power generating units and the customers. Currently, this form of direct power purchase has been deployed in industrial parks.
Direct power trading through the national grid is applied to customers far from the generation source, and electricity is traded through the spot electricity trading market. Accordingly, customers are responsible for payment according to the spot electricity market price plus service prices (including Power transmission prices, power distribution prices, power system operating and dispatching prices and operating prices of electricity market transactions, power system support service prices) and other payment costs.
Only power generated by renewable energy can be sold directly to customers.
Deputy Minister of MOIT Nguyen Sinh Nhat Tan reports some basic contents of Decree on DPPA mechanism.
The development and promulgation of the Decree stipulating the DPPA mechanism will meet the trend of using clean energy for electricity customers; contribute to attracting investment in the sustainable development of renewable energy; aim to deploy a competitive retail electricity market in Vietnam; improve the effectiveness of state management of direct electricity trading activities between renewable energy generators and large customers.
Opinions at the meeting continued to clarify detailed regulations on the criteria for determining the scope and subjects participating in the DPPA mechanism according to generation capacity, consumption output, and transmission voltage; clarify the connotation and define concepts, such as large customers, direct sales; the relationship between power generation units, consumers and Vietnam Electricity (EVN); sequence and procedures for determining consumption levels and granting green credits to businesses using renewable energy, and so on.
Chairman of EVN Board of Directors Dang Hoang An said that it is completely possible to create a direct electricity trading market without limiting sellers and buyers. Participating parties will pay all costs for EVN in ensuring power grid safety, operation, transmission, and so on.
Chairman of EVN's Board of Directors Dang Hoang An making speech.
Concluding the meeting, Deputy Prime Minister Tran Hong Ha stated clearly that the Decree only focuses on producers and consumers of renewable electricity (manufacturing, service, commercial enterprises, and electricity retailers in industrial parks.
Regarding the form of direct electricity trading through private lines, or more investment made in electricity storage systems, the Deputy Prime Minister suggested the direction of not having regulations on capacity scale limits, not depending on planning, and being managed according to legal regulations on taxes, environment, fire prevention, construction safety, etc.
The form of direct electricity trading using the national grid shall be calculated correctly and fully in the costs of using operating and transmission infrastructure, ensuring system safety, and in accordance with electricity plans.
The Deputy Prime Minister requested MOIT and EVN to calculate and announce the renewable power capacity that can be mobilized and transmitted based on the base power source capacity, as a basis to adjust and reduce coal and gas power sources in the planning.
"National Power Development Plan 8 does not limit renewable energy when it is replaced and meets the technical criteria to replace other energy sources, with reasonable prices," the Deputy Prime Minister emphasized.
In addition, the Decree needs to stipulate a transparent and public process on the current status of power sources that businesses are using so that State agencies can manage, inspect, supervise, and provide green credits.
The Deputy Prime Minister also commented on content related to direct trading of rooftop solar power in industrial parks; renewable power sources with equipment and batteries to store power; assessment of the impact on prices and production costs of businesses using renewable power sources on people's ability to pay costs, and so on.