What should large electricity customers do when participating in DPPA mechanism via private connection line?

A large electricity customer is an organization or individual that buys electricity for use without reselling it to other organizations or individuals, according to the regulations of the Ministry of Industry and Trade in accordance with each development period of the electricity system or has an average consumption according to regulations.

The above content is the definition of a large electricity customer stipulated in Decree No. 80/2024/ND-CP dated July 3, 2024, of the Government regulating the mechanism of direct power purchase agreement (DPPA) between renewable energy power generation units and large electricity customers.

In addition to the requirement to ensure that the average electricity consumption at the time of applying to participate in the DPPA mechanism is 200,000 kWh/month or more (calculated on average over the last 12 months), for new large electricity customers or those with fewer than 12 months of electricity use, it is from 200,000 kWh/month or more (calculated according to registered output), large electricity customers must ensure the general requirements prescribed by laws on planning, investment; regulations on electricity operation licensing; regulations on electrical safety, fire, and explosion prevention and control in construction, land, environmental protection, operation (power generation, power transmission, power distribution) and safety in electricity use; regulations on electricity trading and contracts and other relevant legal regulations.

Illustrative photo (Source: https://cnccounsel.com/tin-tuc/viet-nam-thuc-day-co-che-mua-ban-dien-truc-tiep-dppa)

Signing power purchase agreement

Large electricity customers will negotiate, agree, and sign the power purchase agreement with the renewable energy power generation unit in accordance with the provisions of the Electricity Law and relevant legal documents.

The main contents of the power purchase agreement include Contract subject; purpose of use; service standards and quality; rights and obligations of the parties; electricity price, payment method and term; conditions for contract termination; liability for breach of contract; contract term; responsibility for investment, construction, management and operation of the private connection line; other contents agreed by the two parties. The electricity price is agreed upon by the two parties unless otherwise stipulated.

Large electricity customers are allowed to buy electricity from Power Corporations (or electricity retailers other than Power Corporations) according to regulations.

Reporting responsibility

Within 10 days from the date of signing the Direct Power Purchase Agreement via a private connection line, Large Electricity Customers are responsible for reporting relevant information to the Ministry of Industry and Trade, the People's Committee of the province, or centrally run city (where the project is located). The report content is information on the contract subjects (buyer, seller); agreed electricity output; and electricity price.

Annually, before January 30 of year N, Large Electricity Customers are responsible for reporting to the Ministry of Industry and Trade, the People's Committee of the province, or a centrally run city on the results of direct power purchase via a private connection line in year N-1. The report content is information on the contract subjects (buyer, seller); electricity output purchased in the year; direct power purchase costs in months and years; difficulties, problems, and recommendations.


  • 02/08/2024 04:44
  • Translator: Vân Ly
  • 188