Brian Jeffrey
The Ministry of Industry and Trade in Vietnam has issued a directive to all provincial People’s Committees and Vietnam Electricity (EVN) to implement Decree 80. This decree focuses on establishing a mechanism for direct power purchase agreements (DPPA) between renewable energy producers and significant electricity consumers.
Starting from July 3, 2024, Decree 80 provides a framework for DPPAs aimed at strengthening cooperation between renewable energy providers and major electricity users.
In order to ensure a consistent and effective implementation of Decree 80, the Ministry of Industry and Trade has directed provincial authorities to oversee and monitor compliance among renewable energy producers and large electricity consumers in their respective areas.
The Ministry highlighted the importance of adhering to a range of legal regulations, including:
– Planning and Investment: Alignment with national and provincial electricity development plans.
– Licensing Requirements: Compliance with all electricity operation licensing standards.
– Fire Safety and Prevention: Adherence to fire safety regulations.
– Land Use and Environmental Protection: Compliance with land use and environmental protection laws.
– Electricity Usage Safety: Following safety standards in electricity usage.
– Electricity Trading and Contractual Regulations: Observance of legal provisions related to electricity trading and contracts.
Local authorities have been assigned the responsibility of managing the list of significant electricity consumers involved in direct power purchases via dedicated connection lines. They are also tasked with inspecting, monitoring, addressing complaints, and handling violations during the implementation of the DPPA mechanism.
Alongside the directive to local authorities, the Ministry of Industry and Trade has issued guidance to EVN and its subsidiaries to support the implementation of Decree 80. This collaboration is crucial for the seamless integration of DPPAs into the existing energy landscape.
A representative from a renewable energy company expressed to VietNamNet that both large electricity consumers and producers are keen on the decree. The Ministry’s comprehensive approach to addressing transmission costs and electricity system operation expenses has been well received.
“With this initiative, once full pricing is available, large electricity consumers and electricity producers can sit down to negotiate these contracts,” the investor stated.
The Ministry’s directive aims to ensure the harmonious and unified execution of Decree 80, promoting the development of direct power purchase agreements between renewable energy producers and major electricity consumers. This move is anticipated to boost collaboration in the energy sector, encourage the use of renewable energy sources, and contribute to sustainable development in Vietnam.
Hanh Nguyen
