24 projects with a capacity of 1,773 MW want to participate in the pilot direct purchase and sale mechanism between renewable energy generators and large electricity users (DDPA).
This information was announced by the Ministry of Industry and Trade in a report recently sent to Prime Minister Pham Minh Chinh. This agency said that, in 106 projects with installed capacity of 30 MW or more (including 41 solar and wind power projects) under the adjusted Plan VII, the Ministry sent a survey form on participating in the pilot Direct Power Purchase Agreement (DDPA).
Among the responding enterprises, 24 projects (capacity of 1,773 MW) wanted to participate in the pilot mechanism. 17 projects with capacity of 2,836 MW said they were considering the conditions for participation, the ability to find and sign contracts with customers. Meanwhile, 26 other projects said they did not want to participate in the DDPA.
On the electricity customer side, 24 units said they wanted to participate in the pilot of this mechanism, with a total demand of about 1,125 MW.
The Ministry of Industry and Trade said that there is currently sufficient legal basis to implement electricity trading via private lines directly connected, meaning not through the national grid. In this case, when implementing, the Ministry will have detailed instructions for implementing units.
On the contrary, the case of buying and selling electricity through the national grid is assessed by the Ministry of Industry and Trade as "still quite complicated, so it is recommended that the Prime Minister direct". Therefore, this agency proposed two options to implement the direct electricity buying and selling mechanism in Vietnam.
Firstly, the provisions on the DPPA mechanism in the Electricity Law and the implementation of this mechanism depend on the time of amending and promulgating the revised Electricity Law, expected in 2025-2026.
Second, the Ministry of Industry and Trade recommends that the Government issue a Decree regulating the implementation of the DPPA mechanism, according to Article 70 of the Electricity Law.
After consideration, the ministry proposed that the Prime Minister consider issuing the DPPA mechanism in the form of a Government Decree.
In fact, the Government has urged the Ministry of Industry and Trade to complete the Direct Power Purchase Agreement (DDPA) mechanism, but it is currently delayed. In the conclusion announcement last week by Deputy Prime Minister Tran Hong Ha, he asked the Minister of Industry and Trade to learn from experience, review and clarify a number of contents within his authority to issue, and speed up procedures to soon introduce this mechanism.
Two years ago, the Ministry of Industry and Trade solicited opinions on a draft mechanism for direct electricity trading, with a pilot capacity of 1,000 MW. Accordingly, buyers and sellers negotiate and agree to buy electricity directly from solar and wind power plants through price-based forward contracts. Electricity trading will be conducted through the spot electricity market, operating according to the regulations of the Ministry of Industry and Trade on the competitive wholesale electricity market.
At that time, many large corporations such as Samsung proposed to participate in piloting this mechanism.
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