Ministry requests local authorities to supervise direct electricity trading

By Phuc Van – Translated by Anh Quan| 17/07/2024 17:06

The Ministry of Industry and Trade has recently sent a document to local authorities and the Vietnam Electricity (EVN) proposing implementing a direct power purchase agreement (DPPA) mechanism.

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Ministry requests local authorities to supervise direct electricity trading

In its Official Dispatch No. 5028 sent to people's committees of 63 provinces and centrally-run cities on the implementation of the Government’s Decree No. 80/2024/ND-CP on regulating DPPA between renewable energy generators and customers using huge electricity applications (effective from July 3, 2024), the Ministry of Industry and Trade recommended that localities seriously implement planning and investment in accordance with national electricity development planning and provincial planning and regulations on licensing electricity activities; regulations on electricity trading and contracts and other related regulations.

While supporting DPPA, the Ministry of Industry and Trade has requested that local authorities take responsibility for monitoring and managing huge electricity consumers with direct power purchase agreements through dedicated connections without going through the national grid.

At the same time, local authorities also need to inspect, supervise, and resolve complaints, and handle violations during the implementation of DPPA within their areas.

Previously, as reported by the Sai Gon Giai Phong Newspaper, the Ministry of Industry and Trade held a meeting with EVN, renewable energy investors, and large consuming corporations (including foreign-invested enterprises) on the afternoon of July 5 to implement DPPA, chaired by Minister of Industry and Trade Nguyen Hong Dien.

According to the Ministry of Industry and Trade, electricity consumers with an average monthly consumption of 200,000 kWh or more and a desire to use renewable energy will be able to purchase electricity directly from renewable energy producers through two options including via a dedicated connection or through the national grid.

At the conference, representatives from various agencies, organizations, and international institutions such as the Vietnam Business Forum, Japan International Cooperation Agency, the US Embassy, the Clean Energy Asia, and Samsung expressed their support and appreciation for Vietnam's DPPA.

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Ministry requests local authorities to supervise direct electricity trading
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