Mechanism for direct power purchase proposed

The Ministry of Industry and Trade has submitted a report to the Prime Minister about options for a direct power purchase agreement mechanism (DPPA) between renewable power generators and large electricity users without going through Vietnam Electricity (EVN).
Mechanism for direct power purchase proposed ảnh 1 A wind power farm in Ninh Thuan province (Photo: VNA)
Hanoi (VNS/VNA) - The Ministry of Industry and Trade hassubmitted a report to the Prime Minister about options for a direct powerpurchase agreement mechanism (DPPA) between renewable power generators andlarge electricity users without going through Vietnam Electricity (EVN).

Specifically, in the first option, the buying and selling ofelectricity would be conducted through a private transmission line invested bythe private sector. With this option, the purchasing and selling of electricitywould not be limited in terms of capacity, output, connection voltage level andelectricity use purpose.

The power generators would be responsible for investing in theconstruction of power projects in line with the power development planning. Theplants and the customers must comply with the established regulations onelectricity purchase and sale.

The electricity retail prices for large users were regulated underDecision No 1062 dated May 4, with the average price at 1,920.3732 per kWh.

In the second option, electricity purchase and sale would beconducted through the national grid system, meaning that the trading must gothrough EVN, which currently holds a monopoly in electricity retailing.

As for this option, wind and solar power plants must be connectedto the national power system and have an installed capacity of at least 10 MW.Customers were required to purchase electricity for production purposes with avoltage of 22 kW or more.

In the period when the Law on Price had not come into effect, theretail electricity prices for production purposes would be regulated by thePrime Minister’s Decision No 24/2017 about the average electricity retailprices and Decision No 28/2014 about the electricity price bracket.

After the Law on Price came into effect, the electricity priceswould reflect properly and fully the charges on-the-spot electricity marketplus service changes.

The ministry said that it would give a push to the implementationof the first option.

An expert said that the DPPA mechanism would help ease the burdenon EVN in investing in power generation and transmission while encouraging theparticipation of the private sector in the power industry.

In many cases, customers could buy electricity at lower or higherprices, depending on the production costs of the generators.

In mid-July, Prime Minister Pham Minh Chinh asked the Ministry ofIndustry and Trade to complete the study on DPPA in an effort to speed up energytransition projects./.
VNA

See more

Illustrative image (Photo: VNA)

Vietnam, Algeria forge stronger economic bonds

The Vietnam Trade Office in Algeria held a meeting with representatives from several Algerian trade promotion organisations and businesses on January 15 to look back on bilateral trade and chart a course for future collaborations.

Swiss-Viet Economic Forum members (Photo: VNA)

Swiss-Viet Economic Forum helps boost bilateral collaboration

The Swiss-Viet Economic Forum (SVEF) set goals for 2025, focusing on continuing to serve as a bridge to strengthen economic and cultural relations between the two countries at an event on January 15 to celebrate the first anniversary of its establishment.

Workers at a Taiwanese company in An Duong industrial part, Hai Phong city. (Photo: VNA)

Hai Phong, Quang Ninh attract 7.82 billion USD in FDI in 2024

With 7.82 billion USD in foreign direct investment lured in 2024, the port city of Hai Phong and the northeastern province of Quang Ninh continued affirming their strong attraction as the two pillars of the northern economic triangle, that includes Hanoi.

TPBank secures 120 million USD loan from JICA. (Photo courtesy of JICA)

TPBank secures 120 million USD long-term loan from JICA

The Japan International Cooperation Agency (JICA) officially signed a loan agreement with the Tien Phong Commercial Joint Stock Bank (TPBank) under the Private Sector Investment Finance (PSIF) project on January 14.

Kim Long Motor Hue JSC and Changan Automobile Group sign a cooperation agreement on building a factory. (Photo: VNA)

New passenger car factory to be built in Hue

Kim Long Motor Hue Joint Stock Company and Changan Automobile Group (China) on January 14 signed a cooperation agreement to build a passenger car factory at an industrial park in the central city of Hue that will be capable of producing 50,000 vehicles per year.

Illustrative photo (Photo: VNA)

Quang Ninh sets land clearance as priority for FDI attraction

The northern province of Quang Ninh is on a mission to cement its status as one of Vietnam's premier destinations for foreign direct investment (FDI), with a strategic focus on land clearance for industrial park infrastructure projects this year.

Deputy Prime Minister Tran Hong Ha at the 12th meeting of the national steering committee for IUU fishing prevention and control on January 14 (Photo: VNA)

Deputy PM orders enhanced fishery management tools

Deputy Prime Minister Tran Hong Ha has asked the Ministry of Agriculture and Rural Development to complete the comprehensive integration and smooth connectivity to the national fisheries database (VN-Fishbase), vessel monitoring system (VMS), and electronic traceability system (eCDT) in Q1, ensuring seamless data flow from central to local authorities, a move to clamp down on illegal, unreported and unregulated (IUU) fishing.