Vietnam Allows Renewable Energy Trading Between Producers And Consumers.
On 3 July 2024, the long-awaited Decree No. 80/2024/ND-CP (“Decree 80”) was issued by the Government with immediate effect, establishing a mechanism for the direct sale and purchase of electricity between renewable energy generators and large consumers.
What’s new?
- Decree 80 provides for the definitions of key stakeholders participating in the DPPA mechanism.
- The DPPA mechanism will be implemented in two (2) forms: Private Grid DPPA mechanism and National Grid DPPA mechanism.
- The implementation of Decree 80 may offer advantages for stakeholders in the renewable energy market.
Definitions for key stakeholders
Renewable energy generators (the “RE Generators”) are power units that own plants generating electricity from renewable sources such as solar, wind, small hydro, biomass, geothermal, sea waves, tides, ocean currents, other renewable forms, and rooftop solar power systems holding an electricity generation license (or exempted from electricity generation license per the law).
Large consumers (the “Large Consumers”) are organisations and individuals that purchase electricity for use without re-selling purpose, to be determined by the Ministry of Industry and Trade (MOIT) from time to time or those have the average (or registered) electricity consumption from 200,000 kWh per month if using electricity more than 12 months (or less than 12 months).
For further information, please contact:
Tran Trang Nhung (Gaby), Indochine Counsel
nhung.tran@indochinecounsel.com
